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December 21, 2011

Federal Member for Gippsland Darren Chester says concerns over the financial viability of Latrobe Valley power stations will be heightened once the Gillard Labor Government’s carbon tax comes into effect.

Mr Chester said this week’s announcement that Loy Yang A had sought permission from the Australian Securities and Investment Commission to continue trading as it negotiates with the Federal Government over the cost impacts of the carbon tax had added to uncertainty in the region.

“The business community hates uncertainty and it’s another reason why the carbon tax should be abandoned,” Mr Chester said.

“At a time when power generators in the Latrobe Valley are already facing financial pressures, it is ridiculous for this government to place another burden in the form of a carbon tax.

“A new tax will undermine the viability of power generators and make it more difficult to attract investors in the future.

“I’m concerned that the Labor Party has no understanding of the risk to Victoria’s baseload electricity supply as it introduces a new tax at the worst possible time.”

Shadow Environment Minister Greg Hunt said the community was starting to see the real life implications of the Gillard-Labor Government’s carbon tax.

“Like all Labor policies, the government has failed to think through the negative consequences and costs,” Mr Hunt said.

“No matter which way Australians turn, they are having to put their hand in their pocket to cover the cost of this disastrous carbon tax.”

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