Post by ferryfast admin on Aug 19, 2011 12:15:04 GMT -5
Ferry operators warn commuters of carbon tax price hikes
JUDITH KERR
www.baysidebulletin.com.au/news/local/news/general/ferry-operators-warn-commuters-of-carbon-tax-price-hikes/2263116.aspx#
18 Aug, 2011 12:00 AM
THE cost to run ferries and barges to North Stradbroke and the southern bay islands would rise about six cents per litre under the Federal Government's proposed carbon tax, according to a local ferry operator.
Stradbroke Ferries CEO David Thomson said under Prime Minister Julia Gillard's proposed carbon tax regime, the government's fuel tax credit on diesel would be slashed by 6.21 cents a litre in 2012.
"That's going to add an extra 6.21 cents a litre to the company's cost of diesel, or about $150,000 in operating expenses, and may lead to a hike in ferry and barge ticket prices," Mr Thomson said.
"The company is unable to absorb that extra financial burden so we will be forced to consider reducing services or passing the cost on to passengers.
"We haven't yet worked out what the hike in diesel prices will mean for fares or how these additional expenses will be passed on to the customer but they will have to be passed on.
"This will seriously affect the cost of living for all island residents as every ferry and barge operator in Redlands uses diesel," Mr Thomson said.
Under the government's Clean Energy Future Plan, often referred to as the carbon tax, fuel used for domestic shipping purposes, such as ferries, would be subjected to a carbon price delivered through a reduction in fuel tax credit entitlements.
Currently, marine and rail transport operators pay no excise on the fuel they use because their excise is offset under the fuel tax credits scheme.
The possible impact of the carbon tax on local transport prompted Redland City Council this month to ask the Local Government Association of Queensland to discuss the issue with the Prime Minister.
In the meantime, Stradbroke Ferries would investigate ways its fleet, which uses standard diesel, could switch to using biodiesel fuel to be eligible for more carbon tax credits offered under the carbon tax scheme.
However, Federal Member for Bowman Andrew Laming said changing to biodiesel fuel would not save Straddie Ferries from the full impact of the 6.21 cent a litre cut in the diesel tax credit.
"The company would have to modify their engines to be able to use biodiesel, an expense that is not covered by any government funding," Mr Laming said.
"Biodiesel is carbon tax exempt but a 10 per cent blend, which would be used in the ferries, will only save 10 per cent of the 6.21 cent a litre change.
"Shifting to full biodiesel will actually cost more, due to a lack of cheap supply and the costs of retuning the boats' engines to be able to cope with the biodiesel," Mr Laming said.
Mr Laming wrote to the Prime Minister on July 15 about the costs the ferry company faced under the proposed tax.
The letter asked the Gillard government to consider giving the ferry company funding under a Community Service Obligation subsidy, however, no reply has been received.
The proposed polluter-pays carbon tax, set to be introduced in July next year at $23 a tonne, is due to be introduced in Parliament next month and passed as an Act by year's end.
The 6.21-cent-a-litre cut to excise on diesel, set to start in July, will be the first phase of the Federal Government's three-year excise reduction plan.
The next phase, in 2013, will be a cut to the excise of 6.52 cents a litre which will rise to 6.85 cents in 2014.
Federal Minister for Climate Change Greg Combet told The Redland Times the impact of the carbon price on ferry operators was expected to be modest, compared to current variations in fuel prices due to the exchange rate and international oil prices.
"In most cases, it is anticipated that the carbon price impact will be passed through to consumers, which is why the government has committed to a comprehensive assistance package for households," Mr Combet said.
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JUDITH KERR
www.baysidebulletin.com.au/news/local/news/general/ferry-operators-warn-commuters-of-carbon-tax-price-hikes/2263116.aspx#
18 Aug, 2011 12:00 AM
THE cost to run ferries and barges to North Stradbroke and the southern bay islands would rise about six cents per litre under the Federal Government's proposed carbon tax, according to a local ferry operator.
Stradbroke Ferries CEO David Thomson said under Prime Minister Julia Gillard's proposed carbon tax regime, the government's fuel tax credit on diesel would be slashed by 6.21 cents a litre in 2012.
"That's going to add an extra 6.21 cents a litre to the company's cost of diesel, or about $150,000 in operating expenses, and may lead to a hike in ferry and barge ticket prices," Mr Thomson said.
"The company is unable to absorb that extra financial burden so we will be forced to consider reducing services or passing the cost on to passengers.
"We haven't yet worked out what the hike in diesel prices will mean for fares or how these additional expenses will be passed on to the customer but they will have to be passed on.
"This will seriously affect the cost of living for all island residents as every ferry and barge operator in Redlands uses diesel," Mr Thomson said.
Under the government's Clean Energy Future Plan, often referred to as the carbon tax, fuel used for domestic shipping purposes, such as ferries, would be subjected to a carbon price delivered through a reduction in fuel tax credit entitlements.
Currently, marine and rail transport operators pay no excise on the fuel they use because their excise is offset under the fuel tax credits scheme.
The possible impact of the carbon tax on local transport prompted Redland City Council this month to ask the Local Government Association of Queensland to discuss the issue with the Prime Minister.
In the meantime, Stradbroke Ferries would investigate ways its fleet, which uses standard diesel, could switch to using biodiesel fuel to be eligible for more carbon tax credits offered under the carbon tax scheme.
However, Federal Member for Bowman Andrew Laming said changing to biodiesel fuel would not save Straddie Ferries from the full impact of the 6.21 cent a litre cut in the diesel tax credit.
"The company would have to modify their engines to be able to use biodiesel, an expense that is not covered by any government funding," Mr Laming said.
"Biodiesel is carbon tax exempt but a 10 per cent blend, which would be used in the ferries, will only save 10 per cent of the 6.21 cent a litre change.
"Shifting to full biodiesel will actually cost more, due to a lack of cheap supply and the costs of retuning the boats' engines to be able to cope with the biodiesel," Mr Laming said.
Mr Laming wrote to the Prime Minister on July 15 about the costs the ferry company faced under the proposed tax.
The letter asked the Gillard government to consider giving the ferry company funding under a Community Service Obligation subsidy, however, no reply has been received.
The proposed polluter-pays carbon tax, set to be introduced in July next year at $23 a tonne, is due to be introduced in Parliament next month and passed as an Act by year's end.
The 6.21-cent-a-litre cut to excise on diesel, set to start in July, will be the first phase of the Federal Government's three-year excise reduction plan.
The next phase, in 2013, will be a cut to the excise of 6.52 cents a litre which will rise to 6.85 cents in 2014.
Federal Minister for Climate Change Greg Combet told The Redland Times the impact of the carbon price on ferry operators was expected to be modest, compared to current variations in fuel prices due to the exchange rate and international oil prices.
"In most cases, it is anticipated that the carbon price impact will be passed through to consumers, which is why the government has committed to a comprehensive assistance package for households," Mr Combet said.
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