Senator Fiona Nash

Labor’s carbon tax compo plan not credible

The Labor-Greens government must explain how it can adequately compensate families from increased costs when the carbon tax moves to an emissions trading scheme.

If based on the recommended starting price of $26 a tonne, a carbon tax will slug Australian families with higher power bills of up to 25 per cent, higher grocery costs, and add six and a half cents to a litre of petrol for starters.

It appears the carbon tax will then be transitioned to an Emissions Trading Scheme (ETS) in mid 2015.

“The government’s expected to detail its compensation package for a carbon tax within days. Not only is it yet to reveal the extent a carbon tax will impact on living costs, it’s yet to explain how it intends to compensate families under an ETS,” Senator Nash said.

“There will be no set price under an ETS, rather a fluctuating one based on trading activity. The government will have no control over the price so how can it ensure families and pensioners will be adequately compensated?”

Senator Nash also questions the legitimacy of the government’s claims that compensation will be permanent, based on its track record.

“The fact is that this government is addicted to spending. Just recently it’s been caught out trying to raise its borrowing levels to $250 billion. It won’t be long before the government raids the carbon tax revenue to fund its spendathon leaving less to compensate families,” she said.

Senator Nash said the carbon tax legislation is almost certain to be passed in parliament with the support of the Greens, who will hold the balance of power in the senate from tomorrow.

“Bob Brown confirmed yesterday the Greens are committed to cuts in emissions of up to 40 per cent. With the Greens running the government, the carbon price is sure to be increased,” she said.

“Prime Minister Gillard’s compensation package is already starting to unravel.

“Australia emits just 1.4 per cent of the global emissions. And so all this financial pain inflicted on the Australian people for what? Nothing. A carbon tax won’t make the slightest bit of difference to the climate.”