The chairman of a New South Wales coal mining company says the resources industry should give the federal government a chance to explain all the details of the proposed carbon tax before taking an hasty action against it.
In an unprecedented move, Gloucester Coal chairman James McKenzie has voiced his support of the proposed tax, The Australian reports.
He said it was premature of the industry to predict how the tax would affect operations, three days after the Australian Coal Association (ACA) claimed eight coal mines could be forced to close within three years of the tax’s introduction.
”We haven’t seen the final form in which this is going to work, so having definitive statements on the effect this is going to have on the coal industry – or any other particular sector of the Australian economy – is a bit too early,” he said.
”Let’s see what the final form is.”
The ACA’s predictions were based on a modelling by ACIL Tasman, which indicated Australia would lose about $22 billion in coal sales, but McKenzie said it is foolish to think the world’s economy would not face carbon constraints.
McKenzie praised former opposition leader Malcolm Turnbull’s efforts to introduce an emissions trading scheme and said Kevin Rudd and Julia Gillard had made theie best efforts to “address the issue”.