Just Who Wants a Tax on Carbon?

6 Aug 11

Australia's manufacturers which are primarily made up of SME's overwhelmingly oppose the introduction of a tax on carbon emmissions, AMTIL Member Services and AMTIL ManufactureLink manager Peter Lambe reports.

As reported in this years edition of AMTIL-The Source the government is already acting to suppress manufacturing in order to balance the growth of the mining industry and some sources indicate that the government believes that it is inevitable that manufacturing will shift to low-wage countries.

AMTIL-The Source further reports that to allow the demise of manufacturing will condemn Australian's to low wage futures, as manufacturing and engineering skills, which Australian's are renowned for, disappear. Manufacturing is still the only sector where employees can earn middle class incomes with minimal educational requirements.

Manufacturing represents 9.4 per cent of GDP whilst the mining industry contributes 7.7 per cent. Manufacturing represents 10 per cent of Australia's workforce whilst the mining industry represents only 2 per cent of Australia's workforce.

The Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI) fell 9.5 points in July to 43.4. This followed a 5.2 point rise to 52.9 points in June. (Readings below 50 indicate contraction in activity).

So what is the government doing to support manufacturing, as it faces the multiple challenges of a high Australian dollar and tough overseas competition, political and economic uncertainty?

It wants to introduce a world leading new tax on carbon in a country whose our global emissions footprint is about as significant as a speck of dust.

Just who will benefit from the introduction of a tax on carbon is a question where we are yet to see any definitive answers.

AMTIL-The Source is an annual yearbook for the advanced manufacturing industry produced by AMTIL who are also the producers of the renowned AMT Magazine. To order a copy of AMTIL-The Source click here.