BUSINESS representatives from each sector of the Australian economy today urged the Federal Government to reverse its new carbon tax.
In a resolution passed by the Australian Chamber of Commerce and Industry’s (ACCI) general council in Brisbane, more than 300,000 employers renounced the $23 a tonne price on carbon as “futile” and poorly timed.
“It is a particularly bad time for the economy as manufacturing, construction and retail remain vulnerable without the further burden of a carbon tax,” says economics and industry policy director Greg Evans (pictured).
“We are seeing very slow levels of business and consumer confidence with 80 per cent of the economy experiencing very subdued trading due to continuing international instability.”
ACCI’s latest survey of investor confidence backs this view, showing profitability fell to historically low levels in the past 12 months.
“Consumers prefer to reduce debt than spend. Business margins have been squeezed since they have very little pricing power and face escalating wages and energy prices,” says Evans.
“Manufacturing and other industries are under so much pressure that job shedding is taking place. Even when employment levels are unaffected, businesses may defer or divert investment – forgoing sale opportunities.”
ACCI suggests microeconomic reforms to reduce structural adjustment costs of the carbon price and adverse impacts on competitiveness – and costs imposed on small to medium enterprises.
Read the essential guide on how to avoid any gloom associated with the new Carbon Tax by getting your copy of Gold Coast Business News magazine – at newsagents now.