Free Trash of Freeport

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Renegade Economists Podcast 108

As broadcast on www.3CR.org.au 30/09/09.
Subscribe to the podcast.

Free Trash of Freeport: We finish off our climate friendly policy overview, then interview Nick Chesterfield (Manukoreri) and Nicholas Taylor (Outcrop) to discuss the immense wealth and destruction flowing from West Papua’s $40bn Freeport mine. Photo – Freeport’s tailings, thanks SkyTruth.

Key Articles:
Red River: The blacklisting of Rio Tinto:
Will Australia Allow Another Balibo at Freeport

Show Notes
Carbon Trading Controversies – speculative middlemen aka the bankers bonanza implicit in Australia’s Emissions Trading System

Contraction & Convergence – Aubrey Meyer. Also his book

Carbon Tax – James Hanson (NASA) supports

Tax Upstream

We propose to tax fuels as far upstream as practicable, i.e., at the point where possession of the carbon-bearing fuel passes from the “producer” (e.g., coal mine; oil wellhead or tanker; gas wellhead) to the immediate next entity in the supply chain (e.g., coal shipper or utility; oil refiner or importer; natural gas pipeline). Presumably, each such transfer will be codified in a contract, or at least a bill of lading, specifying the attributes of the fuel.

This will minimize the number of points in the economy at which the tax would be levied. It will also simplify tax treatment of potential downstream carbon control technologies such as CCS (coal capture and sequestration), as discussed below.

Carbon Variability Requires Taxing by Btu, not by Fuel Weight or Volume
The tax rates will be stated in dollars per million Btu of heat content for each fuel. A more familiar approach based on physical
quantities of fuel isn’t tenable, due to wide natural variations in carbon content within each fuel type. These variations are most stark for coal. A ton of lignite typically contains around 40% less carbon than a typical ton of bituminous coal, for example. To tax the two respective tons at the same dollar rate would be grossly unfair since combustion of the lignite ton releases 40% less carbon into the atmosphere than for the bituminous ton.

Freeport, West Papua
Caroline Lucas (MEP – Greens) West Papua speech – October 17th 2008
Just as they have never received a penny of the massive profits turned over by Freeport, whose Indonesian subsidiary last year paid the Indonesian government over 1.8 billion dollars in tax.

Genocide by Demographics
According to Dr Elmslie, highland Papuans who allegedly have gonorrhoea are being treated in UN-funded family planning clinics — but not for gonorrhoea. They are being injected instead with long-term contraceptive drugs. As Dr Elmslie notes, this goes some way to explaining why the 1.67 percent population growth rate for Melanesian Papuans in West Papua is so much lower in than over the 2.6 percent population growth rate for Melanesian Papuans over the border in Papua New Guinea (PNG). (Meanwhile, the growth rate for the non-Papuan population in West Papua is 10.5 percent.)

Music

Songs for West Papua – Kelly Newton-Wordsworth
War is not over – Kelly Newton-Wordsworth
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Climate Crescendo

Karl FitzgeraldCommentaryLeave a Comment

Creative Commons License photo credit: Pizza527

Renegade Economists Podcast 107

As broadcast on 3CR on Wed Sept 23, 2009. Subscribe here

Climate Crescendo: Karl whirs through climate issues from an economics perspective and finishes with Sharna Nolan from Skateistan.org. So so much more to discuss on this topic. Will we write a script one day and time it?

Show Notes
Albanese earned $1.5m in basic salary for 2007 BUT received a $1.3m cash bonus.

Taken from the Age’s Capital Gains – 0509090
45 william st
Becton – bought $33.3m late 2007
For sale at $60m now
= $27m profit in 24 months

Leaked document: Oz discouraged Pacific islands from tough emissions stance – www.crikey.com
Bernard Keane writes: re the Small Island States forum in August.

The Smaller Island States’ meeting is held prior to each Pacific Islands Forum, and is composed of states like the Cook Islands, Nauru, Niue, the Marshall Islands, Tuvalu, Palau and Kiribati, all of whom face severe or existential threats from the impact of climate change via rising sea levels and more extreme weather.

While it is standard for a communiqué to emerge from the SIS meeting, no communiqué was produced after the meeting prior to the Pacific Islands Forum meeting in Cairns. Instead, an anodyne press statement was issued by the PIF secretariat, which was controlled by Australia as Forum host.

