Business Council slams Carbon Tax legislation
The Business Council of Australia (BCA) has been critical of the Clean Energy Future Package legislation passed by parliament yesterday (8 November).
BCA Chief Executive Jennifer Westacott said the legislation has the potential to significantly increase risks to Australia’s economic growth and competitiveness.
“It is extremely disappointing that the parliament has not heeded the council’s calls to include essential safeguards in the legislation and act in Australia’s national economic interest,” Westacott said in a statement.
“The council’s analysis has demonstrated the legislation is based on optimistic assumptions in the Treasury modelling that have not been stress tested.”
Westacott said the lack of safeguards in Australia’s approach is particularly concerning given the uneven pattern of growth in Australia, the increased uncertainty in the global economy, and the lack of progress on international negotiations to put a price on greenhouse gas emissions.
“The legislation as passed risks placing Australia too far ahead of its competitors in pricing carbon,” she said.
Westacott added the council will closely monitor the state of the global and domestic economies and developments in both the international negotiations and the carbon markets and the implications of these for the implementation of the legislation.
“We will continue to discuss with our members the impact of the rollout of the legislation on their competitiveness.”
She noted that if the assumptions in the Treasury modelling are proved to be optimistic, and the impact on Australia’s business competitiveness is worse than anticipated then the government must be prepared to amend the legislation.
The lower house of Parliament approved the Clean Energy package on 12 October.
Under the legislation a fixed carbon price of $23 a tonne will apply from 1 July, 2012, moving to a flexible price after three years.The carbon price is designed to meet the emissions reduction target endorsed by both major parties of at least 5 per cent by 2020, compared with 2000 level.
Minister for Climate Change and Energy Efficiency Greg Combet said the carbon price mechanism would apply to around 500 of the country’s largest polluters.
“It is a charge on pollution, not a tax on households or small businesses,” he said.
What do you think the Carbon Tax will mean for your business? Have your say below.
Helen Hull is the editor of First 5000, the leading network for mid-sized businesses in Australia.
Peter Roberts
November 13, 2011 at 11:57 pm
The problem with the BCA’s
The problem with the BCA’s analysis is it lacks any moral dimension. This is a necessary response to the probability we are heading for catastrophic climate change. If you still think we are not – you are dreaming. Action is needed on a global scale and Australian business must be part of the solution. There are plenty of companies who find focusing on energy use brings less carbon emissions and $ savings, and plenty of new low-carbon business opportunities as well. The time for criticism has past.