Alan Moran of the free market think tank the Institute of Public Affairs has recently echoed the Coalition’s highly dubious claim that the exodus in the manufacturing sector can be largely attributed to the carbon price and Renewable Energy Target.
Moran claims that:
Government delinquencies have caused energy price rises that have contributed to plant closures, including Point Henry aluminium, Ford, General Motors and Toyota.
Australia has the world’s cheapest coal and vast gas reserves. Yet government cost impositions in the past five years have resulted in electricity prices that are among the world’s highest.
We have moved from a superabundance of cheap gas to fears of domestic shortages.
Costs stemming from environmental measures are a key cause of this. They add one-third to the electricity price. The carbon tax is most prominent but other costs include the Renewable Energy Target and obligations on retailers to supply energysaving light bulbs and the like.
Even if the Abbott Government can repeal the carbon tax, energy users will continue to pay subsidies to windmills and rooftop solar.
We are halfway towards this goal, which will increase electricity costs by 40 per cent in the next six years.
Renewable Energy Target opposition is all egg and salami…
Alan Moran of the Institute of Public Affairs exaggerates the ‘cost’ of the Renewable Energy Target. If the Abbott government axes the RET there will be no noticeable reduction to power bills and Mr Moran will have egg on his face.
The RET makes up a salami slice of the power bill. It costs the average Australian just 70 cents a week. Yet collectively our investment has built an $18 billion industry, created 30,000 jobs and put downward pressure on electricity prices.
The RET is a sound investment and sound investments deliver returns. People opposed to the RET, such as Alan Moran, can’t see the forest for the trees.
The ABC’s fact checking unit have investigated the Renewable Energy Target. How does the Renewable Energy Target effect your bill? Find out here!
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