Carbon tax to hit waste disposal

IPSWICH ratepayers could pay at least double what they now pay to dump rubbish because of the carbon tax, a council report has revealed.

Ipswich City Council's finance branch produced the report to model impacts of the Federal Government's carbon price on the council's budget.

The report said the overall impact was a likely increase in costs of about $5 million this financial year.

The most significant increases in costs, it said, will relate to waste disposal, electricity and the purchase of "carbon intensive inputs" such as asphalt and concrete.

"These costs will need to be recovered through increases in the cost of specific services or through revenue increases or efficiency gains," the report said.

"With regard to domestic waste disposal, increases in the vicinity of $27 to $30 for kerbside collection and $5 per trip for transfer station fees are likely to be required to offset the additional costs. For other good and services, a CPI impact of 1% is expected."

Mayor Paul Pisasale said he was "shocked" by the report.

"The cost of living has sky-rocketed already and then the government wants people to pay more to dump their rubbish," Cr Pisasale said.

"I want to have meetings with our federal representatives to clarify the exact effect on each household.

"Charging people more money for dumping their rubbish; I'm trying to work out how that comes back to saving the planet."

Member for Blair Shayne Neumann said he was happy to work with the council.

"Council can benefit from the Low Carbon Communities Program and can also engage in carbon farming," Mr Neumann said.

"So there's real opportunities for Ipswich City Council to engage in getting credits and income.

"The credits from carbon farming are expected to exceed liabilities from the landfill sector, according to the Department of Climate Change and Energy, up to 2020.

"We are also going to provide ongoing financial support to councils through the Financial Assistance Grants. Those grants are very much geared to CPI increases. So Ipswich City Council's income from the Federal Government will go up to match any increase to the CPI caused by the carbon price."

Carbon tax facts

• At the centre of the government's policy on climate change is pricing carbon or a carbon tax.
• The idea is that polluters will pay per tonne of carbon they release into the atmosphere.
• This cost will initially be set at $23 and increase gradually until 2015, when we will shift to a trading scheme that will let the market set the cost.