Carbon Pollution Reduction Scheme to hit transport passengers
The Federal Government’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).
TTF’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.
“This perverse outcome of the proposed scheme, as it stands, will be a financial disincentive for people to use public transport,†Mr Prins said.
“Encouraging people to drive is not a recipe for reducing carbon emissions.
“At the very least, the scheme should provide a level playing field between private and public transport.â€
Mr Prins said TTF commissioned specialist consultancy firm Sustainable Infrastructure Australia to review the electricity expenditure of Australia’s urban rail and light rail operators, and to estimate the effects of the CPRS on their power costs.
“The 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.
“If the Government aims for deeper cuts, that bill could rise to over $180 million.”
“In the third year, the electricity cost for operators could be up to 80 per cent more than what they currently pay.”
“These costs will inevitably be passed on to passengers through higher fares – a potential five per cent increase for commuters.”
“At the same time, however, the Federal Government has promised to quarantine motorists from rising costs by reducing the excise on petrol.”
“The transport sector is responsible for 14 per cent of Australia’s emissions. An effective Carbon Pollution Reduction Scheme would encourage greater use of sustainable transport modes.
“It would also encourage the development of the next generation of private vehicles, such as plug-in electric hybrid cars.â€
Mr Prins said the Federal Government’s infrastructure program was heading in the right direction, but needed to be supported by a consistent policy framework across government.
“The Federal Government has indicated that it is open to investing in critical nation-building infrastructure – including public transport projects.
“This is a major step forward, but investments in supply-side measures should be supported by appropriate demand-side measures.â€
Mr Prins said the Federal Government’s proposed Carbon Pollution Reduction Scheme would be discussed at the Global Cities conference in Sydney today.
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