PM dumb-struck by 25,000 tonne CO2 kill switch on new investment
17th August, 2011
“FOR many businesses the carbon tax will stop expansion dead in its tracks and Julia Gillard is at a loss to explain or justify it,” Leader of The Nationals Warren Truss said today. The Prime Minister could not answer him on the detail of her carbon tax permits scheme when asked during Question Time.Mr Truss asked the Prime Minister:
‘Prime Minister, is it the case that a business that emits 24,999 tonnes of carbon dioxide a year does not have to purchase carbon permits, but if it emits one tonne more it will need to purchase over half a million dollars of permits?
‘Why would any business ever choose to expand in Australia?’
“Either the Prime Minister doesn’t understand the detail of how her carbon tax will apply to businesses or she simply cannot justify the unjustifiable,” Mr Truss observed. “Either way, it’s not good news for businesses hoping to one day grow their operations.
“The Prime Minister was at a loss to explain why a factory that emits 24,999 tonnes of CO2 will not have to buy a single permit, but if it expands production to emit just one extra tonne the business will be required to purchase over $500,000 of permits for all 25,000 tonnes.
“Highlighting the bureaucratic mess and injustice of the government’s scheme, businesses will be forced to cough up once they cross the 25,000 tonne of CO2 threshold, calculated from the first tonne of emissions they produce.
“How is that fair or reasonable?
“Clearly, the carbon tax for businesses in this position will be an investment and expansion killer. I recently visited a business in regional Australia facing precisely this dilemma.
“No company nearing this threshold would take on more staff with a view to boosting production. Effectively, their business will be stranded in limbo, facing ever-growing costs but unable to boost production to become more profitable, lest they get slugged.
“The Prime Minister should have known that detail when asked today. It’s supposed to be her policy. Perhaps she should ask Bob Brown to explain it to her.”
[ENDS]
