Consumers pay the price for Federal Labor uncertainty on a carbon price

July 12, 2010

Endless uncertainty about Federal Labor’s Emission Trading Scheme is driving up the cost of electricity and placing household budgets under increasing pressure, Shadow Minister for Consumer Affairs Luke Hartsuyker said today.

Mr Hartsuyker was commenting on a report for The Climate Institute which revealed the uncertainty surrounding what price Federal Labor will place on carbon is leading to higher electricity prices.

“Federal Labor has made a meal of their response to Climate Change and consumers will pay the price,” Mr Hartsuyker said.   “First they came up with a great big new tax with their Emissions Trading Scheme. Kevin Rudd backflipped on the ETS by delaying its introduction until after the Federal election.   Now Julia Gillard is refusing to name what price she will place on carbon. As a result energy suppliers are refusing to invest in new infrastructure. This is because they don’t know what price they will be charged to emit pollution.

“This is just another policy failure of the Federal Labor Government. They are playing with people’s lives with flip flops, indecision and focus group driven media releases.”

Mr Hartsuyker said higher power bills hurt all Australians.  “A carbon tax not only drives up household electricity costs but it also increases the cost of everything we buy.  High energy users such as butchers and bakers have no choice but to pass on increased costs and in the end we all pay for it.  Those hardest hit are pensioners and low income earners who have little capacity to reduce their power usage.

“Paying more for their electricity means that they have to go without other basic necessities.At the upcoming election Australians will have a choice. If they want the cost of living to rise they will vote for Federal Labor. If they want business certainty which will deliver cheaper electricity they will support the Coalition.”