KIC plans formal carbon tax position

The Kwinana Industries Council is to produce a formal position on the Federal Government’s proposed carbon tax once consultation with members was completed, director Chris Oughton said.

Mr Oughton said the council acknowledged the scientific consensus on human-induced climate change but many of the companies operating in the Kwinana industrial area were exposed to internationally competitive markets.

He said a carbon tax for trade-exposed companies was an additional cost of production, which ultimately was passed on to the customer, as was the case with any business.

The council would prefer policy responses to be based on market mechanisms (such as trading) in preference to regulation or taxation, and action to be gradual and spread broadly across the economy.

Also, he said transitional issues, such as the effects on energy-intensive trade exposed industries, needed to be addressed early so as to not cause problems in the economy.