Carbon tax models are propaganda: Vic oppn
14:33 AEST Tue Sep 20 2011
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Modelling
prepared for the Victorian government showing a carbon tax will strip
$1050 from individual incomes is defective propaganda, the opposition
says.
The carbon tax, which is being debated in federal
parliament, will rip $660 million out of Victoria's budget by 2015 and
lead to 35,000 fewer jobs being created than would have otherwise been
the case, the Deloitte Access Economics report has predicted.It also predicts typical incomes will be $1050 lower than if the tax was not introduced.
Opposition employment spokesman Tim Pallas says the report fails to factor in $9.2 billion of federal government compensation.
"That directly impacts upon household consumption," he told reporters in Melbourne on Tuesday.
"It will have a dramatic effect upon the way that the impacts upon jobs occur.
"To simply use a consultants' report that effectively was defective in its terms of reference by not looking at the compensatory arrangements really puts it into the position of being a piece of government propaganda.
"Ted Baillieu can't walk away from the fact that he has consistently supported the idea of a price on carbon."
Earlier, Mr Baillieu said households would be hit hard.
"This is going to have a very heavy impact," Mr Baillieu told Fairfax Radio.
"It's a very complex tax and a very complex impact.
The report predicts $660 million less flowing into the Victorian budget by 2015.
"The impact there is straightforward things like paying for the additional electricity prices for hospitals, for public transport, for education and for a variety of other aspects that come straight off the government's budget and the government's not compensated for that," Mr Baillieu said.
"It makes budgeting that much more difficult. We've got challenging times anyway and we have to confront the impact on the Victorian budget and by 2015 we'll be having to deal with these issues."
The report predicts particular regions will be hardest hit, including Gippsland, Bendigo and Barwon.
Mr Baillieu said the carbon tax would have a heavy impact on manufacturing. There were issues for the aluminium industry and it would increase uncertainty in a number of areas including the electricity industry.
Aluminium producer Alcoa has warned that Victoria's two smelters face a significant threat because of the soaring Australian dollar, high input costs and the carbon tax, The Australian newspaper reported on Tuesday.
"They have contractual arrangements and the government has contractual arrangements with them in regard to pricing and this is likely to have an impact," Mr Baillieu said.
"We want the Gillard government to deal with these issues."
© AAP 2011
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