Labor’s plan to introduce a new electricity tax is just another attack on business.
Mr Shorten’s plan is to have a target of a 45 per cent reduction in CO2 emissions on 2005 levels by 2030.
Labor’s own modelling, when it was in government, revealed that for a similar target the economy would suffer a $633 billion hit to GDP out to 2030.
To reach Labor’s target wholesale electricity prices would need to be 78 per cent higher in 2030.
Under the modelling Australia’s GDP would be 2.6 per cent lower in 2030 and real wages growth would be around six per cent lower.
Even Labor acknowledges the damage that would be wrought in the regions.
Mark Butler on RN Breakfast on 27 April, reeled off the regions that would be hurt most by the huge impost: “regions that are really in the front line of some of these transitions…in the La Trobe Valley, the Illawarra, the Hunter Valley, the Collie River Valley…”
The CFMEU’s Tony Maher wrote to Labor MPs in May 2015 warning them of the damage that would be done to the economy and jobs: “…an increased Renewable Energy Target of 50 percent by 2030 will increase the cost of electricity for manufacturing and ordinary households while being a poor tool to reduce Australia’s overall warming emissions.”
As to the cost to households Mr Butler was asked eight times on Neil Mitchell’s 3AW programme on 27 April whether their proposal would drive up household bills and each time he refused to answer.
Mr Shorten’s war on business with his savage tax increases, massive spending and bigger deficits coupled with his electricity tax would be a hammer blow for the economy.
It is a direct assault on growth and the jobs that go with it.