Carbon Trading Scheme Sends Smoke Signals Across Oz Food Industry

Manufacturing jobs would have been at risk in the food processing industry if Australia passed its controversial Carbon Pollution Reduction Scheme, the Australian Food and Grocery Council (AFGC) warned.

Instead, a solution to carbon emissions must be found that do not raise the cost of food to exorbitant levels.

The AFGC estimated Australian-made food prices would have risen by up to 5% if the scheme, which saw emissions trading scheme charges handed on to the producer, was passed.

Goods imported from other countries would have stayed the same, however, seriously affecting the local industry, AFGC chief executive Kate Carnell said.

“Unless our competitors including Malaysia, China and Indonesia are subject to the same carbon costs, Australian manufactured goods will be disadvantaged on Australian supermarket shelves and jobs will suffer,” Carnell said.

Carnell said the government had a second chance to draw up legislation following the Senate blocking the first proposal last week.

By Penny Jones