New carbon tax sting in EU deal
29th August, 2012
“YESTERDAY’S changes prove yet again that Labor’s carbon tax is a cruel shambles,” Leader of The Nationals Warren Truss warned today. “It cannot be fixed. It must be axed.“With each new backflip Julia Gillard proves how chaotic and untrustworthy her government is. When a delighted Christine Milne greets the media, you know it’s not good news for Australian businesses or families. Yesterday she was over the moon.
“The Greens have only agreed to remove the $15 per tonne carbon tax floor price because they believe the EU price will go up and up – meaning Australian businesses and families will pay more and more.
“Less than two months into Julia Gillard’s carbon tax regime, Labor is already shuffling the deckchairs and compounding the uncertainty that has engulfed this country and shattered the confidence of businesses and families alike.
“But, amid the confusion, comes a new whack for companies they never saw coming and which will follow though to slug Australian households.
“Dumping the $15 per tonne floor price and hitching its wagon to the European Union’s scheme is a con, Labor and the Greens have shifted the goalposts to impose a more expensive carbon credits scheme.
“Until now, Australian companies could buy 50% of their carbon liabilities under the EU’s Kyoto-based Certified Emission Reduction units – currently $A3.50 per tonne. Now that door is slammed shut. Australian companies are blocked from this cheapest option, restricted to just one-eighth (12.5%) of their permits being allowed from the EU CER.
“So our companies are locked into the highest costs in the world for three years and, come 2015, if they buy EU units they must buy the bulk from the high cost end of the spectrum. While currently selling at $A9.80 per tonne, by 2015 Treasury projects that price will be $A30 per tonne… and the Greens’ are gleefully hoping for $A50 per tonne.
“It is nonsense for Labor to claim Australia is joining the EU scheme. The 500 million Europeans have been paying, on average, $1 each under their token carbon scheme. Australia’s carbon tax is already reaping $400 per head.
“In fact, the first three months of the carbon tax will rake in more money for the Gillard government than the Europeans have raised in six years under their scheme. If Labor wants to ‘join’ the EU scheme they should ‘join’ the Australian scheme to their rules.
“The carbon tax is disproportionate and destructive… on top of being dishonest.
“Australians are already seeing their electricity bills going through the roof, making a mockery of the Prime Minister’s promise that the carbon tax will only add 10% to power charges.
“The bad news for families dealing with higher costs will likely get worse under the EU deal announced yesterday.
“Adding to the confusion and chaos, in a bizarre twist New Zealand recently introduced legislation to enable its emitters to continue buying the EU’s CERs for up to 100% of their emissions and to do so indefinitely.
“But the Gillard government is saying it is now keen to link our scheme with the Kiwis, who are clearly headed in exactly the opposite direction. It’s another Labor mess that Australians will have to pay for.”
[ENDS]
