Fed: Energy plan contains damaging loophole Democrats

AAP General News (Australia)
08-31-2000
Fed: Energy plan contains damaging loophole Democrats

CANBERRA, Aug 31 AAP - A loophole in planned new laws to promote the use of renewable
energy would allow defaulting users to claim fines as tax deductions, the Australian Democrats
said today.

"We don't have tax deductible parking fines, nor should we be making it attractive
for electricity users to avoid meeting their obligations to start using renewable energy
under this legislation," Democrats energy spokeswoman Lyn Allison said in a statement.

"The coalition lets industry off the hook - these new targets will be a joke."

The Greens have also slammed the plan, which the government is promoting as a key part
of its policies to cut Australia's contribution to global warming.

The regime, likely to pass through the Senate, set renewable energy targets for the
first time, punishing industries who fail to steer away from fossil fuels to generate
electricity.

Under the laws, electricity buyers by 2010 will have to source an extra two per cent
of electricity from renewable energy, such as wind farms.

And it will cost $40 per megawatt hour for users who fail to meet targets.

But Senator Allison wants the Senate to support her push to link the charge to CPI
instead of allowing it to be tax deductible.

"We need a serious investment in renewable energy, and this will not be achieved by
making meaningless penalties for not doing so," she said.

"At $40, the charge is already too low to encourage the more expensive renewables,
wind and solar."

AAP lm/mfh/hu

KEYWORD: ENERGY (CARRIED EARLIER)

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