Housing and retail lobby groups join resources sector in anti-carbon tax campaign

The Housing Industry Association and Australian Retailers Association have poured money into a carbon tax campaign, arguing it will wreak havoc on the key industries.

The pair joins the Australian Chamber of Commerce and Industry, the Australian Coal Association, Manufacturing Australia and the Minerals Council of Australia in an advertising blitz against the tax, arguing it is an “excessive response that will hit exports, slow employment growth and raise prices.”

Both groups have declined to name the size of the war chest or their contribution to it.

ARA executive director Russell Zimmerman says the industry body is concerned about added-on costs, employment, weak consumer sentiment and making Australia uncompetitive internationally.

“With the way retail has been, and downgrade in retail profits and figures, there’s a concern the carbon tax might be implemented at a time when retail has been doing it tougher than it has been,” Zimmerman says.

Stressing he supports action on climate change, Zimmerman says the policy puts Australia “a bit in front of the world” and he’d support action if the rest of the world followed suit.

He also declined to support Tony Abbott’s “direct action” plan, saying ARA would be supportive of “anything that will assist the economy as well as the employment of people in Australia.”

Meanwhile, Housing Industry of Australia chief economist Harley Dale says the body signed up because a carbon tax is the “wrong policy for Australia.”

Dale says HIA’s fundamental concern is putting Australia at an “unfair disadvantage to the rest of the world.”

He also says SMEs reliant on the housing industry for their livelihood will be hurt and warns the carbon tax will add a considerable impost on new housing developments.

Questioned on a Productivity Commission that found that Australia’s carbon tax plans would put the nation’s environmental policies in the middle of the pack for major economies, Dale notes that the commission also said there was no across-the-board scheme operational anywhere in the world.

“By that criteria Australia is out in front,” Dale says.

Dale says his concerns would be alleviated if an international agreement on emissions cuts was reached.

He added that there was considerable doubt about whether there was a global warming policy in the public domain which cut emissions while protecting jobs.

The Council of Small Business of Australia says it didn’t sign up for the campaign because nobody asked them to, but cautioned associations from claiming to represent the views of small business.

COSBOA executive director Peter Strong says small business is a broad church, and he has received contact both in support and in opposition to the Government’s plan.

What he’s calling for is more information from the Government, particularly a sector-by-sector breakdown.

“Most people are confused and when they’re confused, they resist change,” Strong told SmartCompany.

“The carbon tax, from our point of view, is something that small businesses will judge when they go out and vote.”

The Government has released Treasury modelling showing that the economy and jobs will continue to grow under a carbon tax.

A spokeswoman for Climate Change Minister Greg Combet told SmartCompany the alliance’s print advertisements were “another example of a baseless scare campaign.”

“These ads are filled with false statements which over exaggerate the impact of a carbon price in our economy,” the spokeswoman said.

“The fact is Australia is largest per capita emitter amongst developed countries and we have responsibility to take action on climate change.”

“Under the Government’s plan nine out of ten households will be assisted, jobs will be supported and we will start the transition to a clean energy future at the least cost to the economy.”

“If the alliance truly supports action on climate change, as it claims, then it should embrace the Government’s Clean Energy Plan and stop spreading fear and misinformation.”