Carbon Tax Repeal is Good News for Food and Grocery Manufacturing

The Australian Food and Grocery Council (AFGC) has welcomed today’s Senate vote to repeal the Carbon Tax.

AFGC CEO Gary Dawson said the speedy pass through of savings by electricity, gas and refrigerant gas suppliers to their customers would help ease the severe cost pressures on manufacturers.

“I congratulate the government for holding its nerve and seeing through its key election promise, delivered today with the repeal of the carbon tax.

“For a trade-exposed sector like food and grocery manufacturing the carbon tax was a direct hit to the competitiveness of companies putting them at a disadvantage to international competitors who were not subject to the tax.

“Industry surveys found that food and grocery manufacturers had little or no ability to pass through the higher costs flowing from the tax and therefore took a direct hit to their viability.

“A number even considered moving production offshore as a result.

“We urge energy and refrigerant gas suppliers to quickly pass through the savings from the removal of the tax. Food and grocery manufacturing has never been under such intense competitive pressure from high costs and retail price deflation and urgently need some relief from high utility costs.”

“The food and grocery manufacturing sector remains committed to the environment and has demonstrated that through initiatives such the AFGC’s Sustainability Commitment which has set ambitious targets including a ten percent reduction in energy and 20 percent reduction in carbon emissions by 2020,” concluded Mr Dawson.

 

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More information: Natalie Wimmer 0450 728 660