CARBON TAX

In reply to Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (27 June 2013).

The Hon. C.C. FOX (Bright—Minister for Transport Services, Minister Assisting the Minister for the Arts): I have been advised of the following:

The impact of the carbon tax for diesel and electric trains will arise from different costing mechanisms. Differences in carbon pricing that need to be considered when comparing the diesel and electric trains are summarised as follows:

The carbon price on diesel is paid in advance based on the number of litres purchased (this includes fuel stored at depots).

The carbon price on electricity is paid in arrears based on kilowatt hours consumed.

The carbon price charged on electricity consumption is variable with regard to transmission and distribution losses and the amount of electricity produced from renewable energy.

The electric trains are more energy efficient and have the capacity to put electricity back into the network when slowing down, they do not require refuelling each night and do not require the engine to be running at full capacity when stationary. In addition, the carbon pollution emitted is located away from major population areas.

The diesel trains also require the fuel tanks at the depots to be refuelled and as such have additional transportation costs.

Based on the most recently available information, the amount of carbon emissions produced by a diesel train per kilometre is higher than that produced by the electric trains.

Therefore, the carbon cost of the electric trains will be lower than for the diesel trains. It is estimated the carbon charge for diesel trains will cost 9¢ per kilometre compared to 8¢ for the electric trains.