EAST TIMOR could be slugged for millions of dollars a year under the carbon tax, which is set to take a bite out of revenues from offshore natural gas fields that Australia shares with the impoverished nation.
The tiny country relies heavily on revenues from fossil fuel deposits in the Timor Sea and has expressed concern after learning it is likely to be financially disadvantaged under the tax.
The federal government has acknowledged it needs to strike a compromise with its neighbour as to how the carbon tax will apply to greenhouse emissions arising from gas production in the Joint Petroleum Development Area, though no discussions have yet taken place.
East Timor’s Secretary of State for Natural Resources, Alfredo Pires, said the development area meant ”a lot to our future”, and his country would not accept the unilateral application of Australian legislation.
Yet another instance of nations regulating CO2 beyond their borders.
Timor Leste is one of the poorest countries in the world, and Australia has an ongoing aid program to provide basic infrastructure. Yet, the carbon dioxide tax will actually further impoverish them. Hypocritically, the measures that will deprive Timor of revenue will be neutral for wealthy Australia.
The solution, of course, will be to slug Australian taxpayers even further to make up the difference. More waste, more taxes, and for what?