Regulator urged to probe Aussie companies’ inflated claims on carbon price
20 Jun 2009
The Australian Competition and Consumer Commission, Australia's competition watchdog has said it would assess the grounds for a full inquiry into allegations that several Australian companies had deliberately played up the business risk of a carbon price to gain free polluting permits.
In a report to the commission, the Australian Conservation Foundation (ACF) along with a group of lawyers called the Australian Climate Justice Programme (ACJP) have alleged that Bluescope Steel, Rio Tinto, Xstrata, Woodside Petroleum, Boral and Caltex had overplayed the likely effects of a carbon price on their operations in Australia in order to corner the permits. At the same time the companies played down the risks to shareholders. (See: Top Australia companies deceiving government on carbon emissions)
Climate change adviser Professor Ross Garnaut who was commissioned to compile a review into Australia's response to climate change, said the ACCC should pick up the investigation immediately.
Meanwhile, Rod Pearse, chief executive, Boral has denied the allegations made by the ACF and the ACJP.
Garnaut addressed a forum organised by the Climate Insititute, Australian Institiute of Superannuation Trustees and the Investor Group on Climate changes on Thursday that called on politicians to stop stalling the passage of the Carbon Pollution Reduction Scheme.
He said that if it was true that some Australian business leaders have been saying something to government in the political debate and contradictory things to their investors then it was a very serious problem for Australian business. He added that if the allegations have been made then that needed to be investigated.
Garnaut sought to take on climate change sceptic Senator Steve Fielding saying he had also spoken to respected atmospheric physicist Richard Lindzen, when he met him on a recent trip to the US. He added that Lindzen discounted Fielding's stance on the global warming effect of carbon dioxide being overestimated.
Fielding's vote is crucial for passing the emissions trading legislation without the support of the Coalition.
He added that he would have been delighted if there were 10 or 20 or 100 Richard Lindzens around the world but unfortunately he happened to be the only one. He said that it would be imprudent to pick up one dissenting view among the serious climate scientists and ignore the views of the rest of Australia's credentialed climate scientists.
He also said the $12 billion in transitional assistance granted to trade-exposed businesses excessive and had been granted after successful lobbying. He said that for the trade-exposed, there was a case for transitional support and the allocations provided are more than adequate. He added that he would have preferred it to be have been done of a principle basis rather than a highly political basis.
was excessive and a result of intense, and successful, lobbying. "For the trade-exposed, I say there was a case for transitional support. I think the quantum of assistance is more than adequate which has been allocated now. I would have preferred it to be have been done on a principle basis rather than a highly political basis."
