AFGC Pleads for Transparency from the Government


The Carbon Taxation Scheme has been announced,
and different sectors of the community
are having their say.

Without a doubt the companies that produce 25, 000 tonnes of carbon dioxide per year or more will be penalized, although certain industries will be exempt, including agriculture and forestry. 

When it comes to the Food Industry there is consensus that this tax will affect the cost of food and grocery manufacturing all along the supply chain.

AFGC Chief Executive Kate Carnell said the cost increase will predominantly result from the high price of power.

“The Government carbon tax will increase the cost of Australian manufactured goods – but will not affect imports, which are already cheaper due to the high Australian dollar,” Ms Carnell said.

“AFGC is perplexed by Treasury figures announced today by the Prime Minister, regarding the price rises of food and grocery products on supermarket shelves.  The Treasury modelling appears not have been released – we urge them to release these figures.”

The AFGC were pleased with exclusion of a tax on transport fuel, which will help offset supply chain costs for heavy on-road vehicles in transporting food and groceries.

“However this is only a short-term measure and after three-years, industry can expect to pay,” Ms Carnell said.

Industry also welcomed the Clean Technology Food and Foundries Investment Program – which provides $150 million over six years in assistance to industry to become more energy efficient.

“We are particularly pleased the Government acknowledged this amount of money may not be enough and indicated if it’s expended, industry will be able access extra funding,” Ms Carnell said.

Ms Carnell said AFGC lobbied the Government to increase the $150 million package that was also part of the CPRS, as we believed it would not be sufficient for a $102 billion industry, which is already investing heavily in technology to reduce environmental impacts.

Under this program, funding will be provided on a co-investment basis, with industry contributing three dollars for every dollar from Government.  “This could make it difficult for smaller manufacturers as the cost of becoming more energy efficient are often very high.”

“At the end of the day, there will still be price increases right across the supply chain and this will impact on the competitiveness of industry,” Ms Carnell said.  (source)

The statement in the above press release which grabbed my attention was:  “AFGC is perplexed by Treasury figures announced today by the Prime Minister, regarding the price rises of food and grocery products on supermarket shelves.  The Treasury modelling appears not have been released – we urge them to release these figures.”

This is not something unusual for Government Departments to do. I myself wondered where Wayne Swan came up with his various pricings in relation to what would escalate when the Tax came into force next year. Do these expected price hikes also include the cost of freighting them? Maybe petrol is initially exempt, but it is not going to remain that way for the transportation industry.

The Government expects the following price increases after the carbon tax is introduced:

* Weet-Bix cereal to rise by 0.00024 cents per biscuit.

* An $11 packet of mince meat will rise by 4c

* A $3.75 fillet of ocean trout will increase by 1.5c

* A loaf of bread will rise 0.016c

* Tim Tams will rise 0.012c

* A standard jar of coffee will rise 0.02c

* A 250g tub of margarine will increase 0.016c

* A six pack of beer will rise 0.026c

* A box of tissues will rise 0.004c

I wonder where Wayne Swan does his shopping. I have not seen a filet of ocean trout on sale in my area for $3.75. He can keep his Tim Tams, just tell me where I can get the trout!

Transparency Please Mr. Swan!

 

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About JustMEinT Musings

I like writing, reading and expressing my opinions. I prefer natural health and healing to pharmaceutical drugs. Jesus Christ is my Lord and Saviour.
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