Australia carbon price to have small impact on GNP: govt

Mon Jun 6, 2011 2:00pm GMT

* Australia Treasurer Swan says CO2 price won't stop growth

* Swan says CO2 price will see shift from coal to gas

* Swan says CO2 price to have minimal impact on incomes (.)

CANBERRA, June 7 (Reuters) - Australian plans to put a price on carbon emissions won't stop the nation's strong economic growth and will have only a small impact on incomes, according to Treasury modelling to be unveiled by Treasurer Wayne Swan on Tuesday.

The carbon price is a key policy which could make or break Prime Minister Julia Gillard's minority government, which relies on support from the Greens and three independents for its one-seat parliamentary majority.

The government is struggling to sell its climate policy, in the face of opposition claims that it will drive up the cost of living and trigger job losses.

Swan will spell out Labor's argument for a carbon tax and eventual emissions trading scheme in a speech to the National Press Club, and he will release new modelling on the impact of a carbon price.

"Our economy will continue to grow solidly while making deep cuts in carbon pollution," Swan will say, according to excerpts of his speech obtained by Reuters.

"The modelling will show real national income growing strongly under a carbon price, at an average annual rate per person of around 1.1 percent until 2050.   Continued...

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.2803
Euro USD =1.1171
Rand USD =0.0784