At long last, the Gillard Government has unveiled its Clean Energy Package, which will be introduced in July 2012. Through implementation of the plan, the government aims to cut carbon pollution, drive innovation, and avoid the increased costs of delaying action on climate change..

Under the plan, Australia will cut 159 million tonnes a year of carbon pollution from our atmosphere by 2020 – the equivalent of taking over 45 million cars off the road.

The carbon price – announced at $23 per tonne – will change Australia’s electricity generation by encouraging investment in renewable energy like wind and solar power, and the use of cleaner fuels like natural gas.

According to the Gillard Government, Australian households “will be looked after under a carbon price, with tax cuts, higher family payments and increases in pensions and benefits set to help people meet the costs passed through by some businesses.”

It has announced that over half the money raised from the carbon price will be used to assist households. Nine out of ten households will receive a combination of tax cuts and payments to help with the costs of the carbon price.

We take a look at how some of the country’s industry and community groups have responded to the carbon tax announcement. 

The conservation sector:

Queensland Conservation (QCC) has welcomed the introduction of a carbon tax from 2012.

“The key purpose of a Carbon Tax is to reduce greenhouse emissions and invest in transition to a clean and safe future. That is the goal that must be achieved,” said Toby Hutcheon, Executive Director of QCC .

However, QCC has warned that assistance to high emitters must not prevent those industries from equitably reducing their emissions.

“As one of the most vulnerable regions in the world to the impacts of climate change, Queensland’s future is completely dependent upon emission reductions and economic transition. With the highest per capita emissions in the developed world and as the largest coal exporter, Queensland must recognise that the world is shifting away from fossil fuels,” Mr Hutcheon said.

The health sector:

“The health and wellbeing of the Australian and global community depends on taking effective action on climate change,” said Fiona Armstrong, Convenor of the national coalition of health groups, the Climate and Health Alliance (CAHA).

According to Ms Armstrong, the package represents an important first step in developing a responsible climate policy for Australia.

“The development of this package and its passage into law will send an important message to other nations that Australia is creating the foundation for accepting our fair share of the global responsibility to reduce emissions,” Ms Armstrong said.

Ms Armstrong also believes that Australia has a moral obligation to future generations to ensure future economic security.

 ”It would be morally reprehensible to make a decision to continue to increase emissions now and leave our children to deal with the consequences from our destruction of their natural capital – and denying them future economic security and a stable and civilized society.”

She also says there aremany health benefits possible from effective action on climate change.

“Not only will we reduce the adverse health effects from climate change, but we can realise other important co-benefits, such as preventing respiratory and cardiovascular diseases by shifting to clean renewable energy generation systems,” Ms Armstrong said.

The Uniting Church of Australia:

 “I am pleased today to see the Australian Government finally announce a strong program for addressing dangerous climate change and moving Australia to a clean energy future,” said Rev. AIistair Macrae, President of the Church.

“This is a historic moment for Australia, together as a nation we are taking up the international challenge of responding to climate change and protecting God’s earth for future generations. 

 “The Uniting Church believes that strong and swift action on climate change is indeed one of the greatest moral challenges of our time. As Christians, we believe that God’s will for the earth is for renewal and reconciliation, not destruction by human beings,” said Rev. Macrae.

Rev. Elenie Poulos, National Director of Uniting Justice Australia, has particularly commended the package of measures for:

• the compensation packages for low income households and vulnerable Australians
• the commitments aimed at supporting the research, development and use of renewable energies, and
• the multiple programs supporting Australia’s transition to a low carbon economy and sustainable future.

“We consider the $23 per tonne starting price on the low side and are also disappointed about the weak signal for reducing pollution from our most highly polluting sectors. We are, however, pleased with the long-term target of an 80% reduction on 2020 emission levels by 2050. This will help to ensure that Australia makes a good contribution to addressing global warming.”

The farming sector:

From an agricultural perspective, the vegetable industry is not so enthusiastic about the government’s plans to put a tax on carbon. According to John Brent, the Chair of AUSVEG – the national peak industry body for Australian Vegetable Growers – there appears to be little understanding of the difficulties facing growers

“Electricity is critically essential to food production; without it irrigation can’t be operated and produce can’t be refrigerated. Any increase to electricity prices will have further adverse impacts on the bottom line of these businesses” Mr Brent said.

Mr Brent is also concerned about the impact the tax will have on the competitiveness of Australian produce on the marketplace.

“We are pleased that some assistance will be forthcoming for the food processing sector that is rapidly diminishing and moving offshore. We are worried, however, that our overseas competitors will have another advantage when selling produce into the Australian markets.”

