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.”

Related news & editorials

  1. 18.07.2018
    by      In
    3D printing with metals is affecting the way manufacturing occurs, and Australian distributor Raymax Applications reckons this is amply demonstrated by the application of SLM Solutions machines in metal manufacturing processes.
    SLM Solutions Group recently released its fourth generation 280 system... Read More
  2. 16.03.2018
    by      In
    In the 1960s, as much as a quarter of Australia’s workforce was employed in the manufacturing sector, and the industry fuelled 25% of the nation’s economy, according to the Productivity Commission. Half a century on, the closure of Toyota, Ford and then General Motors in October 2017 seemed to... Read More
  3. 24.01.2018
    by      In
    According to Southern Cross CEO, Mark Ferguson, if Australian industry really wants to get serious about saving energy then it needs to take a close look at ‘two-stage’, air compressor technology. As energy costs continue to outstrip other business input expenses it is critical, more than ever... Read More
  4. Martin Chappell
    by      In
    With Australia’s manufacturing industry strengthening, leaders and heads of IT are weighing up which new technologies they should implement to gain a competitive edge. Martin Chappell from Motorola Solutions explains how a simpler and more focused use of data can be the best approach.
    Australia’s... Read More