Carbon price to tax mining

The Queensland Resources Council is calling for the Government to take a transitional approach to a carbon tax.

The Queensland Resources Council (QRC) is calling for the Government to take a transitional approach to a carbon tax.

It raised concerns that an uncompetitive CPRS style carbon price regime would hit the resources sector particularly hard.

“It’s not too late for the federal government to embrace a better way – one that safeguards our (resources sector’s) global competitiveness,” QRC head Michael Roche said.

He urged the Government to follow Europe’s example and take a transitional approach to carbon pricing for emissions intensive industries that compete on a global scale.

Currently, the European Union (EU) emissions trading system will, from 2013, extend up to 100% free allowances to 73% of EU exports until 2020, to reduce the costs for industries that are exposed to heavy competition from outside of the union.

“At the top of that list are Europe’s mining, minerals processing and metals refining industries,” Roche added.

The QRC also called for the QLD Government to ensure the importance of safeguarding trade exposed industries is recognised.

“The Premier said recently that her carbon price ‘wish list’ included compensation for trade-exposed industries that was at least as favourable as under the CPRS,” Roche stated.

“What the Premier needs to tell the Prime Minister that a CPRS-style approach to compensation is simply inadequate.”

He went on to say that under a CPRS style package coal mining would be hit by carbon costs of $18 billion by 2020.

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