Gillard dodges extra compo question as study shines light on true impact of Carbon Tax

November 21, 2011

The true impact of Labor’s Carbon Tax has been exposed by a new study predicting power price rises of 30 per cent, Federal MP Luke Hartsuyker said today.

Mr Hartsuyker was commenting on a study by the Centre of International Economics which revealed Labor’s modelling on the Carbon Tax was flawed because it assumed other developed economies would place a price on carbon.

“Treasury’s modelling on the financial impact of the Carbon Tax is based on the US joining with Canada, Japan, India, Korea and China in an international carbon trading system by 2016,”Mr Hartsuyker said. “Yet in the real world none of these countries is remotely close to adopting such a scheme. President Obama made it clear in last week’s press conference the US would not be adopting a Carbon Tax or cap and trade scheme.

“The failure of these countries to price carbon will further drive up the cost of electricity in Australia. The Centre of International Economics says consumers and business will be slugged with increases of 30 per cent instead of the Government’s forecast of 10 per cent.

“This blows the cover on the Government’s fraudulent economic modelling. During Parliamentary Question Time today Julia Gillard refused to say whether those Australians who suffer electricity price rises of more than 10 per cent will be fully compensated.

“Labor’s Carbon Tax was never going to adequately compensate Australian families but this latest study highlights how deceptive the Government has been. Australians are not fools and they know when their political leaders are playing with the truth. Julia Gillard has no mandate to impose this tax on Australian families and all Australians are going to pay a high price for her deception.”