11 June 2012

Small firms brace for carbon tax


SMALL businesses face punishing power bill rises of up to 25 per cent due to the carbon tax and are warning of job losses and flow-on price hikes.

Putting a lie to Julia Gillard's claim that only big polluters will pay, the owner of six McDonald's outlets in Sydney estimates the carbon tax will add hundreds of thousands of dollars to his annual operating costs.

One Melbourne firm, Hardchrome Engineering, estimates the Government's greenhouse scheme will add $70,000 - or 25 per cent - to its energy bill and says customers will likely pay more from July 1.

While low and middle-income families are receiving top-up payments to offset the tax, small business owners claim the extra costs will force them to lay off staff - and work extra hours to make ends meet.

Hardchrome general manager Andrew Dugan has been told by his power supplier the carbon tax will add 25 per cent to his costs.

The firm specialises in energy-intensive electroplating and Mr Dugan says its 3000 customers are likely to pay more from July 1 to offset these price increases.

"We've got to find these savings somewhere," he said.
"The argument that it's just being paid by the top 500 (polluters), that is crap."

NSW service station operator Craig Glasby has been told his power bills will rise by 15 per cent and is now considering cutting back staff or working six days a week to cover costs.

Andrew Reitzer, chief executive of Australia's biggest grocery wholesaler, Metcash, has no doubt that grocery bills will be higher.

"It's almost a guarantee the consumer is going to pay more," Mr Reitzer said.

Opposition climate change spokesman Greg Hunt said many small businesses would cop it in the neck.

"The Prime Minister is in denial about the impact on small business," he said.

heraldsun.com.au 11 Jun 2012

Another 'tax' where 'big business' is immune from the added costs which are put on to the consumer.

Government suppoerted fraud, at the highest level, with no inquiry, or resistance from the masses.
 

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