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Retailers ask again: What impact will ETS have on goods and groceries?

Posted by: [deleted]1248313515.919.7 on Fri, 31 October 2008 13:52:37

Peak retail industry body the Australian Retailers Association (ARA) said the Government’s announcement that its emissions trading scheme (ETS) will be affordable for Australian households at $1 a day fails to accurately calculate retail price impacts on consumers.

ARA Executive Director Richard Evans said the long- awaited ETS Treasury modelling released yesterday didn't provide answers to concerns about the price impacts on retail goods and groceries for working families.

"The retail sector accepts and understands ETS is the way forward but they also know that price impacts will be passed through the supply channel to the retail catchment point and will ultimately be borne by consumers. This means the price of all retail goods and groceries will increase for working families and consumers aren't receiving this message.

"The message from the Rudd Government yesterday that ETS will only cost Australian households up to $7 per week for electricity and gas is deceptive and fails to answer the simple question: ‘What is the impact of ETS on a basket of retail goods and groceries?'

Evans added the Government's ETS compromised the domestic and international competitiveness of Australia's manufacturing sector.

"Yesterday Minister for Innovation, Industry Science and Research Kim Carr called for consumers to buy Australian made products and support local business. However, current ETS modelling will see Australian-made products become less competitive against imported goods which won't be affected by carbon tax.

"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. If the Rudd Government can't get the economic analysis around ETS right, one has to question the accuracy of the Treasury modelling.

"Instead of holding a steady hand to the wheel of legislation at a time where retailers are struggling after successive months of stagnant and declining growth, the Rudd government is now pushing through ETS with ideological haste. 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," 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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