It’s a rip-off – households won’t see anything near $550 a year saving Media Release

Jul 14, 2014 - 8:07am

Last week’s admission by Virgin, Qantas, Woolworths and Coles they will have no savings to pass to consumers if the carbon tax is repealed is just the tip of the iceberg, with more than half of the much promised $550 saving likely to be a mirage, said The Climate Institute today. 

“The revelations by our major airlines and supermarkets that they have nothing to hand back to consumers after repeal are just the tip of the iceberg, more than half are beyond the reach of amendments being debated in the Senate this week,” said John Connor, CEO of The Climate Institute. 

“With grand claims of $550 saving per household likely to be a mirage, the Senate should set up an independent review so Australians and the new Senate has the facts behind such claims.” 

“This could be the great carbon consumer rip-off – and only the Senate can get the facts checked properly.”

“Prior to the carbon laws starting, Treasury estimated the price impacts if all the costs were passed through to consumers and this was the basis for tax and other relief funded by carbon permit revenue. Independent studies showed that compensation left 9 out of 10 households better off.”

“The list shows that all utilities – electricity, gas and water make up just half of the price impacts, the others in areas well beyond the reach of amendments being debated in the Senate.”

“Electricity generators saying they may pass back between $80 and $200 while gas prices are rising by much more as gas is now exported overseas, households could get as little as $80."

"It is simply misleading to use a list of potential price rises as a definite statement of price savings. The Senate struggles to craft an amendment which deal with just some of the direct impacts on less than half of the claimed $550 and the revelations from our supermarkets and airlines shows the benefits of repeal are limited but the loss of laws that are working is enormous."

“The Senate should take a breather from the confusion on this debate and have a review of the real price impacts of repeal as well as the implications for pollution. The Government’s own data shows from two years of experience the carbon laws that have worked reducing pollution in a growing economy with minimal price impacts as predicted.”

For more information
Kristina Stefanova | Communications Director, The Climate Institute | 02 8239 6299

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