The federal government’s proposed carbon tax “will harm every sector of the economy” and could pose a real threat to Australian superannuation growth, according to opposition treasury spokesman Joe Hockey.
In an interview with Investor Weekly, Hockey said that as the carbon tax became a cost burden to some of Australia’s most successful companies, investors could see the damage in their superannuation portfolios.
“We’ve already seen the announcement of the carbon tax impact on the profit forecasts of our major companies, which will in turn impact on returns to investors,” he said.
“Australians have every right to question whether Labor’s carbon tax will reduce returns on their superannuation investments.
“Again Labor has failed to fully think through all the consequences of this damaging carbon tax plan.”
A day after Prime Minister Julia Gillard released the blueprint for her carbon tax, Qantas announced the new charge would represent a $110 million to $115 million hit to its bottom line.
Hancock Prospecting executive chair Gina Rhinehart went a step further, telling the media the carbon tax risked dissuading international investment in the Australian resources industry.
Hockey agreed, telling Investor Weekly Labor’s carbon tax was already destabilising the foreign investment market.
“Leading domestic and international companies are becoming increasingly concerned about sovereign risk in Australia. Business needs certainty to invest and this is not being provided by the Labor government,” he said.
“The coalition will fight against the carbon tax. It is a bad tax that must be stopped.”
A spokesperson for Assistant Treasurer Bill Shorten rejected the coalition’s assessment.
“The clean energy future package has been welcomed by superannuation funds and investor groups. As we have seen from Peabody’s offer for McArthur Coal, giant mining companies agree with us. Putting a price on carbon is good for the environment, good for business certainty and investment and good for Australia’s future,” the spokesperson said.
The minister’s office also cited a statement by the Investor Group on Climate Change (IGCC), which welcomed the carbon price package announcement.
“IGCC has consistently called for certainty and a market-based scheme and today’s carbon price announcement delivers both,” the IGCC said.
Canberra insiders have said the ‘faux’ election campaign will start in just 12 months, giving the Prime Minister a short year to convince voters of the clean energy future.
