Carbon tax hammers NSW

THE carbon tax represents “all economic pain with no environmental gain” for New South Wales as the revenue taken from Australian businesses ticks past $500 million while the state’s black coal-fired power producers get no government assistance, the Minerals Council says.
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Lou Caruana

The design of the carbon tax compensation package will also see NSW residents pay more for their power, according to NSW Minerals Council chief executive Steve Galilee.

Victorian “gassy” brown coal fired power generators will receive almost all of the $1 billion in the first tranche of government transition assistance and are likely to get the lion’s share of the remaining $4.5 billion in the coming rounds.

“Today the carbon tax passes the half-billion dollar claw-back mark raising $11 million a day for 45.5 days. The effect has been to reduce the attractiveness of our critical industries for investment, such as the mining industry, without any progress being made in reducing global carbon emission levels,” Galilee said.

“The carbon tax is putting our mining industry at a comparative disadvantage at a time when the cost of capital is rising and commodity prices are falling.

“Mining in NSW does not operate within a vacuum; NSW coal miners compete for investment with Queensland and WA along with other potential investment destinations around the globe.”

NSW Treasury modelling conducted last year estimated the carbon tax will result in the loss of over 31,000 jobs across NSW including around 18,500 jobs in the Hunter region alone by 2020.

NSW residents would cop the full force of the government’s carbon tax, effectively paying more on their power bills than Victorians, Galilee said.

“Australia’s response to climate change must balance energy security, ongoing economic growth and international competitiveness with an actual reduction in global emissions. The carbon tax fails to do this,” he said.