14 Jun 2011

Coal industry sees carbon tax as threat to jobs

10:56 am on 14 June 2011

The coal industry in Australia says 5000 jobs are at risk within the first three years of a carbon tax being introduced.

A survey commissioned by the Australian Coal Association analysed the data of 82 coal mines based on a carbon tax starting at $A20 and rising 4% each year.

The association says this will cost the industry about $A18 billion in the first nine years.

The ABC reports that it says 18 mines could close as the tax rises to more than $A50 per tonne.

The ACA says 4000 jobs are at risk in New South and Queensland alone in the first three years of the tax, with 14,000 expected to be lost across the economy Australia-wide.

ACA executive director Ralph Hillman said expansion will be stifled.

Between $A23 billion and $A45 billion in export earnings would be lost over the next decade.

The ACA says it supports pricing carbon but is urging the federal government to rethink its tax model.