18 Oct, 2011 08:53 AM Bega District News
MEMBER for Bega Andrew Constance says the Federal Government’s carbon tax will hurt families and seniors, resulting in the loss of thousands of jobs and a force a sharp jump in power prices in NSW.
“Labor’s carbon tax will be a disaster for NSW families and seniors,” Mr Constance said.
“The NSW Liberals and Nationals have done everything possible to stand up for families and seniors but unfortunately Labor has chosen to side with the Greens to impose a great big new tax on everything.”
NSW Treasury analysis has found the carbon tax will cost at least 31,000 jobs and deliver a $3.7 billion annual hit to the state’s economy.
It will also force up electricity prices for NSW households by up to $498 a year.
Businesses will pay $927 to $4191 more a year, depending on usage.
“The Federal Government has betrayed families, seniors and small business by imposing this carbon tax after promising not to do so,” Mr Constance said.
“Labor’s carbon tax will result in the loss of more than 18,500 jobs in the Hunter region alone and 7000 for the Illawarra.
“This will affect the South Coast.”
Mr Constance said these regions in particular can’t afford to shed jobs.
“After 16 years of Labor’s economic mismanagement, the NSW economy is already struggling and my government is kick-starting it; the last thing this state needs is a big new tax to hamper growth,” he said.
“Power prices are expected to rise by at least 15 per cent under Labor’s carbon tax.
“The tax would also reduce the dividends from NSW electricity generators by about $45 million this financial year, rising to $290 million in 2014-15.
“The NSW Government will off-set the impact of Labor’s carbon tax by increasing mining royalties but ensure companies are no worse off.”
Three Questions for Mr Constance
At the recent carbon tax information session at St Johns Church in Bega, Mr Andrew Constance was very keen to avoid a debate. I think participants and audience showed great respect for his wishes.
Since that meeting however, Mr Constance has been quoted in an article in the Bega District News titled “Constance Slams Carbon Tax”. In that article, Mr Constance has made several statements that I feel need to be challenged.
The Frontier Economics report, commissioned by the O’Farrell government states that “the adverse affect of the carbon tax will be modest”. According to the report, the economy will continue to grow and jobs, incomes and standards of living will continue to rise.
Mr Constance says the carbon tax will result in the “loss of thousands of jobs”. He correctly refers to job losses in the Hunter and Illawarra, but I have questions about his comment that “NSW Treasury analysis has found the carbon tax will cost at least 31,000 jobs.”
The Frontier Economics report predicts jobs and productivity growth in nearly all regions in Australia apart from the Hunter and Illawarra.
If you take account of jobs growth in the renewable energy sector and billions of dollars in compensation for polluting industry (which the Frontier Economics report does not) then there will be 400,000 new jobs created by 2020 in NSW alone, according to federal treasury modelling.
Mr Constance says the carbon tax “will also force up electricity prices for NSW households by up to $498 a year” and that “Labor’s carbon tax will be a disaster for NSW families and seniors.”
Ben Phillips is the principal research fellow at the National Centre for Social and Economic Modelling at the University of Canberra. On ABC radio last week he was quoted as saying that the average Australian household will be $2.50 per week better off under the carbon tax after all costs, compensation and tax breaks were taken into account.
I have three questions for Mr Constance. How do you arrive at the “31,000 job loss” figure given that the modelling you quote describes a net increase in employment? Could you explain what you think the cost to households will be once compensation is taken into account? If you have a more cost effective solution to climate change, could you tell us what it is?
Mr Constance, I think you should reconsider your opposition to the carbon tax. Modelling commissioned by your government demonstrates that the proposed carbon tax will have a positive impact on jobs and output in SE NSW. The benefit is clearly spelt out on page 35 of the Frontier Economics report, which is available on the www.cleanenergyforeternity.net.au web site.
Matthew Nott