DEBATE is raging over the likely effects of the federal government’s carbon tax in Melbourne’s west just days before the new system takes effect.
Under the scheme, businesses and organisations emitting more than 25,000 tonnes of carbon dioxide a year will have to buy a $23 permit for every tonne released.
That includes western suburbs companies such as Qenos, Mobil and Amcor.
The Gillard government is hoping a generous compensation package will deliver it a much-needed boost in public support after the carbon tax is introduced on Sunday.
Price increases are set to flow through to households and businesses, but Gellibrand MP Nicola Roxon says extra support and compensation will ease the transition.
Payments have begun to roll out to pensioners, students and self-funded retirees.
“All full and part-pensioners in Gellibrand will receive a lump sum payment of $250 for singles and $380 for couples combined,” Ms Roxon said.
An ongoing increase to fortnightly payments will begin next March.
Electricity prices are due to rise by up to 15per cent, but only about 8per cent of the rise is due to the carbon price, with the remainder to come from companies passing on other costs.
Opposition Leader Tony Abbott has promised to scrap the carbon tax if the Coalition wins the next election.
He used a recent visit to Melbourne’s west to raise fears of a wrecking ball going through the Australian economy.
Western suburbs Liberal MP Bernie Finn said a carbon price would deliver the western suburbs its worst recession since the 1930s.
“This so-called compensation is a dirty great bribe by a government that has lost its base and wants to get it back.
“I am not receiving a cent in compensation. Perhaps the Prime Minister has realised that there is very little chance that I will vote for her at the next election.”
