NSW: Carbon scheme revenue should protect business - Iemma

AAP General News (Australia)
04-04-2008
NSW: Carbon scheme revenue should protect business - Iemma

SYDNEY, April 4 AAP - Revenue earned from a carbon emissions trading scheme must be
used to protect businesses, NSW Premier Morris Iemma says.

But any issue of compensation for businesses adversely affected by the implementation
of a scheme was the responsibility of the federal government, Mr Iemma said.

The premier's comments follow NSW Treasurer Michael Costa's speech last night to a
business group, where he said the cut in greenhouse gas emissions recommended by climate
change adviser Ross Garnaut would cost hundreds of billions of dollars.

Mr Costa said NSW Treasury modelling showed the 80 per cent cut by 2050 recommended
by Professor Garnaut would cost $430 billion and slash Australia's economy by four per
cent over the next 20 years.

The federal government will release its own economic modelling mid-year.

It has said it is aiming for a 60 per cent cut in emissions by 2050, which would cost
$280 billion.

Mr Costa also said if the federal government accepted Mr Garnaut's recommendation not
to compensate industries adversely affected by carbon trading, it would damage the global
perception that Australia was a country free of sovereign risk to investors, Fairfax reported
today.

"There is a way to establish a carbon trading scheme and the way to do it is to transition
those industries that will be affected," Mr Iemma told reporters.

"The treasurer was pointing out there are two ways to do it ... you do it by ensuring
you cut greenhouse gas emissions and you still have investments for jobs.

"And that's the point that he was making. Do it our way."

The cost of not taking action on greenhouse gases far outweighed the cost of taking
action, Mr Iemma said.

Total Environment Centre executive director Jeff Angel said Mr Costa was a known climate
change sceptic and called on him to release all the NSW modelling.

"He throws big figures around but the real impact over such a long period is very,
very small," he said.

"Significant economic and individual income growth continues and major new green industry
is created."

NSW Greens MP John Kaye said there was no reason to trust the figures because Mr Costa
had refused to reveal what the calculations were based on.

"A one year delay in doubling the economy (i.e. a marginal reduction in economic growth)
in order to avoid climate change would be a good investment in reducing the risk of devastating
consequences," Mr Kaye said.

"Treasurer Costa does not accept the scientific consensus on climate change.

"He should butt out of the debate until he finds something intelligent to say on the topic."

AAP eb/kd/wjf/af/de

KEYWORD: EMISSIONS LEAD

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