Business arrangement consummated

For a government that sometimes seems to find it hard to deliver coups for the state of New South Wales, the Iemma Government should be well chuffed with itself for managing to entice Richard Branson’s Virgin Blue to set up its base of operations in Sydney. Although one does wonder precisely what sorts of understandings were reached to bring in the deal, there is little doubt that this development is a boon for the state’s economy, which isn’t exactly barrelling along. The deal means more jobs for NSW, more tourist dollars spent in Sydney, and potentially lower airfares for some routes out of Sydney for Australian travelers.

A couple of questions nevertheless spring to mind:

1) What does the deal imply for NSW in relation to any future carbon emissions trading scheme between states? Has this been considered in the context of the deal that has been made?

2) Has any analysis been conducted regarding what the deal, if anything, means for inflation?Am I the only cynical one who thinks that neither of these questions were considered when the deal was reached?