The recognition and inclusion of food processing in the Coalition’s Carbon Pollution Reduction Scheme (CPRS) amendments has been welcomed by the Australian Food and Grocery Council (AFGC) today.
Under the Coalition’s proposed amendments to the CPRS legislation, key export industries will be better supported including food processing, which is Australia largest manufacturing sector worth about $100 billion a year to the national economy.
“AFGC congratulates the Coalition for its willingness to support trade exposed industries like food processing and we now urge the government to support these amendments,” AFGC Chief Executive Kate Carnell said.
Food and grocery spending represents 20 per cent of the average weekly household budget so CPRS-inflated food and grocery prices are expected to have a large impact on Australian families.
“The major dilemma with the CPRS legislation industry is it will mean the cost of power will rise significantly – while industry is doing its best to reduce power use, the CPRS will ultimately impact upon prices on supermarket shelves,” Ms Carnell said.
Under the current legislation, Ms Carnell said people were more likely to buy cheaper imported goods because home-grown manufactured food and groceries were expected to rise on supermarket shelves by as much as five per cent.
Ms Carnell said goods imported from countries in Asia would not be affected as they are unlikely to be subjected to a carbon charge in the foreseeable future.
“This means Australian manufactured goods will be at a major disadvantage and jobs will suffer,” Ms Carnell said.
“I remind Kevin Rudd of his own words that he ‘didn’t want to be Prime Minister of a country that didn’t make anything’ – so we must to get the CPRS right or that’s exactly the type of country we will live in.”
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For more information: AFGC Media Adviser Brad Watts (02) 6270 9021 or 0437 379 818.
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