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Emissions trading “to hit aged care sector hard”

An economist has warned that Australia’s community welfare sector will need more than a $1 billion in compensation to cope with an emissions trading scheme.

Australia Institute executive director, Richard Denniss, says many organisations within the sector do not have the capacity to pass on extra costs to their consumers.

Mr Denniss has told ABC Radio’s AM that community centres, scout groups and surf life saving clubs will all feel the effects of higher energy costs.

“For example, an aged care centre,” he said. “If you have got hundreds of people in an aged care home then that’s a lot of hot water systems, that’s a lot of air conditioners, it’s a lot of heaters and it’s a lot of other energy intensive appliances being used 24 hours a day, seven days a week,” he said.

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