Muswellbrook Shire Council is pushing back against Newcastle City Council’s call for a new Climate Pollution Levy on coal, gas and oil export corporations, arguing it’s inconsistent for Newcastle to seek further costs on the mining industry while continuing to benefit from the jobs and economic activity it generates.
Newcastle City Council recently resolved to advocate for the Federal Government to establish a National Climate Compensation Fund, financed through a proposed levy on coal, gas and oil companies, to support climate adaptation, resilience and disaster recovery. The motion also calls for a parliamentary inquiry into the adequacy of the 2025 National Adaptation Plan. The proposal has also received support from several other councils, including the City of Sydney, City of Parramatta and the City of Hobart, none of which, as Muswellbrook Council highlights, currently host active commercial coal or gas mining operations.
Muswellbrook Mayor Jeff Drayton said the debate highlighted a growing disconnect between councils advocating for additional costs on the mining industry and the regional communities that host it.
“Muswellbrook Shire Council supports responsible climate action and recognises the need to prepare communities for the impacts of natural disasters and a changing climate,” he said.
“But adding another financial burden to an industry already facing significant uncertainty is not without consequences.”
Mayor Drayton said thousands of people who work in mining in Muswellbrook Shire live in communities across the Hunter, including Newcastle, where their wages support households and businesses. He said around 20,000 vehicles travel through Muswellbrook every day, placing pressure on local roads and infrastructure the council is responsible for maintaining.
“There is a clear contradiction in Newcastle seeking additional costs on an industry from which its own community continues to benefit,” he said.
“Decisions that hurt mining communities like Muswellbrook ultimately have consequences for Newcastle too.”
