Country Liberals Senator Nigel Scullion has warned that the Northern Territory will be hit harder than other areas by the carbon price Julia Gillard has announced she will introduce from July next year.

“Let’s not forget this is the carbon tax the Prime Minister said would never happen while she was leader. In fact the day before the election Ms Gillard categorically ruled out introducing a carbon tax,” Senator Scullion said.

“The Prime Minister’s climate change committee is seeking to include transport in the tax which will have massive ramifications for the Territory if adopted.

“Petrol and diesel prices are always more expensive in regional and rural Australia, and other case studies show that a price on carbon will lead to immediate and significant increases in the price of fuel.

In New Zealand the price of petrol has risen by more than 3 cents per litre on a $12.50 per tonne price on carbon, and diesel by almost 4 cents per litre. Australia’s price on carbon could be much higher.

“Higher fuel costs mean higher prices for everything Territorians buy. Our products will be more expensive and less competitive in markets in the cities and overseas. A carbon tax guarantees higher costs and fewer jobs in regional Australia,” Senator Scullion said.

“The Prime Minister declared that this would be the year of delivery, but instead what we are seeing is the year of delivering broken promises.

“Ms Gillard insists on slugging Australians with another tax at a time when they are already struggling with soaring power bills, interest rates and grocery bills, and yet these costs will not be shared by our international competitors because there is no global agreement on reducing emissions.

“The Coalition is deeply concerned about the way this tax is unfolding and if there is no way to stop it, at the very least we are calling on the Prime Minister to immediately rule out applying the carbon tax to fuel.”

Download media release:
Carbon tax will hit Territory hard 24.2.11.pdf