Costa's power sell-off undermines carbon trading scheme

Commenting on a story on page 1 of today's Sydney Morning Herald, Dr Kaye said: "Federal Climate Change Minister Senator Penny Wong made it clear she is already under intense pressure to issue free permits to the energy sector.
 
"The NSW government has joined forces with the greenhouse mafia to have coal-fired generators sheltered from the costs of carbon trading.
 
"If they don't get their way, the billions of dollars of annual costs to purchase permits to cover the 57 million tonnes of CO2 emitted by NSW's large power stations will make them much less profitable to potential purchasers.
 
"The Iemma government has driven the Labor party into a dead end. Either the electricity sector is exposed to the full costs of the emissions trading scheme or Michael Costa can privatise the industry. It's one or the other but definitely not both.
 
"Exempting power stations which produce 35 percent of the state's emissions would completely destroy the integrity of the carbon trading scheme.
 
"Professor Ross Garnaut's February Interim Report for the Rudd government's Climate Change Review was very clear that the scheme must include auctioning of permits for the energy sector.
 
"He emphatically dismissed industry arguments for protection.
 
"Michael Costa is already losing the privatisation debate in the face of growing opposition from the community, the union movement and the ALP membership.
 
"Now he has to take on Professor Garnaut to undermine the carbon trading scheme.
 
"It's time for NSW Premier Morris Iemma to bring his Treasurer into line and let Senator Wong do her job," said Dr Kaye.
 
 
For more information: John Kaye 0407 195 455