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Govt fails to calculate ETS impact on basket of groceries

Posted by: [deleted]1248313515.919.7 on Mon, 15 December 2008 20:34:45

Peak retail industry body the Australian Retailers Association (ARA) said the Government’s estimates that an emissions trading scheme (ETS) would increased the cost of living for Australian families by less than 1.1 percent are misleading and ignore the increased cost of groceries.

ARA Executive Director Richard Evans said after retailers have repeatedly asked for clarification about the impact of ETS on retail goods, Australia's Low Pollution Future White Paper released today still failed to answer growing concerns about increased grocery bills for working families.

"The retail sector is committed to reducing carbon emissions and accepts ETS is the way forward but the White Paper's estimate that ETS will only cost Australian households up to $2 - 4 per week for electricity and gas is deceptive. Once again the Government has failed to answer the simple question: ‘What is the impact of ETS on a basket of groceries?'

"Retailers have been asking this question since the Green Paper was handed down in July and then again when Garnaut Climate Change Review presented its final report in September.  We posed the same simple question a third time when the ETS Treasury modelling was finally released in October and failed to accurately calculate retail price impacts on consumers," Evans said.

"Retailers are high energy users (especially when refrigeration is taken into account) and they are also the catchment point for ETS price impacts passed through the supply channel, but this has been completely ignored in the Carbon Pollution Reduction Scheme.

"The Government's white paper recognises carbon costs will be incorporated in the prices of goods and services and will ultimately be borne by consumers, but they fail to accurately calculate this impact. Working families are not receiving a clear message about price increases to retail goods and groceries under the proposed ETS.

"This debate is not about the environment - retailers support carbon reduction measures. It's about economic modelling and as yet retailers and consumers, who will wear the financial burden, are yet to be adequately considered.

"Retailers are supportive of government goals to reduce carbon emissions - we're simply urging decision makers to carefully and accurately consider the economic impacts of any carbon pollution reduction scheme instead of pushing through an ETS with ideological haste," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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