“When you walk down the aisles of at least one major supermarket chain, you will now struggle to find any Australian produce amongst their frozen vegetable selection. Is this what we want-a total dependency on overseas suppliers for Australian food?” Mr Brent said.

The mining sector:

According to the NSW Minerals Council,  NSW miners have been hit hard by the carbon tax which will threaten their jobs and do nothing to help reduce global emissions.

“We’re 100% behind action on climate change, but you have to ask whether this is really about cutting emissions or cutting jobs and taxing the mining industry out of business,” Dr Nikki Williams, CEO of NSW Minerals Council said.

“In addition to the carbon tax, a tax hike on diesel announced today is yet another nail in the coffin; another 17% on top of the new mining tax, royalties, company tax and other fees that mining companies pay.

“We need to understand the detail, but it’s starting to look like death by 1,000 taxes for the mining industry. The Greens, who have drawn up this tax with the government, say they want to shut down the coal industry and this puts us on the path to that economic wasteland.”

The manufacturing sector:

The Hunter and Central Coast are well-placed to see growth in manufacturing jobs over the next decade due to the carbon tax package, said the Australian Manufacturing Workers Union.

The package, including support for existing emissions-intensive industries and a low emission industry and technology fund, positions manufacturing for a strong future, said AMWU State Secretary Tim Ayres.

“Putting a price on carbon and backing it up with support for commercialising low emissions technologies and energy efficiency solutions opens up real opportunities for manufacturing.

“The Hunter and Central Coast have a lot to offer: a strong and diverse industrial capability, a highly skilled workforce and a proven track record in innovative, world-class manufacturing.

“The Hunter is also the energy capital of Australia, with huge coal, solar, wind and geothermal reserves.

“As the carbon tax encourages industry to cut its reductions, we’ll also see new emissions-reducing technologies invented and we now have the support mechanisms in place now to see those new ideas commercialised in manufacturing regions like the Hunter.

“This package gets the balance right. Industry now needs to step up to the plate and invest in a low-emissions future – while all levels of government need to take measures to ensure manufacturing stays in Australia.”

The retail sector:

The government’s carbon tax policy will weaken the Australian economy and embed and redistribute costs for little if any environmental gain, according to Australian Chamber of Commerce and Industry Chief Executive, Peter Anderson.

“Unfortunately, the environmental gain the government is looking for through innovation and changed business and consumer behaviour will be very limited because this is a tax that gets passed on, coupled with widespread compensation to protect people from it,” Mr Anderson said.

“Economically, the tax is a harsh blow to import and export competing businesses, especially small and medium businesses. Our international competitors get a free kick, of our own making.

“The carve outs and industry compensation packages, while sensible for those sectors, move the total tax cost around the economy, forcing other sectors like most small business to pay proportionately more,” Peter Anderson said.

“Business and ACCI believe action should be taken on climate change, but action that is effective and least cost. On a whole of industry basis, today’s package is an economic mistake, despite some service sectors, like professional services in the built environs or banking and legal services, possibly securing new work.

“Our concern is that employment is likely to be the first area affected as many of these enterprises struggle to find cost savings,” MrAnderson said.

According to Australian National Retailers Association (ANRA) CEO Margy Osmond, consumer confidence will determin how retailers react to the carbon price.

“Retailers will be looking to Government to sell this well if the retail sector has any hope of struggling out of the economic doldrums, illustrated this week with retail figures taking a dive to -0.6%.

“Confidence is at a two year low and retail figures have reflected that. Much of the uncertainty around the carbon price may now lessen, but the negativity of the „anti‟ campaign will continue and that may be enough to convince Australians they need to keep saving their pennies.

“There is some hope the prospect of compensation lump sum payments anticipated for mid next year will help lift Christmas sales this year, and we certainly hope that is the case.

“However, retailers, like all Australian households, will be looking closely at the details announced today to get a good understanding of how this new price will impact on their businesses,” Mrs Osmond said.

The renewable energy advocates:

The community 100% Renewable Campaign has welcomed the renewable energy commitments delivered by the carbon price package and called for them to be rolled out as soon as possible.

“When you combine the new additional funding, the independent governance structures and the planning for a 100% renewable energy grid, you can see that the Multi Party Committee has been serious about setting a course for a renewable energy-powered future for Australia,” said Lindsay Soutar, Campaign Coordinator for 100% Renewable Energy.

“Funding for renewable energy has been a political football for too long. Now that these measures have been announced it is imperative we get moving and see the money start flowing as soon as possible.”

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