Australia must move on key crises now, new report says
November 26, 2007
The latest State of the Regions report from leading forecasting group, National Economics, for the Australian Local Government Association presents a sobering snapshot of the nation.
The State of the Regions Report for 2007-08 launched today at the National General Assembly of Local Government in Darwin sets out how:
- Government is lagging on facing climate change, causing real risks for the well-being of Australia;
- The attendant crisis with our river system;
- The level of household debt is becoming unsustainable;
- Broadband must be boosted to make Australia internationally competitive. and
- A lack of spending on infrastructure could send regions to the wall.
"This year's report looks at 64 regions and focuses on the over-arching theme of better understanding the impacts of climate change on Australia's regions," says ALGA President, Cr Paul Bell. "We cannot afford to miss the train on this one. Local and regional communities are already bringing in mitigation and abatement measures which must be supported by government."
The report's modelling indicates that one plausible scenario (developed in this report) estimates the up-front costs to Australia's households from climate change at $14 billion - $17 billion annually (up to $60 weekly for rural households and $32 for metropolitan) composed of carbon price, loss of farm income and water security operating costs. These cost estimates represent operating costs only and exclude net additional capital expenditures focused on CO2 abatement and and water security capital works. The carbon price component of this is around $8 billion based on a $33 a tonne carbon price/tax. The $33 a tonne benchmark is probably the minimum required to make a significant impact, that is approximately a 25% reduction in emissions from business as usual levels. When exactly this carbon price is reached will depend on political will and urgency. Based on the recent Intergovernmental Panel for Climate Change (IPCC) report, urgency has a high priority and therefore one would expect that this carbon price would be reached sometime between 2012 and 2020. If the climate continues to deteriorate rapidly, a carbon price of double this level is not out of the question.
"The key issue to address is that these costs will fall disproportionately on the regions that can least afford them," Cr Bell states. "Regarding debt, the National Economics report shows Australia's real household disposable income is growing at about $24 billion a year. But household debt is growing at about $120 billion a year. As the report states, this level and spread of debt has no historic precedent in our nation."
"Another key point raised by National Economics is the comparatively uncompetitive state of Australia’s information and communication technology - especially the roll out of high speed broadband as a driver of economic development. It also convincingly shows infrastructure is our 'engine room' but there is a $14.5 billion backlog nationally in community infrastructure spending."
The Report can be ordered from the ALGA website: www.alga.asn.au
- Contact
- Amanda Lynch, Director, Government Relations – 0419 123 862 / 02 6122 9434
- National Economics: Ian Manning on 0419 262344 or Peter Hylands 0419 343921
