Carbon tax won’t hurt mining: Gillard

The Gillard Government says false claims about the carbon tax's impact on the mining industry will be exposed when the policy comes into force this weekend.

In Question Time yesterday Prime Minister Julia Gillard said Australians could judge for themselves on July 1 whether the mining industry would suffer from the tax.

"They will be able to assess, has the coal industry been brought to and end?" she said.

"Is no-one working in coal any more? Is there no more investment in coal?"

"Or will we see coal mines continue to work and our coal industry continue to expand."

Treasurer Wayne Swan said a recent report by the Bureau of Resources and Energy Economics, that forecast record resources earnings next year and an 11 per cent increase in coal exports, was proof the mining industry had a strong future under the carbon tax.

"All of this does deal a serious blow to the scare campaign of the Opposition," he said.

Swan also took aim at Coalition leader Tony Abbott's ties with the mining industry and said Abbott wanted to scrap carbon pricing in order to give a "tax cut to his mate Clive Palmer".

Abbott maintained the carbon tax would lead to price rises for businesses and ordinary Australians, and said Gillard had "shredded her credibility" and "broke her word" by introducing the tax.

"We had her word that the carbon tax would never happen," he said.

"That's why the Australian people are so angry about this tax. They're angry about it because they haven’t just been injured by this tax they've been insulted."

Image: The Fifth Estate

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