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Local families face grocery price hike under Rudd's Emission Trading Scheme.

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Federal Member for Wannon

Hamilton Office 190 Gray St, HAMILTON VIC 3300 Warrnambool Office 73 Kepler St WARRNAMBOOL VIC 3280 Freecall 1300 131 692 E W

Federal Member for Wannon

18 August 2009


Western Victorians will be hit hard by grocery price increases of up to seven per cent as a result of the Rudd Government’s Emission Trading Scheme, Federal Member for Wannon David Hawker said today.

“The Coalition and key independents voted down Labor’s flawed and friendless ETS in the Senate last week, based on the fact that the scheme will cost Australian jobs and has no real benefits for the environment,” Mr Hawker said.

“Disappointingly, Rudd Labor is stubbornly refusing to negotiate a smarter, greener scheme with the Coalition and is determined to bring back the same flawed legislation later this year.”

Mr Hawker said economic modelling released this week reveals Labor’s ETS will increase the cost of groceries by at least four per cent and up to seven per cent.

“Kevin Rudd is rushing his Emissions Trading Scheme through Parliament without any consideration for the impact on Australian consumers,” he said.

“He has been breathtaking in his arrogance towards any individual or organisation that proposes an alternative approach to cutting carbon emissions.

“What has been revealed this week is that low and middle income households are going to be hit the hardest by the Rudd ETS. That’s because whilst households will receive some compensation for the increase in their electricity costs, the compensation offered will fall far short of helping families with the increased costs they will face,” Mr Hawker said.

“This will severely impact all low and middle income earners, but I fear the most for pensioners and Newstart recipients.”

Mr Hawker said Labor’s ETS basically represents a tax on all food.

“Local farmers and horticulturalists will have no choice but to pass on the substantial increase in production costs and local families will pay the price,” he said.

“The double whammy of Rudd’s ETS is that local produce will struggle to compete with imported products.

“Because Kevin Rudd wants to go it alone without being part of a global agreement, Australian products will not be able to compete on a level playing field. That will cost local jobs.

“And the real tragedy is that until there is a global agreement, whatever Australia does will have no real impact on saving the planet.” - ENDS -

Media contact: Jane Templeton (02) 6277 4118