Carbon tax impact under scrutiny
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Australian Broadcasting Corporation
Broadcast: 28/06/2012
Reporter: Margot O'Neill
Lateline looks at what impact the carbon tax will have on Australia's energy consumption and whether it can reduce the nation's emissions.
Transcript
TONY JONES, PRESENTER: This Sunday a price on carbon pollution in Australia finally comes into effect. It's painful implementation has taken a heavy toll on federal leaders on both sides of politics.
But just what impact will the carbon tax have on Australia's energy consumption and how effective will be in reducing Australia's carbon emissions? In a moment we'll be joined by the Climate Change Minister Greg Combet.
First this preview from Margot O'Neill.
KEVIN RUDD, THEN OPPOSITION LEADER (2007): The great moral challenge of our generation.
MALCOLM TURNBULL, COALITION MP: We certainly need to put a price on carbon.
TONY ABBOTT, OPPOSITION LEADER: It is a cost-of-living killing, jobs destroying new tax.
JULIA GILLARD, PRIME MINISTER: This is the right thing to do for a clean energy future for our country.
MARGOT O'NEILL, REPORTER: The Government says it will launch Australia's clean energy future. The Opposition warns it will savage the economy. But what if the carbon tax doesn't change much at all?
ANDREW MACINTOSH, ANU: Pretty much all of the analysis shows that the next 10 to 20 years our energy and electricity system in particular are going to remain much the same as they are now.
MARGOT O'NEILL: So after all the sound and fury, do we end up with pretty much the same dependence on fossil fuels?
HUGH SADDLER, PITT & SHERRY CONSULTANTS: There'll be really very modest changes in the energy system as a whole over the next 20 years or more.
MARGOT O'NEILL: Here's Australia's current energy mix. Fossil fuels at 95 per cent, comprising coal: 39 per cent, gas: 22 per cent, petroleum: 35 per cent and then renewables: 5 per cent. In 2035 Government projections show fossil fuels: 91 per cent, comprising less coal at 21 per cent, more gas at 35 per cent, petroleum: 36 per cent and renewables increasing to 9 per cent.
ANDREW MACINTOSH: This is sort of one of the great ironies. So much blood over such a modest scheme.
MARGOT O'NEILL: So will the carbon tax achieve key goals? For instance, how much does it contribute to cutting Australia's greenhouse gas emissions? Will domestic carbon emissions will continue to grow for another 15 years to 2027, not dropping back down to current levels until 2045. To cut emissions by 5 per cent by 2020 in line with Australia's international obligation will mean buying overseas carbon credits.
ANDREW MACINTOSH: Most of the cuts that we will get out of this scheme are gonna come via reductions in emissions that occur overseas, so we'll be importing permits. We're also likely to see some offsets in Australia through land-based carbon things, so like tree planting and not cutting down trees.
MARGOT O'NEILL: And how much does the carbon tax spur major investment in renewable energy?
ANDREW MACINTOSH: If you were looking for a clean energy future in Australia, it's not going to come through this scheme in the short term. This is a scheme for your kids and your grandkids primarily.
MARGOT O'NEILL: These independent experts doubt that $23 a tonne will drive radical reform; even less so if the price drops to the Government-ordained floor price of $15.
TRISTAN EDIS, CLIMATE SPECTATOR: I don't think anyone could pretend that $15 is going to drive a dramatic change in the economy. We need something more substantial than that. But it certainly prevents us from doing something stupid like building another coal-fired power station.
ANDREW MACINTOSH: The point is to signal to the economy in the long term, so that's over the 20-to-50-year period, that the current dependence on fossil fuels can't go on and that we need to start making - slowly making choices to shift over to alternative technologies.
MARGOT O'NEILL: Although once momentum starts to build, change could occur faster.
TRISTAN EDIS: Business will innovate and they'll come up with cheaper ways of being able to supply energy that might surprise us. And so we end up with greater change that perhaps what people are initially expecting.
MARGOT O'NEILL: Margot O'Neill, Lateline.
Retailers weary of carbon tax
June 28, 2012
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Retailers say they are nervous about becoming the ‘‘meat in the sandwich’’ when the carbon tax is introduced.
The Australian Retailers Association (ARA) say stores are in a vulnerable position as the middle man between customers and the supply chain.
‘‘It’s plain to see retailers are the meat in the sandwich, caught between consumers’ inability to justify discretionary spending and supply chain manufacturing unable to remain price competitive,’’ ARA executive director Russell Zimmerman said.
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‘‘This is a dangerous position to be in and will cost jobs.’’
In a survey of the ARA’s members in 2011, 83 per cent said they expected consumers to spend less after the introduction of the carbon tax.
Fifty-six per cent said they would have to pass on their increased costs onto customers.
Retailers are also worried the government’s proposed household assistance packages will not be enough to cushion the effects on household budgets.
‘‘This will no doubt just be absorbed by the soaring cost of living,’’ said Mr Zimmerman.
Read more: http://www.theage.com.au/small-busin...#ixzz1zIyAxLd5
Print Email
Australian Broadcasting Corporation
Broadcast: 28/06/2012
Reporter: Margot O'Neill
Lateline looks at what impact the carbon tax will have on Australia's energy consumption and whether it can reduce the nation's emissions.
