.
Macarthur Coal Ltd’s (ASX:MCC) chairman, Keith De Lacy, has rejected that a proposed $10 carbon tax starting rate will be effective.
Speaking to the Australian, Mr De Lacy says a levy of $10 per tonne would be pointless as it would have no impact of behaviour and could result in a higher tax rate.
Mr De Lacy also says that if the tax went up to $30 per tonne it would dramatically slow down investment in the coal industry.
The Business Council of Australia has proposed a $10 per tonne carbon tax, that has been endorsed by AiGroup, Transfield Services Ltd (ASX:TSE) and ConnectEast Group (ASX:CEU), but opposed by the Australian Chamber of Commerce.
Macarthur Coal reported a profit of $141.2 million in the second half of 2010.
