Carbon tax the ‘last straw’ for Aussie business

Australian profits...

Australian profits…

Whilst Europe is paying about $4 a tonne (which is still $4 a tonne too much), Australian businesses are being slugged with $23 a tonne. Added to the raft of other anti-business legislation rolled out by Labor to keep the union vote sweet, this is finishing off businesses at a rate of one an hour:

THE carbon tax is contributing to a record number of firms going to the wall with thousands of employees being laid off and companies forced to close factories that have stood for generations.

Rising energy bills caused by the Government’s climate change scheme have been called the “straw that broke the camel’s back” by company executives and corporate rescue doctors who are trying to save ailing firms.

New data from the corporate regulator reveals insolvencies have hit a record high over the past 12 months, led by widespread failures in manufacturing and construction, which accounted for almost one-fifth of collapses.

The Australian Securities & Investments Commission reports there were 10,632 company collapses for the 12 months to March 1 – averaging 886 a month – with the number of firms being placed in administration more than 12 per cent higher than during the global financial crisis.

While the high Australian dollar is seen as the main factor behind manufacturing closures, experts say the carbon tax is adding to increasing cost burdens for many firms struggling to stay afloat.

Peter Macks, principal of Adelaide-based insolvency firm Macks Advisory, said the carbon tax was “quite debilitating” for a number of hotel operators who he said had been “struggling for a long time”.

“It is very tough operating at a profit,” Mr Macks said.

Todd Gammel, a partner with HLB Mann Judd, likened the carbon tax to pulling a leg out from underneath a chair.

“For companies which have exposure to energy, and other factors which are affected by the carbon tax in a significant way, the carbon tax and the costs related to it are having a significant impact on the ability of these companies to continue,” Mr Gammel said. (Source)

And of course, if Conroy’s draconian media laws pass next week (because you only need a few days to consider thousands of lines of legislation, right? And there’s no room for negotiation…) you won’t be able to read any criticism of the government. In case you haven’t seen it, you must watch Piers Akerman on Insiders surrounded by lefty apologists for this muzzling of free speech.

Comments

  1. Reblogged this on Tallbloke's Talkshop and commented:
    Sounds like things are getting pretty bad down under. Election promises broken, erosion of free speech, curtailment of autonomy. Hang in there friends, the end of climate madness is in sight. Legal challenge should soon be possible.

  2. “Labour governments have never run businesses, have no idea how an economy works and thus will kill off the golden goose and always find some other reason for the failure. “Socialism works till you run out of other people’s money” Thatcher

  3. “Labour” governments have never laboured in their lives. They kill off the goose that lays the golden eggs, because they have no idea what an economy is and theft is all they’ve ever known. Good Luck to all Aussie businesses. I hope you survive until the next election.

  4. Don’t forget the Carbon Tax will rise come mid 2013 …
    “The price will start at $23 per tonne on 1 July 2012. In each of the next two years, it will rise by 2.5 per cent in real terms, assuming inflation of 2.5 per cent a year, which is the mid-point of the Reserve Bank of Australia’s target range for inflation. The carbon price will be $24.15 per tonne in 2013-14 and $25.40 per tonne in 2014-15.”

    September 14 can’t come soon enough!

  5. Thanks Simon,
    That’s a “keeper” for justifying the up-coming price increase for my services.
    (Home-based, so the AC has to run on standard tariff 24/7 for 4-5 months of the year.)

  6. Keep fighting tooth and nail against the Ministry of Truth and whats yours is theirs. This tip if the ice berg is growing throughout the western world, allowed without a murmur from the sleep walking public. Each time the vice grip on new rules tighten a smidgen, with a little amendment here and a loose interpretation there, they becomes the new law or new norm, until there is no choice or freedom left!
    Time for sanity!!!!

  7. Henry the Ateth says:

    Good to see the Labor Party making sure Aussies lead the way in the world’s effort against carbon pollution (and free speech). Leading in just such a fashion that no other country in its right mind will follow. It highlights how vulnerable, lazy and complicit the press is to being duped with a good fear campaign and an avalanche of press releases.

  8. Truthseeker says:

    Tallbloke and friends. I just got the following email from the Australian Liar Party …

    “Dear [redacted],

    Today the Liberal Party launched yet another misleading attack on the carbon price.

    This is the same Liberal Party that has access to a limitless credit card from the big end of town wanting to buy this year’s election result. Don’t just get angry; let’s get even. Even $10 can help us stop Tony Abbott…it all adds up.

    First, the facts: The Liberal Party’s claims are based on a hysterical scare campaign run by the Daily Telegraph, who said the carbon price has caused a so-called “economic catastrophe”. What they failed to mention is that since the carbon price was introduced more than 130,000 extra jobs have been created and our economy has actually grown at a rate of 3.1 percent.

    We’ve fought so hard to take action on climate change and I’m committed to making sure the truth gets out. Can you help me fight back by donating to make sure the big polluters don’t win this year’s election?

    Today’s misleading attack shows this fight is going to get nasty. For the sake of future generations, it’s a fight we can’t afford to lose.

    Make a monthly donation until the election here to help us stop the Coalition from being so “Liberal” with the truth about our future!

    George Wright
    Campaign Director – Australian Labor Party”

    It is a money grab wrapped up in lies. I am going to have sooo much fun with my reply …

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