MRC-forsight-No2-15-07-08

Issue 2, 15/07/08

Julian Leeser
Executive Director Menzies Research Centre

Your Support is Welcome

Make payments with PayPal - it's fast, free and secure!

Dear Reader,

Welcome to the second edition of Foresight. We have had a terrific response to our new website. We need your support to keep up the good work so keep those donations coming. We have also had a good response to our first Policy Forum and I wish the government would is attracting a range of interesting suggestions. New on our site this week is a speech I delivered to the Australian Liberal Students’ Federation Conference examining whether US style primaries might work in Australia. You can read the full speech here or tell us your view in our policy forum. In this week’s Foresight we profile a range of new policy ideas being pursued by political parties and governments that may be of interest to Australians. Later this week we will be launching our State Policy and Federalism conference programs so be sure to check back on our site for details and to register for these events.

Petrol Prices and Energy Security

George Osborne, the British Conservative Party’s Shadow Chancellor, has unveiled a new plan to soften the impact of future fuel price rises on families. His proposed “Fair Fuel Stabiliser” would see fuel duty rise whenever prices fall and fuel duty fall whenever prices rise. His proposal also takes into account the substantial royalties received by Britain from North Sea Oil production. Osborne argues this proposal would make family finances more stable, create greater national economic stability and greater certainty about carbon prices. He estimates that if the Fair Fuel Stabiliser had been in operation over the last year it would have saved the average British family £90 in fuel costs. Mr Osborne is calling for feedback on his plan. To read more about it click here.

President Bush announced a plan to help tackle rising fuel costs. The President wants to encourage greater oil production as a way of reducing the cost of fuel burden for American households. The President’s policy is also aimed at reducing American reliance on foreign oil sources To read a copy of the President’s policy click here.

John McCain announced his energy security policy which is designed to reduce American reliance on middle eastern oil reserves. McCain wants to see the development of alternative fuel technology like cellulosic ethanol. He has proposed a $300M prize for the commercial development of improved battery technology for plug in hybrid and fully electric cars. McCain also proposes a $5,000 tax credit for customers buying zero omissions cars. Click here to read his policy.

US Multinational taxation regime

The current U.S. system for taxing multinational companies has been developed in a patchwork fashion, resulting in a web of tax rules that is unlikely to promote maximum economic efficiency. The US corporate tax rate of 39% is the second highest in the OECD. The Treasury Secretary moots the change from a foreign tax credit system to a territorial taxation system in which the home country exempts all or part of the foreign earnings from home country taxation. Such a change may help make the US tax system more internationally competitive. The Treasury secretary also launched Approaches to Improve the Competitiveness of the U.S. Business Tax System for the 21st Century which examines American tax policy in a global context. Click here to read a statement by the US Treasury Secretary.

Childcare

The Canadian Universal Childcare benefit celebrated its second anniversary. Under the scheme the Canadian Government has been providing families with $100 per month—up to $1,200 a year—for each child under the age of six, to help cover the costs of whatever form of child care the parents choose. Everything from the provision of paid childcare to financial support for stay at home parents. The Canadian Government is also providing an additional $250 Million for additional childcare places and a 25 percent investment tax credit for businesses that create new child care spaces in the workplace. To read more about the Universal Childcare Plan click here.

Healthier Young People

The New Zealand Nationals leader John Key has announced a policy aimed at getting young New Zealanders fitter faster. One in three New Zealand children are overweight Schools are facing administrative difficulties in providing after school sports programs due to falling male teachers numbers, bureaucracy and changing teacher attitudes to running school sporting teams Rather than having school provided after school sport the National Plan encourages students to take part in external sports teams and clubs after school hours. Click here to read John Key’s speech.

Menzies Research Centre online

For more information about the Menzies Research Centre, please visit us at www.mrcltd.org.au

Privacy Statement
The Menzies Research Centre is committed to protecting your privacy. View our Privacy Statement.

Disclaimer
The views expressed in this publication are those of the author and not necessarily those of the Menzies Research Centre or the Liberal Party of Australia. Research and analysis produced by other organizations and reported in Foresight in no way implies the endorsement of the Menzies Research Centre or the Liberal Party of Australia. The Menzies Research Centre disclaims any liability for any statement made in this publication. The use of the materials or any information, in whole or in part, contained on this publication is your sole responsibility. The Menzies Research Centre Ltd disclaims any liability for any damages whatsoever including without limitation direct, indirect, incidental and/or consequential damages resulting from your use of materials and/or the information provided in this publication.

unsubscribe