Manufacturers and AFGC address worries over carbon tax

Nineteen leading food and grocery manufacturers and the Australian Food and Grocery Council (AFGC) have co-signed a joint industry letter to the Prime Minister raising concerns about the proposed carbon pricing scheme.

The letter, co-signed by dozens of leading manufacturing organisations and industry groups from export and import competing sectors, calls on Julia Gillard to confirm that the government will ensure Australia’s trade exposed sector will not be unfairly disadvantaged by a carbon tax.

AFGC Chief Executive Kate Carnell said: “As an industry, we don’t oppose a price on carbon - but industry is opposed to a tax that will increase the cost of food and grocery manufacturing in Australia, which is already under intense pressure. Imported products will not be affected by the carbon tax.

“These products are already relatively cheaper as a result of the high Australian dollar - so the proposed carbon tax will just make Australian products less competitive and that will cost jobs.

“Whatever decision is made, the government must ensure that Australian-manufactured food and groceries will not be made less competitive as a result of the carbon tax.

“Industry is already under pressure from rising input costs across the supply chain, such as energy, wages and water, higher transport costs, record high global commodity prices and supermarkets forcing down retail prices which is seriously impacting margins.

“If a carbon tax puts Australian manufacturing at a disadvantage, it will ultimately result in exporting Australian manufacturing jobs and exporting emissions.”