From the SMH:
Tony Abbott will have the first half of a constitutional trigger for a double-dissolution election in place by Christmas, after announcing plans to present his carbon price repeal legislation this year.
The move keeps open the chances of another election in the first half of 2014 if the eight bill package is rejected in December as expected and then rejected a second time by a hostile Senate in March or April.
The Prime Minister released an exposure draft of the package on Monday along with a commitment to introduce the legislation as his government’s first order of business when Parliament convenes for four weeks from November 12.
The government claims removal of the carbon price would send household energy prices tumbling, saving the average household $3000 over six years from July 1, when it would come into effect.
Failure to pass the repeal legislation before July 1 would either delay the scrapping substantially, or require any legislation passed subsequently be retrospective.
There’ll be no delay so long as Clive Palmer controls the Senate. The AFR adds that the ACCC will be deployed to ensure price cuts flow through to consumers:
The ACCC will have the power to monitor energy prices six months before the scheduled repeal on July 1, 2014, and for 12 months beyond that.
If the ACCC determines “the price for the supply is unreasonably high” it can issue fines of up to $1.1 million for corporations and $220,000 for individuals as well as institute damages claims, injunctions, order refunds and even limit prices.
I still have my doubts. Firms have every right to retain the carbon price margin given the price of “Direct Action” policies will be higher to the sector as the need to reduce emissions remains compelling even if the issue has been politicised.
If utility prices do fall by $270 per household they will be stimulatory, to the tune of $2 billion or more, 0.13 of GDP per annum.
