Carbon reduction a financial squeeze on business

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Queensland businesses will not be able to cope with increased costs associated with the Federal Government’s Carbon Pollution Reduction Scheme (CPRS). 

President of the Chamber of Commerce and Industry Queensland, Beatrice Booth said electricity prices in Queensland had alreay been to rise in 2009 and the introduction of te CPRS would result in even higher energy prices along with reduced competition.

“This is not the time to be contemplating major economic reform that will impose further strain costs on business and the wider community,” Mrs Booth said.

“It seems the Government remains committed to a start date of 1 July 2010 and has decided on a target of reducing Australia’s emissions by between 5 per cent (if there is no global agreement on emissions reduction) and 15 per cent (if there is a comprehensive global agreement) below 2000 levels, by 2020.

“Electricity prices are expected to increase by around 18 per cent and gas prices by 12 per cent. “Queensland business is already looking at an almost 15 per cent increase in electricity prices in 2009-10.

“Despite this being a somewhat gentle start, at a permit price of $25 (the minimum initial permit price), the cost of living is expected to increase by 1.1 per cent in 2010-11.”

Mrs Booth says the Government expects to receive $11.5 billion in permit revenue in the first year of the CPRS’ operation in 2010-11 and $23.5 billion over the forward estimates and has committed to using this revenue to help households and businesses adjust to the scheme.