Government’s energy levy plan under fire from CCI

The Chamber of Commerce & Industry has criticised plans by the State Government to introduce a levy on major electricity producers and gas distributors to fund EnergySafety, a division of the Department of Con-sumer and Employment Protection.

Consumer and Employment Protection Minister John Kobelke said the levy, estimated to cost $4.4 million, was an economically effici-ent and fair way of meeting the cost of technical and safety regulation.

“EnergySafety already receives some of its income from licence fees paid by electrical and gas contractors,” he said.

“It is fair that suppliers and users of electricity and gas also contribute to the costs of ensuring industry safety.”

CCI chief executive John Langoulant said he was appalled by the complete lack of industry consultation on the matter.

He said EnergySafety should continue to be funded from general tax revenue.

“The argument seems to be that industry can recover the money from consumers, which in this case is virtually all the community,” he said. “Why not leave things as they are, instead of subjecting industry to a new tax with all of its inefficiencies and administrative compliance costs.”

Under proposed legislation, the minister would decide the amount and allocation of the levy.

Mr Langoulant said this amounted to giving the minister an open cheque payable by industry.

Mr Kobelke said a similar scheme had been operating for many years in Victoria and levies were also applied in Queensland, South Australia and New Zealand.

He said the agency’s role included technical and safety regulation, as well as related industry and consumer safety and compliance promotion.

Its regulatory role included prosecutions of electrical and gas contractors and investigations of major energy safety related incidents.