Automotive to bleed $30m from carbon tax hit

The automotive industry will pay $30 million as a result of the government’s carbon tax, according to the Federal Chamber of Automotive Industries (FCAI).

FCAI chief executive, Andrew McKellar, said Australian manufacturers were already “bleeding from the eyes” before the carbon tax package was announced last Sunday.

Once it starts, from July 1 next year, things will get much worse for Australia’s trade-exposed automotive industry, McKellar said.

The treasurer, Wayne Swan, hasn’t said how the government expects the carbon tax to affect Australian-made cars.

Shadow Innovation Minister Sophie Mirabella claims the government is turning a blind eye. 

“The Government has ignored the fact that our car industry is trade exposed, making imported cars cheaper and more attractive to the consumer,” she said. 

“Australian car makers will now be forced to increase their prices as their competitiveness is undermined. 

“Holden CEO, and President of the FCAI, Mike Devereux, has previously warned that the future of his company and its 4,700 jobs in Australia is now under review because of concerns about sovereign risk – including as a result of the looming carbon tax. 

“Miss Gillard’s carbon tax is bad for manufacturing, bad for jobs and bad for investment. Her carbon tax is putting a tariff on Australian car makers, and Australian manufacturers, making them less competitive. 

“The Labor Party has turned its back on Australian manufacturing and generations of Labor-voting workers.”