Clive Palmer says his carbon tax repeal amendment will help industry too
|
Version 0 of 1. Clive Palmer says the amendment he is demanding in return for his party’s Senate votes to repeal the carbon tax will include price reductions for large industrial power users that have direct contracts with generators, as well as for households. He also suggested it could apply to businesses that put up prices due to the carbon tax, other than the electricity and gas companies covered by the competition watchdog’s price exploitation powers. The government believes the additional powers it has given the Australian Competition and Consumer Commission (ACCC) will ensure power price reductions are passed on to households when the carbon price is repealed, and that Palmer’s demands – while not necessary – will be easily met. But Palmer insists his amendment to the carbon repeal bills will force companies to pass on savings. In an interview with Guardian Australia at the weekend, he suggested it would also apply to electricity contracts entered into by large industrial users, and possibly to companies other than electricity and gas providers. “Our amendment makes it a requirement that people will have to pass on the power cost savings … not a voluntary situation, it doesn’t leave it up to the ACCC to decide at its discretion whether or not it wants to enforce this,” he said. “It will apply to every Australian company … everybody under our jurisdiction … you don’t have to worry, it will apply to everyone,” he said, confirming it would apply to industrial contracts for power supply such as those signed by aluminium smelters. Palmer said he was acting because as a businessman he knew businesses would be inclined not to pass on the savings, and would just “play around” with the regulator. “I’m in business, business wants to make money,” he said. “If I was in business and this change came along I wouldn’t pass it on, I’d just keep the money. And I’d just play around with the regulator. “But I’m not in business, I’m serving the Australian people, so knowing that I am going to make sure this legislation goes through to protect to protect our pensioners and everyone like that.” Palmer has given up several directorships but remains the owner of a number of companies, including a nickel refinery, coal leases and an iron ore holding. The chief executive of the Electricity Supply Association of Australia, Matthew Warren, said most large energy users had contracts with explicit provisions for the carbon tax, enshrined by contract law. Advisers to Palmer are in the process of drafting the amendment and consulting the government on its detail. The ACCC has been given specific price exploitation powers, with the ability to impose fines, for power companies that do not pass on the carbon repeal price savings. But in relation to other businesses, where the price impact will be smaller, it has a monitoring role. The government’s carbon tax repeal legislation decrees the tax is abolished as of Tuesday, 1 July. It expects the repeal to pass the new Senate, with the votes of the three Palmer United party senators, before the end of July. Any delay to the passage of the repeal will cause considerable commercial complexities. |