Economic outlook dashes big polluters’ hopes for more CPRS compo
Date: 2-Nov-2009
The economic outlook released today by the Treasury shows the Federal Budget simply cannot afford to give any further emissions trading compensation to big polluting companies, the Australian Conservation Foundation said.
The economic outlook has revised the projected revenue from the Carbon Pollution Reduction Scheme down from a $208 million positive over the forward estimates to a $1.2 billion negative.
The CPRS is projected to be $2.5 billion in the red by 2019–20, even without the Opposition’s amendments.
“The big polluters’ claims for more compensation, through the Opposition’s proposed amendments to the Carbon Pollution Reduction Scheme, cannot be justified in light of today’s economic outlook,” said ACF executive director Don Henry.
“The emissions trading scheme won’t be environmentally or economically effective if it is billions of dollars in the red because of excessive handouts to big polluters.
“The booming minerals sector is contributing to today’s stronger than anticipated economic outlook, pushing the Australian dollar up and reducing the amount of money available under the CPRS, yet this very same sector has its hand out for billions more through the Opposition’s proposed amendments.
“The projections for stronger growth and lower unemployment mean it is time for the Government to drop the ‘global recession buffer’, announced in May, and spend this money on climate change solutions.”
Removing the ‘global recession buffer’ would save around $1 billion over the first five full years of the scheme.
“Taking a strengthened and passed emissions trading scheme to the international negotiations in Copenhagen in December will enhance Australia’s ability to push for a strong global agreement,” Mr Henry said. “Taking a weakened one will not.”