INDUSTRY WARNS: MANUFACTURERS FACE CARBON TAX ONSLAUGHT

29-June-2012

The Gillard government’s claim that less than 500 businesses will have to pay the carbon tax have been once again shown to be a complete sham following revelations that 60% of Australian manufacturers do not plan to pass on the cost of the carbon tax.

The Australian Industry  Group’s survey of manufacturers was released today and reveals that manufacturers felt they could not raise their prices due to increasing competition.

According to AIG chief executive Innes Willox today, not passing on prices will:

            …result in a further erosion of margins and will put even more stress on this big employing          sector, especially as it is a cost not being borne by most of their overseas competitors.”

“The manufacturing sector is already struggling under the extreme pressure of global economic conditions, and it is now clear that the carbon tax will make it worse,” said Sophie Mirabella, Shadow Minister for Industry, today.

“Sixty percent of manufacturers will not even be able to pass on their additional costs, putting them under even more financial stress.

“This incompetent government has shown time and again that they do not understand manufacturing with their complete failure to get the policy settings right.

“The toxic carbon tax must be dumped before irreparable damage is done to Australia’s manufacturing sector and the economy as a whole,” Mrs Mirabella concluded.