The Government’s controversial emissions trading scheme (ETS) will hurt Australian small and medium businesses according to the Australian Chamber of Commerce and Industry (ACCI).
A report released by the ACCI on Tuesday found that the trading scheme would lead to increased electricity prices and higher transport expenditure, and would erode a company’s profitability by up to seven percent. In order to compensate for lower profibability, small and medium businesses would have to reduce their labour costs by between 4.4 percent and 8.1 percent.
ACCI acting chief executive Greg Evans said small and medium businesses would suffer in the long run from the scheme, particular those in manufacturing, food processing, plastics and chemicals and machinery industries.
“Small to medium enterprises, particularly those involved in manufacturing, face prices set in international markets due to import price parity.
“As a consequences, trade-exposed small to medium enterprises have limited opportunities to pass the costs on to their customers, but are not eligible for assistance under the proposed CPRS transition package.”
However Australian Greens senator Christine Milne said ACCI was missing the point of the scheme and focusing on the costs of climate action instead of the opportunity to develop environmentally friendly businesses.
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