BUSINESS PAPER
General Meeting
Wednesday 13 June 2012
Roma Administration Centre
NOTICE
OF MEETING
Date:
8 June 2012
Mayor: Councillor
R S Loughnan
Deputy Mayor: Councillor
W S Wason
Councillors: Councillor
J L Chambers
Councillor
R J Denton
Councillor
P J Flynn
Councillor
W M Newman
Councillor
C J O’Neil
Councillor
M L Price
Councillor
D J Schefe
Acting Chief Executive Officer: Mr Robert
Hayward
Senior Management: Mr
Tony Klein (Director Community Services)
Mr
Matthew McGoldrick (Director Corporate Services)
Mr
Barry Omundson (Director Infrastructure)
Officers: Ms
Jane Frith (Corporate Communications Officer)
Please find attached agenda for the General Meeting to be held at the Roma Administration Centre on June 13, 2012 at 9.00am.
Robert Hayward
Acting Chief Executive
Officer
Maranoa
Regional Council
General Meeting - 13 June 2012
TABLE OF CONTENTS
L Late Items
L.1 Carbon
Tax Impact on Council Gas Business
Prepared by: Matthew
McGoldrick, Director of Corporate Services
Attachment : Australian
Government - Proposed entry of Maranoa Regional Council in the Liable Entity
Public Information Database - Carbon Pricing Mechanism - Natural Gas Supplier
L Confidential Items
L.1 Roma
Recreation Centre - Expression of Interest 12/11 - Lease and Managment
Classification: Closed
Access
Local Government (Operations)
Regulation 2010 Section 72(e) contracts proposed to be made by it.
L.2 Water
Meter Reading
Classification: Closed
Access
Local Government (Operations)
Regulation 2010 Section 72(e) contracts proposed to be made by it.
Maranoa
Regional Council
General Meeting - 13 June 2012
Officer
Report
|
Meeting: General 13 June 2012
|
Date: 5 June
2012
|
|
Item Number: L.1
|
File
Number: D12/16485
|
Subject
Heading: Carbon Tax Impact on Council Gas
Business
Classification: Open
Access
Name of Applicant:
Location:
Author & Officer’s Title: Matthew
McGoldrick, Director of Corporate Services
|
Executive Summary:
This report is produced to update Council on some of the
issues relating to the Carbon Tax and it’s impact on Council’s Gas Business.
|
|
Officer’s Recommendation:
That the Report be noted.
|
Body of Report:
Council staff have attempted to contact the Clean Energy
Regulator since receiving the advice regarding the entry into the Liable Entity
Public Information Database (LEPID) on the 9th April, 2012 (refer
attached). On both occasions that contact has been made with the Department
questions were asked and either no response was been provided or “don’t know”
has been the answer. On both occasions the Departmental staff insisted that
Council is a “gas supplier” and will be liable and that that liability will extend
to all emissions not emissions above the 25,000 tonne threshold.
To clarify where Council stands the enable Council to
understand the potential liability for Gas customers the following questions
were asked:
(1) Can the clean energy regulator advise whether Council is a supplier
within the definition of the legislation?
(2) If Council is a reseller and not a supplier is there a special
category for resellers or can Council quote an Obligation Transfer Number?
(3) If Council can Quote an Obligation Transfer number how does that
system work, where is the application form, etc?
(4) If Council wanted to calculate the potential emissions and the costs
that were likely to be added to our bulk gas purchases how would Council calculate
that amount of CO2?
(5) Why isn’t there a calculator on the Clean Energy Regulator web site?
(6) Why doesn’t the Clean Energy Regulator web site have some examples of
how to calculate CO2 emissions?
(7) Are CO2 emissions higher or lower for LNG as opposed to LPG and Coal?
(8) If our households are burning LNG is this a lower emitter than coal
fired electricity? How do you calculate that difference?
(9) LNG energy costs are lower to a household wouldn’t that mean that CO2
emissions are lower or does that depend on the efficiency of the burning of the
gas as opposed to Coal?
(10) How will Council advise of our CO2 emissions if liable?
Will this be information Council supplies with the monthly BAS statement? What
is the collection mechanism?
(11) Has the Clean Energy regulator or somebody on behalf of
the Department provided training or an information pack to assist Council with
the calculation of the Carbon Tax liability?
(12) Council is currently exempt from lodging an Annual Tax
Return as a Not for Profit Public Sector Entity, is the intention of the
Department to collect the Carbon Tax through the Taxation system?
(13) If the Department is attempting to collect the Tax through
the Taxation System then Council could claim that the Tax is legislatively not
collectable as Council is not required to lodge an Annual Taxation return? The
Fringe Benefits Tax was legislated to make all employers liable for the Tax is
the Carbon Tax legislative model similar and therefore Council will be
required to lodge a “Carbon Tax Return”?
(14) If Council is a supplier of natural gas and is liable
for the Carbon Tax on all emissions because the 25,000 tonne threshold
mentioned in your documentation sent to Council on the 5th April is
misleading and does not apply to a supplier of natural gas. Does that then hold
for any CO2 emissions such as Council’s landfill? Are the emissions considered
separately or collectively?
(15) If Council is a liable entity can Council utilize the
Obligation Transfer Number mechanism? If Council are able to do that how would
it work? If Council didn’t do something like that wouldn’t Council pay carbon
tax and Santos who supply Council also pay carbon tax on the same gas and the
same gas would be double taxed?
(16) Is your Department aware of how our Council and Western
Downs Regional Council were listed on the register of gas suppliers for the
National Energy Customer Framework? Did your Department question anyone in our
Council or within the Department of Employment, Economic Development and
Innovation regarding the gas supply license issued to our Council?
At the time of writing no verbal answer has been provided
and a written submission has been made.
Consultation (internal/external):
Clean Energy Regulator, Western Downs Regional Council
Risk Assessment (Legal,
Financial, Political etc.):
Potentially $25,000 additional costs to Council
Policy Implications:
Nil
Financial Resource
Implications:
Financial Impact would need to be assessed as part of the
2012/13 Budget deliberations.
Link
to Corporate Plan:
Corporate Plan 2009-2013 —
8.5.8(d) To undertake Council’s reticulated gas operations on a commercial
basis to a preferable minimum breakeven standard based on the application of
full cost pricing principles with a view to minimising any community service
obligation that may eventu䡰놃낖︬
Supporting Documentation:
|
1View
|
Australian Government - Proposed entry of Maranoa Regional
Council in the Liable Entity Public Information Database - Carbon Pricing
Mechanism - Natural Gas Supplier
|
S12/5461
|
Report authorised by:
Robert Hayward, Director Planning & Environment
