ONE of Australia’s biggest public policy mistakes in decades has been fittingly consigned to the dustbin with today’s repeal of the carbon tax legislation.

Queensland Resources Council Chief Executive Michael Roche said that with the net cost of the carbon tax to the Queensland resources sector approaching $700 million this financial year, its axing would come as welcome relief for mineral and energy exporters. 

"Repeal of the carbon tax is good news for the Queensland economy," Mr Roche said.

"The carbon tax was a massive double-fail.

"It failed to achieve its environmental objective of reducing greenhouse gas emissions while loading the Australian economy with costs over and above anything imposed on minerals and energy export competitors.

"Report after report found that energy-intensive industries were likely to shift out of Australia to countries without an onerous tax on carbon."

A Griffith University study for the US-based Institute for Energy Research released last September concluded that carbon leakage was one of the most important lessons learned from the introduction of Australia's carbon tax.

The report said: "The effect of a carbon tax on emissions-intensive, trade-exposed industries is similar to a tax on exports or a tax on import-competing industries. Domestic emissions in these industries may fall after a carbon tax is imposed, but that cannot be counted as an environmental gain if the ultimate effect is that emissions simply rise overseas. The net effect is a pure deadweight cost to the economy." (link to report below) 

Mr Roche said the resources sector had argued consistently that without global alignment in emissions management, the imposition of a broad and expensive domestic carbon price would damage the Australian economy without benefit to the environment.

"Fixing the carbon tax – as advocated by the federal opposition – is not just a question of the price. 

"Dropping the carbon tax and adopting Europe’s emissions trading system would require a massive design overhaul as the European scheme provides genuine protection for the international competitiveness of its trade-exposed industries. 

"Furthermore, and crucially for Queensland, it excludes fugitive emissions from coal mining. Australia’s carbon tax regime afforded no such protections."

Mr Roche said the Queensland resources sector supported a measured transition to a low-emissions economy, subject to major global emitters and Australia’s resource competitors moving in the same direction.

"An effective policy response to managing climate change requires a global agreement on greenhouse gas abatement including comparable emissions-reduction commitments from all major emitting nations, substantial global investment in low emissions technologies and mechanisms to encourage the lowest-cost abatement.

"The Abbott Government’s Direct Action model correctly targets abatement where it is achievable through the provision of direct incentives.

"This contrasts with the approach of the former carbon pricing scheme which was characterised by a blunt and punitive tax on a firm’s entire CO2 emissions footprint, irrespective of whether the firm had the capacity to reduce those emissions," he said.

www.qrc.org.au

ends

Resource industry employer group AMMA (Australian Mines and Metals Association), statement by Steve Knott, Chief Executive.

TODAY’S passing of the carbon tax repeal legislation is welcomed as the first of several critical measures required to put Australia back on a level playing field with our international competitors.

Australia has a strong track record as a leader on important social and environmental issues, however any program to reduce our emissions must be closely calibrated with international efforts to avoid damaging our globally exposed industries and living standards.

Repealing the carbon tax removes one of two ideologically driven, flawed taxes imposed by the former government that have added unnecessary costs and risk to investing and doing business in Australia.

The next step in restoring Australia’s global competitiveness should be repealing the Minerals Resources Rent Tax (MRRT).

We need to remove the impediments that stand in the way of further development of our resources sector and secured the associated employment opportunities and economic growth.

Following that, as a nation we need to get back in the business of long-term, sustainable workplace relations reform that will address deeper issues of productivity and competitiveness and bolster our reputation in the international marketplace.

www.amma.org.au

ends

THE Victoria Events Industry Council (VEIC) has welcomed the announcement of the inaugural Cadel Evans Great Ocean Road Race in the Geelong region.

“This exciting new event reinforces Victoria’s credentials as a global leader for sporting events and complements a rich calendar of activity already in place,” says VEIC Chief Executive Dianne Smith.

“The race will draw people to iconic, regional Victorian locations, which is consistent with VEIC's recommendations to grow the tourism and events sector.

“It will bring thousands of people to the route which includes Geelong, Evans’ home town of Barwon Heads, Thirteenth Beach, Torquay, Bells Beach, Moriac and finish on Geelong’s waterfront.”

Ms Smith’s comments come as cycling World Champion and Tour De France winner, Cadel Evans, joined Victorian Premier, the Hon. Dr Denis Napthine MP, today to announce the event in Geelong in 2015.

“Victoria will put this event on brilliantly!” says VEIC Chair Peter Jones.

“It will bring some of the world’s best cycling teams to Victoria and, with Cadel Evans' name, will certainly attract strong international media attention.”

The timing of the event ties into a strong summer of sport which includes South Australia’s Tour Down Under prior to the race and the ICC cricket world cup soon after.

“There will be significant flow-on benefits throughout the economy to hotels, restaurants and visitor attractions from the Victorian, interstate and international guests coming to enjoy the event and experience what our great state has to offer,” says Ms Smith.

*

Established in December 2006, the Victoria Events Industry Council (VEIC) is the peak policy council representing Victoria’s $1.4 billion event industry.

www.vecci.org.au

ends

THE Queensland Government is asking Queenslanders to nominate to host an event during 2014 Queensland Small Business Week.

The Queensland Government wants to position Queensland Small Business Week, from September 1-6, as a positive catalyst for business development on the annual business calendar.

Minister for Tourism, Major Events, Small Business and the Commonwealth Games Jann Stuckey said the Queensland Government was looking for as many government, industry and community groups to get involved by hosting an event, as a way of “celebrating the commitment, efforts and passion of the largest group of employers in the state”.

“Queensland Small Business Week is a chance to celebrate the contribution small business (people) make and remind Queenslanders of the importance of buying locally,” Ms Stuckey said.

“This government is unashamedly pro-small business and committed to growing a strong and prosperous small business sector, cutting red tape by 20 percent by 2018.”

The week features a comprehensive calendar of events and activities such as seminars, workshops, webinars and networking events.

The events are hosted by business, industry and community groups across the state, with numbers expected to exceed the 4500 direct attendees last year.

All business is invited to take part in the week, whether as an attendee or as an event host, Ms Stuckey said.

Each event is promoted through the Queensland Government’s online business and industry portal and social media, providing an opportunity for businesses to showcase to people throughout the state.

“The events are designed to help people learn how to start or grow a small business, gain new ideas and inspiration, network with other businesses, or gain a better understanding of the support available,” Ms Stuckey said.

The statistics show the importance of small business to the Queensland economy. The 403,000 small businesses in Queensland employ about one million people and account for close to 95 percent of all Queensland business.

Organisations can nominate to host an event visit the 2014 Queensland Small Business Week through the website.

www.business.qld.gov.au/smallbusinessweek

ends