Leader of The Nationals Matt Canavan is warning Labor’s carbon tax, known as the safeguard mechanism, could lead to an enormous loss of jobs around Australia.
Senator Canavan said a research paper conducted by the Institute of Public Affairs (IPA) shows Australia would not only lose billions of dollars, but risk putting some of Australia’s biggest companies under threat too.
“Labor wants to go even further and reduce even more emissions with its carbon tax, or safeguards mechanism,” Senator Canavan said.
“IPA’s modelling shows what is required to meet the federal government’s nationwide emissions reduction target of between 62 and 70 per cent by 2035 from 2005 levels, to accelerate the decline in net emissions.
“IPA’s modelling, taking those wishes into account, shows the cost for Australian businesses would be between $21.9 billion and $33.1 billion at the bigger emissions reduction target.
“This is an extra cost, on top of the costs incurred before 2030, which will impact 228 of Australia’s biggest businesses. That’s thousands of jobs impacted, but also regional towns around Australia having their communities torn apart.
“Government policy is actually forcing a new tax onto Australian business, and putting industry at risk, all for their ideology, which is failing badly.
“We have sovereignty of our resources and we should be using them to create wealth, jobs and opportunity – not targeting our mining and manufacturing industries.”
Shadow Minister for Infrastructure and Transport Bridget McKenzie said Labor wants to reduce more carbon, down to 54.3 million tonnes under the Safeguard Mechanism, by 2035.
“Labor’s net zero agenda means the decline rate for businesses is going to increase from 4.9 per cent per year to 8 per cent per year,” Senator McKenzie said.
“The Safeguard Mechanism is an unnecessary and cumbersome burden on the Western Australian businesses that underwrite the nation’s prosperity – the miners, gas producers and manufacturers who earn our export income.
“The Institute of Public Affairs has done analysis presented to the Senate that found that 84 per cent of the businesses targeted by this scheme are in regional Australia. It proves once again that Net Zero does not mean net zero pain – and it is regional Australians who are made to carry it.
“And it is ultimately futile. Nothing this scheme does will change the global climate while our competitors expand production without restraint.
“The only certain outcomes are higher costs, deferred investment and lost jobs in Western Australia.”
