Carbon tax to harm schools and hospitals

April 29th, 20124:10 am @



Treasurer Mike Baird (centre) said he had hoped to shield public schools and hospitals from the tax levy. Picture: Gary Ramage
Source: The Australian

THE carbon tax will add another $9100 to the running of each public school while $120,200 will be gouged from hospital budgets.

NSW Treasury modelling obtained by The Sunday Telegraph calculates the impact of the carbon tax on the state’s education and health budgets to top $46 million, at 19.9 million and $26.5 million respectively after July.

The modelling takes into account the rising cost of electricity and other services, flowing on from the tax impost on the country’s 500 biggest carbon polluting companies.

While the state government has raised mining royalties to offset the impact, it argued the overall hit to the budget would have a devastating effect on key services unless the government provided compensation.

Treasurer Mike Baird said he had hoped to shield public schools and hospitals from the tax levy through increased mining revenue but the federal government was threatening to cut infrastructure funding should mining royalties be increased.

“Not only is the Gillard Government imposing a billion-dollar hit to our state through their carbon tax, they are also maintaining the threat that NSW will be penalised with a cut to our infrastructure funding if we attempt to recover the costs through an increase in state mining royalties,” Mr Baird said.

“We have made it clear that we are not going to accept a multi-billion dollar hit without taking action and we will use all means within our power to recover the costs.

“The best outcome for the people of NSW would be no carbon tax, but at a minimum, compensation arrangements must be reconsidered. NSW taxpayers must not be left footing the bill.”

Treasury estimated the impact of the carbon tax on the health budget will be $120,200 for each of the state’s 220 public hospitals. The education budget will take a $19.9 million hit, adding $9100 to running costs for 2177 public schools.

Mr Baird said the tax had also reduced the value of state assets such as its electricity generators by $3 billion.

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