Palmer Party should not vote on carbon/mining

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Gotti has never been one stand on ceremony when it comes to supporting business interests. But today he overlooks a serious problem in our new parliament:

During the election campaign countless thousands of words were written claiming Australia’s carbon tax would either not be removed because Tony Abbott would have second thoughts or would be blocked in the Senate. Assuming the Coalition was convincing, it was always a very dubious argument because the ALP would not want another election after a big defeat.

But, as it happens, the election gave effective control of the Senate to a group of unknowns and that makes the end of the carbon tax virtually certain, without a double dissolution. Leaving aside Nick Xenophon, who attracted votes in his own right, the independents were elected on complex preference arrangements and now have six years in the Senate. If there is a double dissolution in the second half of 2014 they may not be re-elected and their term will be closer to six months. So once it becomes a double dissolution issue carbon taxes will go, although there may need to be a committee on electoral reform set up to please the Palmer party.

This is a massive gloss over a breakdown in Australian democratic principles. The Libs need six of eight independent senators to support their legislation. With Nick Xenophon unlikely to budge that puts Clive Palmer’s two senators in the box seat.

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Mr Palmer has declared that he expects Palmer Party senators to vote with the party, that is himself, but on the carbon or mining tax legislation he has a clear conflict of interest with his businesses set to benefit.

Mr Palmer noted the other day that he would recuse himself from parliamentary debates that affected his business interests. His senators should do the same.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.