The press statement referred to “deep concern by the serious and growing threat posed by climate change” but made no mention of emissions reduction targets.

Music

Skream – Autodub
David Shea – Art of Memory
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Fast Forward News #5

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David Pecotic

our resident newshound returns
Just ignore it and maybe it will go away …

“There are few institutional structures to achieve co-operation globally on the sort of scales now essential to avoid very serious consequences, warns lead author Dr Brian Walker of Australia’s CSIRO.”


The solution? Don’t Leave Anything To The ‘Experts’

But hope springs eternal: Michael Hudson will be in Australia shortly and is scheduled to address parliamentarians in Canberra on the 21st October. Maybe one of them will be listening …

Speaking of hope – a belated happy birthday to Henry George.

This is the ‘counter-cultural saint’ and all-round snappy dresser who got the modern Geonomic ball rolling: “Wealth, in itself, is a good, not an evil; but wealth concentrated in the hands of a few corrupts on one side and degrades on the other.”

Finally, yesterday was One Web Day, and in that same spirit, let’s recommit ourselves to the online commonwealth and protecting this rare commons from enclosure. Go to the One Web Day site and find out how to get involved. Read the manifesto, “A Call to Defense and Celebration of the Online Commonwealth — Common Values and Shared Duties on the Internet.” Go sign it!

Because (and I’m quoting from it here) “the people of the Internet are, collectively, the killer app.”

So – to share the long-overdue wealth:

Web 2.0:

Google Domestic Trends: tracking economic sectors
[Tracks 23 Google search traffic indexes specific sectors of the US economy, such as retail, auto and unemployment.]

What’s New – australia.gov.au
[Australian Government’s online portal has been revamped: the default search now doe so across all collections for all tiers of government; and the ‘Have Your Say’ section now includes links to: Public Consultations, Blogs, and Bright Ideas.]

ABS Toolbox
[The ‘Your ABS’ toolbox is an interactive widget that will allow the ABS Homepage to make it fast and easy for their customers (!?) to find key information and ABS products.]

Median house prices in Melbourne – June Quarter 2009 – Google Maps

Monthly airport traffic data for top ten airports: January 2008 to current
[Australian Policy Online points to a report which provides monthly updates of revenue passengers and aircraft movement data for scheduled operations at top ten airports in Australia and including the totals for all Australian airports. A resource rental resource? Airspace is also a valuable public asset …]

AFTS Public Submission Search
[A rough and ready searchable database of Australia’s Future Tax System (a.k.a Henry Tax Review) submissions as created by a member of the public as detailed over at the Government 2.0 Taskforce blog.]

National

My tax rules: the Ken Henry wayRich tax pickings in homes & The Australian home: a sacred site for tax policy?
[Now that we’re on the subject, Fairfax economic correspondent Peter Martin appears to have the inside scoop on the draft chapters of the final Henry Review report due in December and which looks set to surprise just about everyone: cheaper insurance, pay-as-you-drive road taxes policed by geosynchronous satellites, death duties, wealth taxes, and the withholding of superannuation until the age of 67 are touted as top contenders. There’s something for everyone, even supporters of Geonomics get a look-in: higher capital gains, resource rent taxes, and land tax are all on the table – though their all a bit on the tepid side. And much of it is also antithetical: retaining state stamp duties on conveyancing and land transactions as well as payroll tax, and pushing up Australia’s reliance on consumption tax.

What can be certain, however, is that it will argue to lower company tax rate to between 25 and 30 per cent. Henry is aiming for the stature of the 1975 Asprey tax review but at the moment looks like just more of the same. Yet there is clearly a need for it: especially as people in the top 20 per cent income bracket enjoy a tax break of about $8000 a year from the exemption of the family home from capital gains tax, about seven times more than the poorest 20 per cent, according to a Henry Review submission by the University of Sydney economist Judith Yates. Renters get about $1000.

Professor Yates’s paper also canvasses reintroducing death duties, and removing land tax exemptions from owner-occupied housing. The latest eBulletin from The Australia Institute notes further that the most expensive 15 per cent of houses actually account for half of the total value of all houses in Australia, which are worth in excess of $1 trillion.] Read More