Rather than creating a financial ‘windfall,’ the new amendments to the Carbon Pollution Reduction Scheme (CPRS) amount to little more than a crippling tax on the coal industry, according to the New South Wales Minerals Council.
As reported in MINING DAILY, the Federal Government announced Monday night that it had reached an agreement with the Opposition to double the coal industry’s CPRS compensation to $1.5 billion over five years.
This amendment was met with loud voices of opposition from the industry who said that the increased compensation will still leave the industry both severely out of pocket and out of jobs.
According to NSW Minerals Council general manager strategy and policy Sue-Ern Tan, the CPRS will succeed only as a tax that collects millions from coal companies.
“It is the first of its type anywhere in the world that still puts jobs at risk and it could force some coal mines in regional NSW to shut down prematurely for no environmental benefit,” she said.
“The CPRS deal is not a ‘windfall’ or a ‘sweetener’ as has been reported. It is an unfair tax grab that could really hurt regional NSW.”
Tan said that the CPRS in its current form is opposed my thousands in regional parts of the country, who she warns are likely to be heavily affected by its introduction.
“In the past few weeks, more than 10,000 people in regional NSW and Queensland have written to their local MPs through the www.cutemissionsnotjobs website to express their concerns,” she said.
“But this new CPRS deal still doesn’t address the risk to jobs in regional communities.
“The deal announced this week suggests our representatives may have been listening, but they don’t really understand the message.”