ECONOMIC modelling carried out for Australia's premiers has found the Federal Government's emissions trading scheme would leave a collective $5.5 billion hole in state budgets by 2020.
The modelling comes as historic legislation to implement the trading scheme passed the House of Representatives yesterday.
The modelling — by Access Economics' Ric Simes, a former economic adviser to Paul Keating — found Victoria would lose $860 million from its net operating budget by 2020.
It found that, under the trading scheme, jobs would grow by 32,000 fewer in Victoria — and 100,000 fewer across the country — than was expected without the scheme.
The modelling does not take into account changes the Government made to the scheme at the start of last month, including a one-year delay, a fixed carbon price for the first year and more industry assistance. It was conducted for the Council for the Australian Federation Secretariat, on which state and territory leaders sit.
Climate Change Minister Penny Wong dismissed the modelling, saying the most "robust" modelling had been conducted in the Treasury, and the Government had put a substantial assistance package on the table.
Senator Wong has been in talks with Greens leader Bob Brown, who said he had proposed a halt to logging in woodlands and forests, and the Government was considering the proposal. He said it was part of a package the Greens put forward to secure their votes.
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