Carbon decision to hit business

25 February 2011

The State’s leading business membership organisation, Business SA, has expressed concern at the Government’s announcement to introduce a carbon tax from 2012.

Business SA Chief Executive Officer, Peter Vaughan, said that the tax should not be introduced before a binding global agreement.

“The decision to introduce a carbon tax will provide a major blow to the business community and overall competitiveness,” Mr Vaughan said.

“These new energy costs on households and small businesses will affect confidence throughout the economy.

“As costs go up, prices will follow and this will make businesses less competitive and put jobs at risk.

“Here in South Australia, we have many small businesses throughout the State who will struggle to absorb these extra costs in doing business.

“With most other countries not having carbon taxes across the economy, it will make our businesses less competitive and see more jobs move offshore.

“Businesses expected the Government to hold its word after what was said about carbon tax prior to the 2010 Federal election. When does ‘no’ suddenly mean ‘yes’.”