More Government flip-flops

At he same time as the Government is flip-flopping on biofuels, and flip-flopping on regional petrol taxes, they also are retreating from having the transport sector in the Emissions Trading Scheme.

Jeanette Fitzsimons is not impressed:

“We’re trying to get the best possible legislation through this term … I think there will be legislation before this election but the question is will it be even weaker than what we’ve got now.” Ms Fitzsimons said further backtracks on the trading scheme should see the Prime Minister awarded a “climate ditherers” award to replace the United Nations Champion of the Earth award she recently received.

I can understand the politics around a delay, but you have to ask will it be only for two years? If petrol prices are still high in 2011, will the transport sector be exempted or delayed further. And if you start doing that the whole ETS may collapse if one sector is left out.

If one was to deliver significant enough tax cuts, they would compensate for any increase in petrol prices. But the risk of delivering chewing gum tax cuts which wouldn’t even meet the increased cost of petrol was obviously too high.