News

Showing 1 news story in Motoring News

News Categories

Will Carbon Tax Murder Motoring?

In Motoring News

By system on Saturday, 25 June 2011

Can the proposed Carbon Tax by Labor kill off our Australian Motor Industry for good – probably. A report prepared on behalf of the Australian motor industry by PWCA, stated that a carbon tax could add between $222 and $412 to the cost of each car made in Australia if the carbon price is set at between $20 and $30 a tonne, costing the $6.2 billion domestic automotive industry was likely to be up to $84 million.

The report warned that additional cost burdens could seriously threaten plans for growth in the automotive industry, which it described as “vulnerable”. The opposition leader Tony Abbott used the figures during a visit to Ford’s factory at Geelong in Victoria recently to raise the spectre of lost jobs in the motor industry due to Labor’s carbon tax. “If the carbon tax turns out to be the nail in the coffin of the motor manufacturing industry in this country, that spells disaster for Australia as a first-world economy,” he said. “We want to be a country that makes things, and the risk with this carbon tax is that we will stop being a country that makes things any more – an absolute disaster for Australia.”

PWCA warned in its report that the local automotive industry was likely to have little or no ability to pass on any additional cost burden, due to the highly competitive international market. It said the three local manufacturers were likely to source components from international markets to avoid incurring a carbon price within automotive products.

“The automotive industry is a highly value-adding industry, and a reduction in its competitiveness in the global automotive market could ultimately result in a loss of these value-adding activities offshore,” the report concluded.

It is not only the Motor Industry that will be killed off with the loss of jobs, overall manufacturing in Australia is going to be put in the same situation with inability to compete against other countries without the Carbon Tax, thus wiping out more jobs and businesses.

And not only will you have to buy products from overseas and you may lose your job, all of your household bills will be increased as well including electricity, gas and fuel. Australians appear slow to stand up to the prospect of this carbon tax and Labor, but in another recent survey of 1200 NRMA Motoring & Services members, 60% of respondents will steer clear of the Labor Government in the next election if its proposed carbon tax leads to yet another walloping at the bowser.

The survey showed that most Australians (87%) are already dealing with a cost of living that is higher than 12 months ago, with two-thirds suffering from stress as a result. Just 24% of the 1200 respondents said they would support the introduction of a carbon tax. The Labor Government plans to implement a carbon tax from July next year, with an emissions trading scheme to follow in the next three to five years.