Will Gillard scrap carbon tax if global agreement not reached

09/03/11

Julia Gillard must explain what will happen with her carbon tax in three to five years if there is no global agreement in relation to emissions trading.

“The prospect of a global agreement being reached during the carbon tax introductory period is zero,” Shadow Minister for Finance, Debt Reduction and Deregulation Andrew Robb said.

“If there is no sign of a global agreement after three to five years Julia Gillard must confirm whether or not she will scrap the tax and if not why not?

“If there is no global agreement Australia will be going it alone, putting huge taxes on industry which are not faced by our major competitors. Labor’s scheme will simply see our carbon shifted into someone else’s backyard.

“If Julia Gillard plans to continue with her carbon tax in the absence of a global agreement it confirms beyond doubt that this is nothing but a giant tax gouging exercise.

“Labor talks about certainty, but there is no certainty. There will be a carbon tax for three to five years with the rate hiked annually; beyond that, who knows.

“This tax represents a futile attack on our standard of living and economic prosperity for absolutely no environmental gain. It will see industries move off-shore, jobs lost and our emissions exported to countries with less efficient industrial practices than our own.

“If Julia Gillard wants to go down this path she should take it to an election to win a mandate from the people that she clearly does not currently have,” Mr Robb said.