Gillard’s Great Delusion
02-March-2011
Under the Government’s proposed carbon tax the cost of production will rise: everything from transport, fuel, electricity, refrigeration and lighting to operating machines will cost more.
Much of manufacturing is operating on thin margins and cannot absorb another cost increase. Locally manufactured goods will not be able to compete with cheaper imports that will not have the carbon tax imposed on them.
As a result of this tax we will see manufacturers already struggling go out of business or go offshore.
According to calculations conducted by IPART under the Government’s previous emissions reduction scheme (CPRS), electricity prices would go up by 25%. Any new scheme would see prices increase by at least this amount.
A small light industrial manufacturing plant which manufactures roof trusses, uses 3 phase power and employs 50 people will pay at least $6,250 more in electricity prices under a carbon tax. Add to that an increased delivery cost with a 6.5c per litre fuel increase for transit costs of material to the factory and complete trusses to building sites.
This tax is designed to cost every part of the economy, so that we are forced to use less power. It is a top down approach which will give overseas manufacturers an unfair advantage.
“This tax will kill jobs and manufacturing in this country,” Shadow Industry Minister Sophie Mirabella said.
“If Ms Gillard believes that under her carbon tax Australian jobs and manufacturing will be better off, she is as delusional as Colonel ‘my people love me’ Gaddafi,” Mrs Mirabella concluded.