Manufacturer Frank Kaiser appeared on ABC’s Q&A program last night to ask Minister for Finance and Deregulation, Penny Wong, about the real of costs of a carbon tax for small Australian manufacturers.
Below is a transcript of Kaiser’s questions and Minister Wong’s response.
Frank Kaiser: This question is directed to Penny Wong. As a manufacturer employing 23 people what compensation is going to be offered to small business to offset the increase in electricity, raw material (steel), fuel and on top of that an increase of 3% in super contributions? All of these are increases on the table now. Are there more to come once the impact of the government’s carbon tax is announced or can the government recommend a good liquidator?
Penny Wong: Well first, there are many reasons, some of which you alluded to, that manufacturing is under pressures and obviously the high dollar is amongst them which I assume is impacting upon your business just as it is as many others.
One of the many reasons why we want to put a mining tax in place to defuse a range of things, such as a reduction in company tax rate, because we recognise a lot of investment in mining that is having an affect on things like the dollar, and which obviously, for people not in the mining boom, creates some pressures. So this is about how you try and use the resources in that boom and put it into sectors like yours (Frank).
Look, I understand there is a lot of fear about there about pricing pollution and I understand that it’s very easy for us to find a reason each time to not do it. What I say is this, its quiet clear climate change is real, its quiet clear it being contributed to by what we put into the atmosphere, and as long as pollution it free, we will continue to pollute and unless we start to put a price on pollution that gives the signal across the economy to move to clear ways of doing business, clear ways to generate energy, we will simply continue to be one of the highest polluting countries on the face of the earth.
Tony Jones: Penny Wong, cabinet had decided to release details on the carbon pricing details this coming Sunday, we know that high trade exposed industries are going to get compensated, the question here is whether the small industries facing flow on extra costs are going to be compensated?
Penny Wong: I will say first, we have said that on Sunday we will be announcing the policy that has been put together through an exhaustive process of negotiation and obviously you will be able to see how we have looked at all the different issues, you (Tony) mentioned the emission trade exposed sectors, that is companies that are operating in the world markets that can’t pass the price on and that’s obviously something that we’ve been very clear about, that we need to support jobs. The way we’ve been approaching this is that you have to price pollution but you also have to project jobs and also protect household budgets.
Tony Jones: let’s go back to our question earlier, (Frank), you’re going to get the details on Sunday but are you are you satisfied with what you’re hearing?
Frank Kaiser: There is nothing I’m hearing from us is giving any confidence in the market place for people to come and buy from us. Everyone is sitting on their money waiting to see.
LISTEN and VIEW last night’s Q&A program.