Fed govt should delay CPRS: Buswell

Western Australia has urged the Commonwealth to delay the introduction of the Carbon Pollution Reduction Scheme, saying trade exposed industries need to be better compensated. In its submission to the federal government's Green Paper, WA argues it would be
premature to start the scheme in 2010 without the design being properly worked out.

The state faces the risk of losing several major projects to other markets if costs
are not properly ameliorated, Treasurer Troy Buswell says.
Recent high commodity prices - for nickel for example - could also lead to some
activities being ineligible for compensation that would have been eligible under
normal prices, he said.
"My understanding of the current model is that if it's above 1,500 (tonnes per
million dollars of revenue) then 60 per cent of emissions are excluded," Mr Buswell
said.
"Some of our strategic export industries like LNG fall under that limit.
"And we're not ... comfortable that ... the 60 per cent limit takes account of the
export sensitivities or the carbon leakable potential of some of our exporting
industries."
Mr Buswell's submission backs up calls by US oil giant Chevron last week for the
federal government not to penalise the oil and gas industry.
Managing director Roy Krzywosinski said an emission price of $20 per tonne over the
life of a project could result in increased operating costs between $100 million and
$200 million a year.
WA's submission also says that compensation to households facing higher water and
electricity prices would cost the state $6 million a year, if the current CPRS was
implemented in its present form.