The Prime Minister Mr Rudd’s revelation that one of the worst things in a financial crisis would be a new tax is now an own-goal endorsing the deficiencies of an Emissions Trading Scheme said Senator Barnaby Joyce, the Leader of the Nationals in the Senate.

“The ETS is for all intents and purposes a tax, it is an increment on the cost of goods that will serve as a price signal to dampen demand for those goods,” Senator Joyce said. “It will have a regressive effect on the economy.

“Mr Rudd told Parliament in October that his Labor Government had no plans to bring in other taxes and was committed to keeping the budget in surplus.

“Economists are now tipping an average annual budget deficit of at least $14 billion over the next four years and the Government’s own forecast is for tax receipts to drop by $115 billion over that period.”

Senator Joyce said that concerns held by the public in regards to climate change were commendable as they underpinned the basic philosophy to protect and sustain life. However, the Labor Government’s process to this purpose is completely flawed.

“What Mr Rudd has done by his own admission is brought about a tax that will put people out of work and by the most basic principles of economics will dampen economic activity,” Senator Joyce said. “At certain times this may be affordable but at this point in time it will exacerbate all the problems associated with a severe economic downturn.

“For once Mr Rudd has got it right, one of the most irresponsible things he can do now is introduce a new tax and that is why he should not do it.”