Carbon tax 'could damage public transport'

The introduction of carbon tax by the government could lead to more people taking out car insurance and driving, as one expert has suggested public transport will suffer under the legislation.

Set to be announced on Sunday (July 10th 2011), the agreement between Labor, the Australian Greens and independent MPs will exempt cars and light vehicles from payments.

NineMSN cited Professor John Stanley, from the Institute of Transport and Logistics Studies at Sydney University, who told a transport summit: "At the moment we (public transport) probably look like we're collateral damage."

This is despite a survey conducted by Auspoll and commissioned by a coalition of groups, which found that nearly three-quarters of Aussies want revenue from carbon tax to be invested in better public transport.

Mr Stanley said the results indicated "very strongly" that people see this as the solution to congestion problems in the cities.

He noted that this issue impacts on all those living in cities, not just car insurance customers, as it lowers their quality of life and has an adverse effect on their finances.ADNFCR-1761-ID-800613206-ADNFCR