High price on carbon a risk to economy: Ridout


The Federal Government’s proposed starting price on carbon – $23 a tonne – poses a risk to the economy, says Australian Industry Group Chief Executive Heather Ridout.

Speaking on the Meet the Press program on Network 10, Ms Ridout said the high initial price came as a shock to industry groups.

“We have not seen the blood flow through the veins on this system (carbon price scheme) yet, said Ms Ridout.

“There are a lot of risks to electricity prices, there is a lot of risk to jobs, there is a lot of risk to competitiveness and these things really need to be known, so we said you should start very slow and build-up and still enter it at a reasonably market price.

“We also believe that this price does not take account of the huge regulatory burden that’s already in place that was identified in the Productivity Commission report which already put us middle of the road in the world in terms of an implicit carbon price.

“So this is going to be layered on to an already existing carbon price that neither side of politics has really embraced getting rid of.

Ms Ridout said many AiGroup members would begin incurring higher costs from July 1 next year with no cash in the hand to pay for them.

“They are going to have to take this out of their profits and margins, Ms Ridout said.

“The other issue for business is we are not really confident how this thing can be rescinded or repealed. It is a very complex package. It looks like it will go through in its current form. “What I want to do is sit down with the Government to work out how we can ameliorate further some of these impacts, particularly when we are intent on having such a high carbon price from the get-go.”

Related news & editorials

  1. 09.03.2020
    by      In , In , In
    In May, Advanced Manufacturing Expo will be held for the first time to inspire future growth for the manufacturing industry and industrial sector. The expo’s conference and exhibition will showcase the latest advanced manufacturing production solutions and insights with dedicated solutions... Read More
  2. 23.08.2019
    by      In
    Swiss-based CNC specialist NUM has launched an innovative accelerometer-based active vibration control system for CNC machine tools. The system, primarily designed to improve machining by virtually eliminating tool head vibration, further helps increase productivity by maximising material removal... Read More
  3. 13.08.2019
    by      In
    Maintenance in the era of Industry 4.0 means a clear change of paradigm. ‘Predictive maintenance’ makes it possible to continuously monitor the status of a machine tool, which can reduce unscheduled shutdowns and the costs of failure. Instead of merely reacting to a failure or fault or carrying out... Read More
  4. 21.06.2019
    by      In
    Australian bicycle manufacturer Bastion Cycles produces high-performance road bikes that use filament-wound carbon fibre tubes and a modular design for titanium lugs. For the first three years of operation, Bastion outsourced production of the lugs to RAM3D, an additive manufacturing (AM) provider... Read More