Queensland's carbon tax disadvantage can only be fixed by repeal or global agreement - CCIQ

THE Federal Government must deliver a global agreement to cut carbon emissions to ensure Queensland businesses are not placed at a competitive disadvantage, according to the Chamber of Commerce and Industry Queensland (CCIQ).

 

CCIQ President David Goodwin said the Queensland business community acknowledged that it had a responsibility to minimise the impact that its activities had on the environment and supported action on climate change.

However, he said global action, rather than the Federal Government's "go it alone" approach, was needed.

"Overwhelmingly the majority of Queensland businesses do not support the introduction of a Carbon Pricing Mechanism (CPM), especially in the absence of international agreement and commensurate action to address climate change," Mr Goodwin said.

"The Federal Government has ignored the pleas of Australian businesses and has instead introduced the carbon tax and placed businesses at a further competitive disadvantage in the global economy.

"Queensland faces the greatest impacts from the introduction of a carbon price.  Key industries will be heavily impacted by the proposed CPM through higher energy prices and transportation costs which are compounded as a result of Queensland's decentralised economy and large geographical area.

"To date there has been minimal commensurate international action on climate change compared to Australia's proposed CPM and a forthcoming loss of international competitiveness is guaranteed."

Mr Goodwin said CCIQ had called for the Federal Government to "go low and start slow" but it had chosen to start with a carbon price twice as high as Europe.

"Now that the Federal Government has locked us into a carbon-taxed economy, the Prime Minister must secure a global agreement on pricing carbon emissions," he said.

"This is a global problem that requires a global solution. The notion that Australia, as one of the smallest carbon emitters, can be the leader on this issue is foolhardy and unrealistic.

"The only way the Federal Government can reduce the competitive disadvantage it is placing on Australian businesses is to rescind the carbon tax or secure a global agreement that places the same costs on overseas businesses as it does on Australian businesses.

"The impact of a CPM will range between having a moderate to critical impact on businesses in the areas of profitability, employment and investment.  Alarmingly a significant number of businesses believe forthcoming increases in energy prices will threaten their viability.

"Poor trading conditions at present for Queensland businesses means there is virtually no prospect at passing on associated cost increases," Mr Goodwin said.

"Placing a new tax on the economy at this time on top of Australia's already high costs base is a recipe for businesses either shutting down or moving off shore and for taking jobs with them.

"Compounding this dire situation is small and medium sized businesses have been overlooked in proposed compensation arrangements."

Founded in 1868, CCIQ is the peak association for the state's employers, providing support, advice, training and advocacy for more than 25,000 businesses.

www.cciq.com.au

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