The debate over the proposed Carbon Tax continues to gather steam as a new survey released on Tuesday by the Australian Coal Association shows that mining jobs in New South Wales and Queensland will be affected by it.
The survey conducted on 82 coal mining sites in Australia says that about 4,000 jobs may be lost in the two states due to the planned tax.
The Australian Coal Association has said that possible dire effects that may disturb the mining operations in New South Wales and Queensland will lead to loss of jobs in the three years from the implementation of the tax. The mining area of Hunter Valley is likely to be the region which gets most affected by the tax once it goes into effect with almost 3,000 jobs being lost in that region alone.
Executive Director of the Australian Coal Association, Ralph Hillman said that most of the impact of this tax does fall on New South Wales. He added that resources firms are expected to shut down their businesses within the initial decade of implementing the carbon emission tax.
Mr Hillman said that rather than slapping on a big tax the government should consider a phased transition like the European Union implemented. That way they would not be risking so many mining related jobs.
As per the survey 18 out of the 82 coal mines would not be viable under a carbon price starting at 20 dollars a tonne and rising to 50 dollars by 2020. This gives credence to the concern that the carbon pricing will reduce enormously the expected boost to the economy from the resources and commodities boom as many potential mines will not be developed.