The Australian Food and Grocery Council (AFGC) has claimed that Prime Minister Julia Gillard is “wrong” to say that the Federal Government’s proposed carbon tax will not impact on food and grocery manufacturers.
Gillard has said that food manufacturers would not be affected by the carbon pricing scheme as they were not in the top-1000 polluters.
AFGC Chief Executive Kate Carnell said the PM didn’t understand the full impacts that a carbon tax will have on costs all the way through Australia’s supply chain.
“For Julia Gillard to say that food companies who aren’t in the top 1000 emitters won’t be affected by carbon tax is simply wrong,” Carnell said.
“Manufacturers will be impacted right across the supply chain from higher costs in transport, power, refrigeration and food and grocery manufacturing.”
Carnell claimed that under the proposed carbon tax, food and grocery prices are expected to rise between 3 and 5%.
“Products requiring the most energy to manufacture would see the biggest cost increases such as baked goods, dairy sugar and paper products like nappies,” Carnell said.
“The Government must ensure that Australian-manufactured food and groceries will not be made less competitive as a result of the carbon tax.
“If a carbon price puts Australian manufacturing at a disadvantage, it will ultimately result in exporting Australian manufacturing jobs and exporting emissions.”
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