Business calls for energy cuts carrot

Canberra Times
Tuesday July 13, 2010 Page: 2

Business leaders have called on Prime Minister Julia Gillard to forget about pricing carbon for the moment and instead provide tax incentives for energy efficiency. Federal cabinet meets today to sign off on the Government's climate change policy for the imminent election. Yesterday, the Australian Chamber of Commerce and Industry released a survey showing 75% of business owners want action on energy costs. But they do not want to see either an emissions trading scheme (ETS) or carbon taxes in Australia until an international consensus can be found on climate change.

Chief executive Peter Anderson said business tax incentives should take precedence over "heavy handed" approaches to address the issue. "In the absence of a global consensus where other countries carry their fair share, the Australian Government should look to policies which are measured, practical and more carrot than stick", he said. "The recent change in Australian political leadership did not change the fact that the Copenhagen conference failed to reach a global consensus. "The Australian Government must adapt policy to this reality".

The national survey of more than 1000 businesses found that current support for an ETS was down to one in four. It also showed that business owners regarded energy costs to be their most significant infrastructure concern. The survey came as the Climate Institute Australia released a paper suggesting that uncertainty over the introduction of a price on carbon could cost Australians $2 billion a year in higher electricity prices by 2020. The research found that a decision to delay an ETS would add $60 a year to the average household bill.

Another poll, commissioned by the Australian Conservation Foundation, showed that 45% of voters would be more likely to vote Labor if it promised to deliver an ETS sometime over the next year, Ms Gillard has already stated she would be sticking to her 'predecessor Kevin Rudd's plan to revisit emissions trading in 2012 with a scheme not set to kick in until 2013 at the earliest. She has also ruled out placing a price on carbon in any other form. Instead, the Prime Minister is expected to announce this week a range of renewable energy initiatives for individuals, households and business.

Opposition Leader Tony Abbott said the Government would probably copy the Coalition's "direct action" policy for climate change. "It's now part of the style of Labor to play 'Me too' before an election", Mr Abbott said. "Labor me-tooed the Howard government prior to the 2007 election, they're now me-toeing the Coalition Opposition prior to the 2010 election". But Greens leader Bob Brown said today's Cabinet discussions must focus on how to best place a price on carbon. "Power prices are going up because we don't have a carbon price in this country and because we don't have action on climate", he said. "We're continuing to see the Greens, with a more progressive suite of policies, win greater support from the Australian public. "It's very predictable as the two other parties move to the right".