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Business Council confirms massive cost of Rudd emissions policy.



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SENATOR

ELL ; :.

AIISTRALI I SENATOR FOR QUEENSLAND 21 August 2008 B2008/49

BUSINESS COUNCIL CONFIRMS MASSIVE

M COST OF RUDD EMISSIONS POLICY "Today's BOA study highlights the dangerous impact of Rudd's Emission Trading

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Scheme. It would be reckless in the extreme to impose this on the Australian economy,"said Senator Ron Boswell today. "The Business Council of Australia study found that:-

• Half the businesses will see their returns drop acceptable dro below table levels p • Some trade exposed emission intensive industries will close, others will wind back

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• There will be a large reduction in new investment that would otherwise have occurred• Australia will lower its emissions in large part by exporting them to other countries -we will simply import our growing needs rather than meet them locallyA. Australia will suffer considerable economic pain for no global environmental gain • The government's Green Paper compensation scheme is inadequate and containssignificant anomalies• The Green Paper approach will strongly limit future trade exposed emission intensiveinvestment• The electricity sector requires a near doubling of spend on new generation andR transmission lines to $4bn pa• Gas use for electricity must approximately triple, requiring significant development ofundeveloped and, as yet, undefined Bass Strait ReservesE • It is highly likely that brown and black coal electricity generation facilities will have tobe rapidly revalued and written down There is a severe risk of increased electricitysupply interruptions."L "Australia's economic comparative advantage is built on commodity based emissions intensive industries that are often greener than our overseas competitors. Damaging ourmajor industries and sending them offshore only leaves Australia worse off economicallyEand the world worse off environmentally."Senator Boswell also warned that Australia should be very careful about becomingpartners with New Zealand in an emissions scheme as recently canvassed by PrimeMinister Rudd.S "New Zealand, as I understand it, already has a carbon market relationship with Europe.If Australia joined up with New Zealand we could be prematurely brought into theEuropean market through arbitrage and we would be swamped by what happens therebecause it is so large and beyond our control."E ENDSMedia Contact — 073001 8150Media Enquiries — 07 3001 8150