AiGroup ‘deeply disappointed’ in carbon legislation


New climate change legislation will add significant costs at a time when business can least afford it, according to the Australian Industry Group (AiGroup).

Australian Industry Group Chief Executive, Heather Ridout says the passage of the legislation through Parliament with a high starting price and no flexibility to adjust the price in the initial years is “deeply disappointing.” 

“This is especially so given the extremely uncertain and weak global economic conditions and the volatility of global carbon prices,” said Ms Ridout. 

"Ai Group has long argued that the high starting price during the three-year fixed price period is a very serious issue, she said.

"The downward pressure on the European price in response to economic circumstances is testament to the need for a more flexible approach. For Australia not to show willingness to adjust to this changed context is very concerning.

"The legislated prices in Australia for the fixed period are close to double those in the major international markets, the European Union Emissions Trading Scheme and the Clean Development Mechanism. Australian businesses will experience a marked disadvantage even when they are competing with businesses in countries that also impose an explicit carbon price.  It begs the question, what happens if the world price goes even further below the Australian price?”

Ms Ridout said the legislation effectively doubles the burden faced by Australian businesses by imposing an explicit price without removing the pre-existing implicit prices imposed by the plethora of carbon reduction measures in operation at both State and Federal levels.

"Outside the resources sector, business is doing it tough in the face of a persistently high dollar, cautious consumers and global jitters, Ms Ridout said. “While strong compensation is provided to most households and offsetting arrangements are proposed for some businesses, many businesses in the industrial sector will be acutely exposed to a shock to their competiveness. The Government has decided to hope that these impacts will be modest. Time will tell.”


  1. Made a program change you wish you hadn't? Lose the only copy of the device program? Not sure if the program running is the right one?
    Control Logic’s ‘Vault’, powered by MDT AutoSave Change Management software, is a plug-and-play system to help reduce errors and downtime, increase productivity,...
  2. tank
    A collaborative partnership between Lockheed Martin, Australian manufacturer Omni Tanker and the University of New South Wales (UNSW) will look to develop and commercialise world-first composite tank technologies, thanks to a grant from the Federal Government’s Advanced Manufacturing Growth Centre...
  3. 3D printer
    Obsolescence is an unavoidable part of any manufacturing environment. However, it’s concerning that nearly 70% of companies admit they do not know when vital equipment requires replacing, or when they do, they scramble to find replacements. Here, Claudia Jarrett, country manager at automation parts...