Carbon tax could cost Victorian public transport upwards of $53 million

The carbon tax could cost the victorian public transport system upwards of  53 million over the next three years 16000646 800484332 0 0 14022213 300

The carbon price could cost the Victorian public transport system upwards of $53 million over the next three financial years, if new estimates from the Department of Transport are correct.

In a statement issued Friday (August 10), minister for public transport Terry Mulder noted that Public Transport Victoria would be required to reimburse rail, tram and bus operators for rising diesel fuel and electricity prices and that these extra costs would likely fall on state taxpayers. 

"Every extra dollar that the coalition government has to fork out for the costs of a carbon tax in relation to public transport is one less dollar that can be used to construct new rail lines, order new trains and trams, build or upgrade railway stations or introduce new bus routes," said Mr Mulder.

"The effect of Labor's carbon tax just keeps on getting worse."

That $53 million is broken down into costs of $15.2 million in the 2012/13 financial year, $16.1 million in 2013/14 and $21.7 million in 2014/15.

According to Mr Mulder, the Department of Transport's estimates are likely on the conservative side as they do not take into account extra train services added by the Victorian government on April 1.

Posted by Charlie Moore