Carbon Tax Devalues Power Stations

Carbon Tax Devalues Power Stations

Queensland Minister for Energy and Water Supply Mark McArdle

Federal Labor Grandstanding Over Power Assets Sales

Victor P Taffa

Despite today’s grandstanding by Federal Labor, the Newman Government will not privatise any assets unless it has a mandate from voters, Queensland Energy and Water Supply Minister Mark McArdle said today.

Calls by the Federal Government for States to sell power assets would result in Queensland taxpayers losing more than $1.5 Billion through massive devaluations of electricity assets due to the Carbon Tax.

Coal-fired power stations, which make up almost 60 % of the Queensland Government-owned generating capacity, have been significantly devalued due to the Carbon Tax.

Mr. McArdle said selling them in the current market could result in prices of almost half their pre-Carbon Tax value.

“The Gillard Government has handed out compensation to private overseas electricity companies to compensate them for the Carbon Tax but not one cent has been passed out to State Governments, which has resulted in massive devaluations of assets due to this tax.” Mr. McArdle said.

“Regardless of today’s grandstanding by Federal Labor, the Newman Government has made it clear that privatisation would not occur without receiving a mandate from voters at an election.”

Mr. McArdle said the privatisation announcement by Federal Labor puts it at odds with many trade unions which would fund its election campaign next year.

“I am sure trade union officials seeking future political endorsement will stay silent on this issue and allow Federal Labor to run a privatisation agenda that it has no mandate for.” Mr. McArdle said.

“Just like the Carbon Tax, Federal Labor has no mandate for privatisation of electricity assets.”