The man who has managed Australia’s multi-billion dollar Future Fund for six years has delivered a stinging broadside to the Government’s carbon pricing scheme, calling it “the worst piece of economic reform” he has ever seen. Mr David Murray has previously said there is no link between CO2 and global warming. The carbon pricing scheme will come into force on 1 July and will charge the country’s biggest 500 companies A$23 for each tonne of carbon they produce. Read More

By chief political correspondent Emma Griffiths ABC News (30 March 2012):

The man who has managed the Australia’s multi-billion dollar Future Fund for six years has delivered a stinging broadside to the Government’s carbon pricing scheme, calling it “the worst piece of economic reform” he has ever seen. David Murray ends his term as chairman of the fund’s board on Monday.

The former Commonwealth Bank CEO has this morning told Radio National that the carbon tax is “very bad” for the Australian economy.

“If you want me to tell you my view, it is the worst piece of economic reform I have ever seen in my life in this country,” he said.

“The consequence of introducing that tax at that level in Australia today is very, very bad for this economy, particularly in terms of its international competitiveness.

“It raises costs further within Australia, it reduces our competitiveness for export of energy-related commodities, and it therefore renders us less competitive in the future.”

Mr Murray has previously said there is no link between carbon dioxide and global warming.

The carbon pricing scheme will come into force on July 1 and will charge the country’s biggest 500 companies $23 for each tonne of carbon they produce.

After three years that fixed amount will give way to a price determined by the market.

Treasurer Wayne Swan says the carbon pricing scheme is “world’s best practice”.

“Mr Murray is a well-known opponent of the science of climate change,” he told ABC News 24.

“I just reject what Mr Murray has had to say about this fundamental economic reform which goes to the core of our future economic prosperity.

“Big reforms like this are tough reforms, they’re never easy, and you will get vested interests and people like Mr Murray out there opposing them.”

“It’s not a surprise to me that Mr Murray might oppose a policy of this government.”

It is not the first time Mr Murray has criticised government policy.

He has previously revealed he was not in favour of the mining tax – an opinion he restated this morning.

“It was very clumsily introduced, it was very clumsily designed and the timing at the top of the terms of trade was not a good timing,” he said.

He has also been critical of the Government’s attack on big banks, particularly over raising interest rates.

Mr Murray says the banks have an important role in the economy.

“By jawboning their interest rates down when the international cost of funds and the domestic cost of funds has been behaving the way it is, is to render the banks less able to perform their very important role,” he said.

Mr Murray would not give his view of the Government’s ability to manage the economy overall.

The subject of Mr Murray’s replacement recently caused a furore when the government overlooked the board’s choice of former treasurer Peter Costello, appointing chairman of the Australian Securities Exchange David Gonski instead.

Source: www.abc.net.au