Transcript
TONY JONES, PRESENTER: This Sunday a price on carbon pollution in Australia finally comes into effect. It's painful implementation has taken a heavy toll on federal leaders on both sides of politics.
But just what impact will the carbon tax have on Australia's energy consumption and how effective will be in reducing Australia's carbon emissions? In a moment we'll be joined by the Climate Change Minister Greg Combet.
First this preview from Margot O'Neill.
KEVIN RUDD, THEN OPPOSITION LEADER (2007): The great moral challenge of our generation.
MALCOLM TURNBULL, COALITION MP: We certainly need to put a price on carbon.
TONY ABBOTT, OPPOSITION LEADER: It is a cost-of-living killing, jobs destroying new tax.
JULIA GILLARD, PRIME MINISTER: This is the right thing to do for a clean energy future for our country.
MARGOT O'NEILL, REPORTER: The Government says it will launch Australia's clean energy future. The Opposition warns it will savage the economy. But what if the carbon tax doesn't change much at all?
ANDREW MACINTOSH, ANU: Pretty much all of the analysis shows that the next 10 to 20 years our energy and electricity system in particular are going to remain much the same as they are now.
MARGOT O'NEILL: So after all the sound and fury, do we end up with pretty much the same dependence on fossil fuels?
HUGH SADDLER, PITT & SHERRY CONSULTANTS: There'll be really very modest changes in the energy system as a whole over the next 20 years or more.
MARGOT O'NEILL: Here's Australia's current energy mix. Fossil fuels at 95 per cent, comprising coal: 39 per cent, gas: 22 per cent, petroleum: 35 per cent and then renewables: 5 per cent. In 2035 Government projections show fossil fuels: 91 per cent, comprising less coal at 21 per cent, more gas at 35 per cent, petroleum: 36 per cent and renewables increasing to 9 per cent.
ANDREW MACINTOSH: This is sort of one of the great ironies. So much blood over such a modest scheme.
MARGOT O'NEILL: So will the carbon tax achieve key goals? For instance, how much does it contribute to cutting Australia's greenhouse gas emissions? Will domestic carbon emissions will continue to grow for another 15 years to 2027, not dropping back down to current levels until 2045. To cut emissions by 5 per cent by 2020 in line with Australia's international obligation will mean buying overseas carbon credits.
ANDREW MACINTOSH: Most of the cuts that we will get out of this scheme are gonna come via reductions in emissions that occur overseas, so we'll be importing permits. We're also likely to see some offsets in Australia through land-based carbon things, so like tree planting and not cutting down trees.
MARGOT O'NEILL: And how much does the carbon tax spur major investment in renewable energy?
ANDREW MACINTOSH: If you were looking for a clean energy future in Australia, it's not going to come through this scheme in the short term. This is a scheme for your kids and your grandkids primarily.
MARGOT O'NEILL: These independent experts doubt that $23 a tonne will drive radical reform; even less so if the price drops to the Government-ordained floor price of $15.
TRISTAN EDIS, CLIMATE SPECTATOR: I don't think anyone could pretend that $15 is going to drive a dramatic change in the economy. We need something more substantial than that. But it certainly prevents us from doing something stupid like building another coal-fired power station.
ANDREW MACINTOSH: The point is to signal to the economy in the long term, so that's over the 20-to-50-year period, that the current dependence on fossil fuels can't go on and that we need to start making - slowly making choices to shift over to alternative technologies.
MARGOT O'NEILL: Although once momentum starts to build, change could occur faster.
TRISTAN EDIS: Business will innovate and they'll come up with cheaper ways of being able to supply energy that might surprise us. And so we end up with greater change that perhaps what people are initially expecting.
MARGOT O'NEILL: Margot O'Neill, Lateline.
Retailers weary of carbon tax
June 28, 2012
Read later
Ads by Google
64GB iPad 3 - From $150saveonproducts.net/iPad3
Buy the iPad 3 with up to 55% off. Free Shipping throughout Australia!
Retailers say they are nervous about becoming the ‘‘meat in the sandwich’’ when the carbon tax is introduced.
The Australian Retailers Association (ARA) say stores are in a vulnerable position as the middle man between customers and the supply chain.
‘‘It’s plain to see retailers are the meat in the sandwich, caught between consumers’ inability to justify discretionary spending and supply chain manufacturing unable to remain price competitive,’’ ARA executive director Russell Zimmerman said.
Advertisement: Story continues below
‘‘This is a dangerous position to be in and will cost jobs.’’
In a survey of the ARA’s members in 2011, 83 per cent said they expected consumers to spend less after the introduction of the carbon tax.
Fifty-six per cent said they would have to pass on their increased costs onto customers.
Retailers are also worried the government’s proposed household assistance packages will not be enough to cushion the effects on household budgets.
‘‘This will no doubt just be absorbed by the soaring cost of living,’’ said Mr Zimmerman.
Read more: http://www.theage.com.au/small-busin...#ixzz1zIyAxLd5
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