Thirty three years ago, on this day, April 17th, 1993,
The Prime Minister, Paul Keating, and the Minister for Primary Industries and Energy, Simon Crean, have denied knowledge of alleged Treasury proposals for a $1.9 billion energy tax.
Mr Crean rejected reports in The Weekend Australian and The Age on Saturday [17 April] which suggested that a tax on the energy content or fuels and possibly carbon emissions, being discussed by Treasury and the Department of the Prime Minister and Cabinet, had drawn on studies by the Department of Primary Industries and Energy.
1993 Brough, J. 1993. Keating, Crean deny energy-tax proposal. Canberra Times, Monday 19 April, p.3.
The amount of carbon dioxide in the air was roughly 357ppm. As of 2026 it is 427ppm, but check here for daily measures.
The context was that the anti-greenhouse action forces had won famous victories in 1991 and 1992, watering down the National Greenhouse Response Strategy and the Ecologically Sustainable Development process to derisory levels. However, they knew that, because of international ratification of the United Nations Framework Convention on Climate Change, the battle would not be going away…
The Business Council of Australia and others were paying very close attention to what was happening in the United States under Bill Clinton and the BTU tax, and also what was happening and Europe, where carbon tax had been defeated there.
I don’t know who leaked what to force Keating and Crean into this public statement, but the obvious question is cui bono? And a leak like this, feeding a story to tame journalists (there is rarely another kind sadly) means that you get to fire a shot across the bows of the pro-tax crowd. But of course, suppressing fire, as anyone who’s been in a proper fire fight will tell you, doesn’t really work.
What I think we can learn from this is that there are always games, wheels within wheels, you name it. This is one of them. We learn that 33 years ago, the straightforward, surely uncontroversial proposition that you tax things that are harmful in order to discourage their use and to encourage the creation of alternatives, was beyond the pale (Keating really hated the greenies).
What happened next
Well, there was an environment minister called Ros Kelly. She had to resign. Her replacement was another guy who knew all about the issues, the late Graham Richardson, he had to resign, quit, I forget which. And then Senator John Faulkner came along… And in early 1994 was saying, “Yeah, we might be looking at a carbon tax.”
What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Please do comment on this post, unless you are a denialist, obvs.
See also
April 26, 1992 – Ros Kelly abjures a carbon tax
Also on this day:
April 17, 1981 – David Burns writes in New York Times about trouble ahead – All Our Yesterdays
April 17, 1993 – Paul Keating versus the idea of a carbon tax…
April 17, 2007 – UN Security Council finally discusses the most important security issue of all…