Green energy 'will cost hospitals millions'

THE Federal Government's renewable energy targets will hit hospitals hard, increasing operating costs by millions of dollars every year, a Senate inquiry has been told.

Labor plans to drive investment in renewable energy and wants a target of having 20 per cent of electricity coming from green sources by 2020.

But Catholic Health Australia (CHA) says the scheme will cost hospitals and aged-care facilities at least $10 million next year as a result of increased energy bills.

Its submission to the upper house economics committee suggests Labor's proposed laws will cost Catholic hospitals $650,000 in 2010, increasing to $1.68 million in 2020. Aged-care costs would increase by $366,000 in 2010 and $1.04 million in 2020.

That's a total of $1.02 million next year and $2.72 million a year a decade later.

The Catholic sector runs 10 per cent of all Australian hospitals.

"Australia can't afford to impose such a heavy financial penalty on our health sector," CHA chief executive Martin Laverty said.

"Commonwealth funding for hospital and aged-care services must be adjusted to meet the costs of the proposed schemes."

Mr Laverty said his organisation supported the government's effort to pursue renewable energy targets and reduce carbon pollution, but it shouldn't be done at the expense of health care