June 23, 2011
Federal Treasurer Wayne Swan refused to provide any guarantees for the long-term future of the Latrobe Valley power generating industry during Parliamentary Question Time this week.
The Nationals Member Darren Chester questioned the Treasurer over the potential threat posed by the Gillard Labor Government’s ‘carbon tax’.
Mr Chester was highlighting recent comments from Australian Energy Market Commission Chairman John Pierce who in reference to Professor Ross Garnaut’s March report said ‘the paper does not fully consider the likely implications for retail competition and market structure of the development of a carbon price and associated policies’.
During Question Time, Mr Chester asked the Treasurer if he could guarantee that the carbon tax would not impact on energy security or force Latrobe Valley power stations to shutdown.
“I refer the Treasurer to the report of the Australian Energy Market Commission that warns a carbon dioxide tax will reduce the value of electricity generators’ assets and reduce their ability to raise capital. Will the Treasurer guarantee that the carbon dioxide tax will not lead to power disruptions or the forced shutdown of power stations such as those in the Latrobe Valley in my electorate?,” Mr Chester asked.
In his response, the Treasurer did not mention the Latrobe Valley, instead giving a vague response as to an industry assistance that has not been made public at this stage.
“We have said very clearly about the revenue which will be raised from a price on carbon that it will go to households but also to industry,” the Treasurer responded.
Mr Chester said the response was of little comfort to Latrobe Valley families.
“Our community doesn’t want a household assistance package, local families want the decency of a job,” he said.
“The Prime Minister misled voters before the election when she promised there would not be a carbon tax. It is a fundamental breach of trust with the Australian people. The Labor Party should finalise the details of its tax and then give voters an opportunity to decide with a fresh election.
“The Gillard Labor Government must be honest with Latrobe Valley families and explain how many jobs will be lost under its plans to introduce a tax which will do nothing to change the temperature of the globe.”