ABOLITION OF CEFC COULD COST THE BUDGET $1.5 BILLION.

Media Release.

Mark Butler

Shadow Minister for Climate Change 

Date:  28 November 2013

The federal budget could take a whopping $1.5 billion hit with the abolition of the Clean Energy Finance Corporation (CEFC), a Senate Inquiry has heard.

CEFC Chair Jillian Broadbent told the inquiry the CEFC could make $200 million a year for the taxpayer and could reduce 50 per cent of Australia's carbon pollution by 2020.

CEFC Chief Executive Oliver Yates called it "the lowest cost action you are going to get".

The CEFC makes a commercial return from loans to help new, ambitious renewable projects get a foothold; projects like the Macarthur Wind Farm, the largest in the Southern Hemisphere.

These loans have the potential to generate $200 million a year for the taxpayer, while Ms Broadbent told the inquiry that, “It will cost the taxpayer more to shut down the CEFC than it will save.”

But despite the evidence, Tony Abbott is going ahead with closing the CEFC, ignoring the advice of experts once again.

Tony Abbott has ignored the advice of business (the Australian Industry Group representing 60,000 Australian businesses) who have called for an international market-based mechanism as the cheapest and most effective way to reduce carbon pollution.

He has ignored the advice of economists and climate scientists who say that his climate con - where the taxpayer pays big polluters - will not work. 

He is taking the axe to renewable energy, slashing hundreds of millions of dollars to Australia’s Renewable Energy Agency (ARENA).

He has silenced the independent voices of the Climate Commission and the Climate Change Authority, made up of some of Australia's most highly esteemed business leaders, economists and scientists, including Australia's Chief Scientist.

Now he is ignoring advice which will have a significant impact on the federal budget.

The arrogance of this government is simply staggering. 

Just 12 per cent of voters believe Tony Abbott's Direct Action con will work, while the overwhelming majority wants Australia to take action on climate change.

But Tony Abbott doesn't accept the "so-called science".

Tony Abbott needs to emerge from the dark ages and listen to experts, business, economists, scientists, and the Australian people on this. On this one, Tony Abbott is totally alone.