22 October 2008

Carbon Pollution Reduction Scheme to hit transport passengers

The Federal Governmentââ¬â¢s proposed Carbon Pollution Reduction Scheme could impose a $180 million-plus bill on rail commuters over the first three years of its operation, according to research commissioned by the Tourism and Transport Forum (TTF).

TTFââ¬â¢s National Transport Manager Stewart Prins said the proposal to hit public transport passengers with a carbon price, while protecting motorists from extra costs, would do nothing to reduce greenhouse gas emissions.

ââ¬ÅâœThis perverse outcome of the proposed scheme, as it stands, will be a financial disincentive for people to use public transport,ââ¬~ Mr Prins said.

ââ¬ÅâœEncouraging people to drive is not a recipe for reducing carbon emissions.

ââ¬ÅâœAt the very least, the scheme should provide a level playing field between private and public transport.ââ¬~

Mr Prins said TTF commissioned specialist consultancy firm Sustainable Infrastructure Australia to review the electricity expenditure of Australiaââ¬â¢s urban rail and light rail operators, and to estimate the effects of the CPRS on their power costs.

ââ¬ÅâœThe modelling shows if the Government adopts a modest trajectory for greenhouse reductions, the total electricity bill for rail operators could rise by $100 million over the first three years.

ââ¬ÅâœIf the Government aims for deeper cuts, that bill could rise to over $180 million."

ââ¬ÅâœIn the third year, the electricity cost for operators could be up to 80 per cent more than what they currently pay."

ââ¬ÅâœThese costs will inevitably be passed on to passengers through higher fares ââ¬' a potential five per cent increase for commuters."

ââ¬ÅâœAt the same time, however, the Federal Government has promised to quarantine motorists from rising costs by reducing the excise on petrol."

ââ¬ÅâœThe transport sector is responsible for 14 per cent of Australiaââ¬â¢s emissions. An effective Carbon Pollution Reduction Scheme would encourage greater use of sustainable transport modes.

ââ¬ÅâœIt would also encourage the development of the next generation of private vehicles, such as plug-in electric hybrid cars.ââ¬~

Mr Prins said the Federal Governmentââ¬â¢s infrastructure program was heading in the right direction, but needed to be supported by a consistent policy framework across government.

ââ¬ÅâœThe Federal Government has indicated that it is open to investing in critical nation-building infrastructure ââ¬' including public transport projects.

ââ¬ÅâœThis is a major step forward, but investments in supply-side measures should be supported by appropriate demand-side measures.ââ¬~

Mr Prins said the Federal Governmentââ¬â¢s proposed Carbon Pollution Reduction Scheme would be discussed at the Global Cities conference in Sydney today.

A Report by The Mole

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