Find above an epic interview with Professor Ross Garnaut, aired on ABC’s The Business last night.
In the interview, Ross Garnaut argues that the Government should retain the carbon tax, which would ‘save’ the Budget some $6 billion next year and a little less thereafter, whilst being less distorting than most other forms of tax (not to mention reducing Australia’ carbon footprint).
Garnaut also reiterates the immense challenges facing the Budget as the population ages and the terms-of-trade declines, arguing that both reform to the tax and expenditure system are required. This requires better engagement with the community, which currently doesn’t understand the need for reform.
He also slams Australia’s politico-housing complex, which has distorted the economy and put upward pressure on interest rates and the dollar. Garnaut argues that requires reforms to negative gearing are required, along with implementation of macro-prudential controls on mortgage lending, amongst other things.
There is also some discussion on the adjustments facing China’s, which will obviously have important implications for Australia.
This is what a real policy “grown up” looks like.
