- Carbon Tax Impact On Car Industry Competitiveness
FCAI Chief Executive Andrew McKellar
The Federal Chamber of Automotive Industries (FCAI), has
warned that the proposed carbon price will add to industry costs and
"Our analysis indicates that the
initial carbon price of $23 a tonne will result in increased costs to
local automotive manufacturers of more than $30 million a year," FCAI
chief executive Andrew McKellar said.
"A cost increase of
this magnitude will further undermine the competitive position of local
manufacturing making it harder to secure future investment.
are also concerned the future costs to the automotive industry will be
even higher when proposed arrangements for the treatment of air
conditioning gases are taken into account and if the economy moves to a
fully-traded scheme too quickly," he said.
said the carbon price came on top of other factors, like the high
Australian dollar, and would put additional competitive drag on the
"We support the objective of reducing carbon emissions
reductions but we are disappointed the Government has failed to ensure
trade-exposed industries like automotive manufacturing are adequately
compensated for increased costs," he said.
"If Australia wants to
maintain a diverse economy with a high-tech automotive industry we need
to secure ongoing investment in future automotive design, engineering
and production programs.
"Australia needs to take an
internationally competitive approach to policy that supports industry
and government co-investment and not penalise companies that invest in
automotive capability in this country.
"We urge the
Government to re-think its approach and to work with industry to ensure
these concerns can be addressed before legislation is finalised," said