Friday, October 10, 2008

Govt's emissions scheme flawed, says OECD

ABC News Online, Posted 10 hours 52 minutes ago 

Updated 10 hours 48 minutes ago

The Organisation for Economic Cooperation and Development (OECD) has warned the Federal Government there are flaws in its plans for a greenhouse reduction scheme.

The OECD's report on Australia warns the Government that its plan to fully offset higher fuel prices caused by an emissions trading scheme is counterproductive.

It also argues that subsidising heavy vehicles, fishing and farm fuel energy costs is a disincentive to improving energy efficiency.

And it says to avoid higher greenhouse abatement costs, Australia should not let its emissions fall too rapidly at first.

The OECD is also calling on Australia to charge more for its natural resources like coal.

It says higher charges for natural resources like coal are justified on efficiency and equity grounds and the extra money could go on reducing other taxes.

It also suggests raising the GST, but not by how much and says the extra revenue could reduce direct taxes on workers.

The OECD focuses on ways to boost the labour force and says people should not be able to take their superannuation until they are 65, in line with the age pension.

It also encourages the Government to boost means-tested assistance for university students to remove some of the barriers for those from disadvantaged backgrounds.

It also argues that the $2.5 billion car industry plan might not be the best use of that money, given there is near full employment.

No comments: