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Why should miners be compensated for carbon tax?

Comments on “Miners in row over carbon tax pay: report”, NEWS - Resources and Energy, 9/04/2011, http://www.businessspectator.com.au/bs.nsf/Article/Miners-in-row-over-carbon-tax-pay-report-pd20110408-FQRNN?OpenDocument&src=hp3

How much a carbon tax will directly affect the costs of mining, due to its use of energy/carbon?

I would have thought that the impact on mining is indirect through reduced demand for carbon energy products.

If that is the case, why should mining be compensated at all from the first place, except for the fact that large miners have financial resources and power to extract subsidies or compensations if you like from the government?

To me, there is a broad and reasonable argument for a full or partial exempt of the tax on carbon for miners that export their products overseas, according to the proportion of output being exported. On the other hand, there is no or little ground for compensating them for any other reasons.

The government should set out a set of transparent criteria for compensation for businesses and articulate the rationale for them. Then it should stand firm against special interest groups' lobby for compensations beyond that would be eligible set out in the criteria.

At the moment, it is largely backroom bargaining and there is little transparency and the public is kept out of any scrutiny of any government compensations for businesses.

And that is hardly good governance and satisfactory.

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