Industry Concerned at NT Government Response to Carbon Tax

The Minerals Council of Australia – NT Division today outlined its concern at the stance taken by the Northern Territory Government in its support of the carbon tax while the government itself was still struggling to come to terms with the impact of the tax on the Territory economy.

The Executive Director, Minerals Council of Australia – NT Division, Mr Peter Stewart, said that the Government had publicly come out in support of the tax stating that it would be good for the Territory, while behind the scenes it was unable to assess the full impacts of the tax on the Territory.

Mr Stewart said that a business forum held on Thursday evening highlighted that the government was struggling to come to terms with the impacts of the tax on the Territory economy.

“We’re concerned that the numbers presented to business and industry in support of the tax didn’t take into consideration impacts on the local economy. Modelling assumed a ‘business as usual’ approach that ignored the impact the tax would have on industry competitiveness in a global market, and a growing lack of investor confidence”, he said.

In May the Territory Parliament passed a motion opposing the tax until such time as global consensus had been reached on a worldwide carbon emissions reduction plan.

“Business and industry is very concerned at the direction the government is now taking on this issue. While we all recognise that climate change needs to be addressed, the economic impact on the Territory given its remoteness, sparse population and heavy dependency on diesel fuel has been underestimated. Without understanding how this will affect business and industry, the Territory Government is telling us all is well based on modelling from Canberra” he said.

“Clearly this Government doesn’t understand that a new tax on Territory business and industry that isn’t imposed on our trading partners puts us at a disadvantage. All business, including local businesses, will be forced to pass on the cost of the tax to their customers, and this will erode any government compensation paid to households."

Mr Stewart called for the Chief Minister to sit down with Territory business and industry groups to understand their legitimate concerns and in the interests of all Territorians take the issues to Canberra.

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