The $10 billion that the Government will invest in the Corporation will generate a return to taxpayers. Because the CEFC earns a return, the overwhelming majority of Government contributions to CEFC do not directly impact on the budget bottom line.
The Government has been completely transparent about the budget treatment of the CEFC since it was announced in July.
The concept of the CEFC is similar to financial mechanisms established overseas to invest in clean energy and low pollution technologies. The UKs Green Investment Bank, for instance, will commence in April 2012, with an initial government commitment of 3 billion and like CFEC will use equity investments, lending and risk mitigation products.
Costings published as part of the Clean Energy Future Package were undertaken by the Treasury and the Department of Finance and Deregulation, and apply long standing budget and international accounting standards.
Department of Finance and Deregulation Deputy Secretary Mr David Martine made the budget treatment of the CEFC clear in statements to Senate estimates today.
If an entity in the general government sector is undertaking investments to achieve a return, then they do not impact on the budget bottom line according to the accounting standards. So the extent to which the Clean Energy Finance Corporation is undertaking investments, and thats the Governments policy, then the majority of its activities will not impact on the budget bottom line.
MARTINE SENATE FINANCE ESTIMATES COMMITTEE 18 OCTOBER 2011
This is an Opposition that continues to fail to understand how the Budget works getting it wrong on the Budget treatment of the CEFC, the NBN and the Future Fund. This comes on top of their $10.6 billion black hole at the last election and the $70 billion in cuts they will need to make to balance their books.Todays claims about the CEFC show the Opposition are incompetent when it comes to managing a Budget, and cannot be trusted to manage the economy.
