Business groups harden position on carbon pricing as Boost Juice founder named as supporter of tax

Business groups have called for a very low price on carbon, or none at all, as Boost Juice founder Janine Allis is listed alongside an ex-Liberal Prime Minister, authors, artists and actors in support of the Government’s carbon-pricing plans.

The Australian Industry Group and Business Council of Australia have called for a starting price of just $10 per tonne, versus expectations of a least $20 per tonne. The BCA has called for slow increases to the price, with all trade-exposed industries to be eligible for a 100% allocation of their permits and regular Productivity Commission reviews on comparable countries.

The Australian Chamber of Commerce and Industry, meanwhile, has said even a $10 per tonne price will rapidly escalate to much higher and even more damaging levels for business and households.

“A lower introductory carbon price provides no comfort to business as this is still a significant incremental cost with an established pathway and mechanism to much higher levels,” ACCI said yesterday, drawing attention to businesses struggling with higher input costs and electricity prices.

“Businesses simply can’t absorb another hit on their profitability on top of dealing with currency appreciation, rising interest rates, subdued levels of household spending and the already significant impact of hikes in energy charges,” the ACCI said.

“Perversely, the carbon pricing regime will heavily impact on the more vulnerable sections of industry and in many instances given their business size they will be excluded from meaningful compensation arrangements.”

“Australia needs to rethink its approach on carbon mitigation and prior to a world agreement adopt far less harmful approaches by using technology and efficiency measures to make our contribution in reducing emissions,” ACCI chief Greg Evans said.

The announcements come as the Government continues to nut out an agreement with the Multi-Party Committee on Climate Change. There are expectations key agreements will be made by the committee in the next couple of months, with legislation in place by the year’s end. A fixed carbon price is due to start on July 1, 2012.

According to reports, Julia Gillard has ordered ministers to promote the Government’s plans for a carbon tax.

While Greens Senator Christine Milne has said there was a “long way to go before we all get on the same page”, Climate Change Minister Greg Combet this morning told ABC Radio that there is “a lot of support for carbon pricing”.

“Everyone knows, I think, broadly through the business community in particular, that using a market mechanism in the way that we’ve described is the least-cost, most-efficient way of achieving the reductions in emissions across our economy,” Combet said.

“You have got major business organisations in the form of the BCA and the IAG saying yes to carbon pricing, yes to a market mechanism to achieve it, because of the economic efficiency of that approach.”

Signatories to the 140-strong ‘We say Yes’ campaign include former Prime Minister Malcolm Fraser, indigenous leader Patrick Dodson, actors Cate Blanchett and Michael Caton, author Tim Winton, artist Ken Done, rugby player David Pocock, nutritionist Rosemary Stanton and Queen’s Counsel Julian Burnside.

Blanchett’s role in the campaign was criticised at the weekend by Nationals MP Barnaby Joyce, who said the Oscar-winning actress was hurting people by calling on them to embrace a tax that she could easily afford to absorb.

The 10-day media campaign is being funded by unions and environmental groups. A statement will be delivered to Parliament House today.

Allis and her husband Jeff, who could not be reached for comment this morning, last year sold a 70% stake in Boost for between $65 and $70 million to the US private equity firm, the Riverside Company.