Carbon Tax a catastrophe for NSW

10/07/11

The Hon Barry O’Farrell MP
Premier of NSW

NSW Premier Barry O’Farrell today said the Federal Government’s carbon tax would cost thousands of jobs and hurt NSW families.

“This is carbon catastrophe for NSW,” Mr O’Farrell said.

“It will hit every family in NSW in the pocket or purse through everyday price increases while the impact of the carbon tax on household electricity and gas prices will make recent increases look like petty cash.

“The carbon tax will hit areas which can least afford job losses like the Hunter and Illawarra.

“As the continued owner of Australia’s largest power generators NSW is particularly vulnerable to the impacts of a carbon tax - this will have a significant, negative impact on the State’s financial position.

“It will directly hit our electricity industry and this will undoubtedly result in increased electricity prices for households and businesses and is likely to result in reduced dividends - that means less funds for frontline services and infrastructure for the people of NSW.

“The compensation package will not be enough to make up for the hurt this will cause NSW families.

“It is a carbon con package which may offer some short term relief – but it will not overcome the damage this tax will do to our State.

“I have asked the NSW Treasury to do a full review of the package to determine the impact on NSW.

“But you don’t have to undertake a study to know that this tax is a nightmare for the people of NSW and the NSW Government will continue to urge the Federal Government to ditch it.”