Claims mining will receive too much carbon compo

The Grattan Institute has claimed that the mining industry is receiving too much compensation under the carbon tax.

Tony Wood from the institute said the industry has built up a flimsy justification for the billions of dollars in assistance it will receive under the tax, the ABC’s AM program reported.

 “In the case of coal, the assistance is targeted at coal mines that have very high levels of emissions and may have trouble paying a carbon price for those emissions, our view is that you would be better off shifting to coal mines that don’t have those carbon emissions,” Wood explained.

The program stated that even if there were no compensation miners would be unlikely to shed jobs due to the carbon tax.

He went on to say that offering full compensation to the steel industry for the carbon tax is essentially protectionism.

To hear the full piece, click here

However, the Australian Coal Association (ACA) has hit back.

The Executive Director of the ACA, Ralph Hillman said the report released today by the Grattan Institute was not based on the detailed data that ACIL Tasman had access to when compiling their assessment of the impact of the tax on the black coal industry.

“The Grattan Institute based its estimate of the cost impact of a carbon tax on just one year of estimated coal emissions data.  The study also falls into to the trap of examining average cost impacts rather than the impacts on mine margins and on investment at the margin," Hillman said.

The tax will put at risk high-paying jobs in 18 existing mines in New South Wales and Queensland and reduce investment in new mines.

“The potential job losses from these mine closures could be as high as 4,700 with the flow on effect to mining related businesses widening the jobs hit to over 14,000.

“The ACA has maintained there is a better way to price carbon, firstly by introducing a phased-in auctioning of permits and at a sufficiently low level for Australia to make the transition to a low-carbon economy in the long term without destroying jobs in the short term." 

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