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Carbon tax biting into food and grocery industry



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SOPHIE MIRABELLA MP Federal Member for Indi

Shadow Minister for Innovation, Industry and Science

MEDIA RELEASE

Media Contact: John Polack 0410 482 261

29 July 2013

CARBON TAX BITING FOOD AND GROCERY INDUSTRY, SAYS AFGC SURVEY

The Australian Food and Grocery Council’s ‘Impact of Carbon Tax Survey’ reveals that, a year on, the carbon tax has increased the operating costs for 95% of the businesses in the food and grocery sector.

The Coalition warned that the carbon tax would send jobs offshore, and now this survey confirms that over 10% of the industry’s production has shifted overseas as a direct result of the carbon tax.

A total of 67% of participants in the survey have also confirmed that their viability is being further eroded because they are unable to pass through the costs of the carbon tax.

“Food and grocery processing is Australia’s largest manufacturing sector - but its operations, size and viability are clearly all now being dramatically eroded because of the carbon tax,” said Shadow Industry Minister, Sophie Mirabella.

“The AFGC’s survey provides obvious proof of the misguided and adverse impact of imposing a ‘reverse tariff’ on Australian industries, especially whilst international competition has been intensifying.

“Regrettably, Labor’s decision to impose its carbon tax on the local food and grocery industry has also come at a time when Australia has become a net importer of food and grocery products for the first occasion in living memory.

“At the coming election, it will be only the Coalition that will offer increased food security for Australians and sustained relief from Labor’s assortment of costs, regulations and taxes (including the carbon tax) for Australian food, beverage, agribusiness and grocery firms.

“Only an Abbott Government will deliver a zero carbon tax, help reduce the cost of making things in this country, and keep jobs in Australia.

“Labor’s recent policy fiddles will still slug the Australian economy with a $58 billion carbon tax, reducing local business competitiveness and hastening the export of Australian jobs.”