Carbon Tax To Hurt Hospital Power Bills

Carbon Tax To Hurt Hospital Power Bills

Victoria Premier Ted Baillieu

Julia Gillard’s Carbon Tax Power Price Increases On Victorian Hospitals

Victor P Taffa

Electricity price increases caused by Julia Gillard’s carbon tax will put more pressure on the Victorian public hospital system, Premier Ted Baillieu said today.

Visiting the Monash Medical Centre in Clayton with Federal Opposition Leader Tony Abbott, Premier Baillieu said the Victorian Coalition Government’s initial analysis showed the Gillard Government’s carbon tax will increase annual power bills for Victoria’s public hospitals by around $13.6 Million p.a. from mid-2012.

“This health cost slug is another example of the Gillard Government’s continuing assault on Victorian taxpayers, on top of the $4.1 Billion cut to GST revenue and a failure to fund vital infrastructure projects through the Federal Budget.” Premier Baillieu said.

“Based on current electricity usage, the total cost to Victoria’s public hospitals of power price increases caused by the carbon tax between now and 2020 will be just under $143 Million.”

“The carbon tax will increase annual power costs for the Monash Medical Centre in Clayton by almost $660,000 from next year, with a total of almost $7 Million in extra electricity costs by 2020.”

“It is unacceptable that the Gillard Government expects Victorian hospitals to pay the additional cost of its carbon tax without compensation.”

“This short-changing of the Victorian taxpayer is in contrast to the introduction of the GST by the Howard Government, which involved appropriate consideration of the health sector.” Premier Baillieu said.

Last month, Premier Baillieu wrote to the Prime Minister outlining the Coalition Government’s concerns about the proposed carbon tax’s impact on Victorian families, businesses and the delivery of essential services such as health. In response, the Gillard Government has offered to fund less than half of the extra power costs forced on Victorian public hospitals.

The initial analysis released today provides a conservative assessment based on the current level of electricity and gas consumption by Victorian public hospitals, and does not include general price impacts of the carbon tax on the health sector, estimated by Federal Treasury to be a 0.7 % increase.