Too little, too late - Overdue Energy White Paper can't erase Carbon Tax and MRRT damage

13/12/11

Labor’s long overdue draft Energy White Paper will be virtually meaningless given it comes too late to have any impact on the Gillard Government’s two most destructive policies for the sector – the carbon tax and the Minerals Resource Rent Tax (MRRT).

Shadow Minister for Energy and Resources Ian Macfarlane said today’s release of the draft Energy White Paper comes more than two years after the crucial document should have been delivered.

“The energy and resource sector continues to be one of the most significant parts of our economy, accounting for billions of dollars in revenue and tens of thousands of direct and indirect jobs,” Mr Macfarlane said.

“Yet the industry has been forced to wait more than two years longer than it should for this critical policy document. All the while it has been forced to deal with the repeated attacks from a Government that sees the energy and resources sector as little more than a cash cow to cover its budget black holes.

“While the Gillard Government has left a policy vacuum for the energy and resources sector, it has rammed through the Parliament the carbon tax – which will force up power prices and make the Australian coal sector less competitive – and the MRRT – which has damaged Australia’s sovereign risk profile.

“It begs the question as to how serious the Gillard Government is about putting in place a stable policy footing for the energy and resource sector, when its two most significant policies aren’t up for negotiation.

“The last four years of the Rudd/Gillard Labor Governments have delivered disastrous policy hits for energy and resources companies, ranging from the $2.5 billion condensate tax grab, the carbon tax and the resources tax under its various guises – each of which has given investors reason to rethink their Australian investments.

“During that time the Labor Government has repeatedly failed to deliver the Energy White Paper which was due for release in 2009 under the normal five-yearly cycle.  The last White Paper was released in 2004 under the Howard Government.

“Even after all the Government’s dithering and excuse-making, the energy and resources sector has even more policy uncertainty ahead given that today’s release is a draft document only.

“The Gillard Government has an appalling record on industry consultation.  This time it must ensure that it offers more than just lip service to the many contributors to the energy and resources sector who will be affected by this document. 

“The Coalition will carefully scrutinise the Energy White Paper and will hold the Gillard Government to account in the new Parliamentary year.”