Article: Energy report backs congestion tax

[ozbob]

From the ABC News click here!

Energy report backs congestion tax

Energy report backs congestion tax

By Jennifer Macey

A report for the Federal Government on energy efficiency says the states and territories should be encouraged to implement congestion taxes.

The report makes several other recommendations, including setting a goal to improve energy efficiency by 30 per cent over the next decade, improving the efficiency of electricity suppliers and an aim to make cars 50 per cent more fuel efficient by 2050.

It is intended to make up a key part of the Government's efforts to reduce greenhouse gas emissions, and Climate Change Minister Greg Combet says some initiatives are underway.

These include new emissions standards for new power stations, new mandatory emissions standards for light vehicles and tax concessions for green buildings.

But some of the report's more controversial recommendations have been borrowed from the Henry tax review.

They include reforming the fringe benefit tax for leased vehicles so as not to reward kilometres travelled, and also encouraging states to introduce a congestion tax.

"It is important there be more input and consultation from stakeholders about the recommendations contained within, particularly with state governments," Mr Combet said.

But while energy efficiency is one policy that enjoys bipartisan support, Coalition environment spokesman Greg Hunt says he is opposed to a congestion tax.

"A congestion tax is very simply another way of raising revenue and again it is likely to hurt the lowest income members of society," he said.

The Greens have welcomed the report, but spokeswoman on climate change and energy Christine Milne says it lacks ambition.

"I think for a long time you've got advisory groups to government who don't actually spell out exactly what is needed because they try to second-guess the politics," Senator Milne said.

"What was needed here was a straight up and down report saying what is necessary and actually highlighting the huge opportunities that are there from energy efficiency.

"To an extent the report identifies the opportunities, but it doesn't have that extra step.

"The thing I am pleased to see there though is the key point that the introduction of an explicit price on carbon is the only way we can be confident of reducing greenhouse gas emissions [by] at least cost."

Switching over

The report has also received a warm response from environment groups and the Australian Council for Social Services, which says any effort to dampen electricity prices will help reduce energy hardship for low income earners.

But Australian Conservation Foundation spokesman Tony Mohr says energy efficiency is only one part of the mix.

"It's just one part of the climate change equation and we still need that price on carbon so that we actually change the way we produce energy and not just the way we use it," Mr Mohr said.

"So we'll need both - an energy efficiency policy to make sure we're using our energy smart, but also policy to put a price on pollution so we're switching over to clean forms of energy production."

Mr Combet says the report shows energy efficiency will complement an emissions trading scheme or carbon tax.

"Renewable energy and energy efficiency, as important contributions as they can make, need to be coupled with an approach to introduce a price on carbon to provide the incentive to reduce pollution levels," he said.

But the Coalition remains opposed to a carbon price and Mr Hunt says the report should not be a Trojan horse for increasing electricity prices.

"We want energy efficiency, but we will not support a doubling of electricity prices and we hope that a good program is not used as an excuse to also introduce a bad proposal, which is electricity price rises for mums and dads and pensioners," he said.

Prime Minister Julia Gillard says the report's recommendations will be considered as part of the Government's climate change policy.

[longboi]

The problem with Australian politics in general is that they seem to look at issues with tunnel vision. Congestion tax is good and I would support it there was such thing as competence among our ruling class. However, I can guarantee that if one was introduced, the State Govnernment wouldn't even consider the effects on PT and the need to improve PT to compensate.