Grocery industry "backs Coalition on ETS"

5% increase at least

The grocery industry has rubbished the government’s forecasts on price increases, claiming that they will rise far more than predicted:

THE grocery industry has sided with the Coalition’s claim the Rudd government’s emissions trading scheme will be a big tax.

Environment Minister Peter Garrett said yesterday that claims by the Australian Food and Grocery Council that food prices would be pushed up by 5 per cent overstated the reality by seven times.

“The Treasury modelling found that in 2013, the average price impact of the Carbon Pollution Reduction Scheme on food bills will be around $68 a year — less than 1 per cent of household food bills,” Mr Garrett said.

However, the council chief executive Kate Carnell said this was not realistic, given the role of electricity in the processed food supply chain. “The average shopping basket is about $200 a week, so the government’s modelling suggests a barely 0.5 per cent increase off the back of increases in electricity prices of 20 to 40 per cent. That is not even vaguely credible in a manufacturing industry,” she said.

Read it here.

Comments

  1. To date “treasury models” have proven about as accurate in their forecasts as the global circulation models. Not worth considering!

  2. Hang on a minute … didn’t these so-called Treasury models also assume that a 5 per cent cut in emissions would be made in the context of similar action taken by developed countries? Since this isn’t likely to happen, how can our half-witted minister for the environment still be making these outrageous claims?
    http://www.quadrant.org.au/blogs/doomed-planet/2009/08/alex-robson

  3. Doesn’t surprise me that Garrett got it wrong. In response to a question about Peter Spencer and his hunger strike, Garrett said he should use the courts. Apparently he wasn’t aware that Peter went to court 200 times and still didn’t get a hearing. Garrett is a fool and indicates the quality of the government ministers.

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