Thursday, 14 July 2011

Households in the Mitchell community will be forced to pay around $120 more a year for groceries, thanks to Labor’s toxic Carbon Tax, said the Federal Member for Mitchell, Alex Hawke.

“The Australian Food and Grocery Council estimates that the Carbon Tax will add $120 a year to household grocery bills – that’s three times Labor’s estimate of $40,” Mr Hawke said.

“Treasury says that food prices will rise less than one percent under the Carbon Tax, but the Treasurer has been unable to explain by how much a single can of tomatoes will increase.

“Food prices have already increased five percent in the first nine months of the Gillard Government, which has done nothing to cushion households from the spiraling cost of living.

“Australian Food and Grocery Council boss Kate Carnell says that Treasury’s estimate does not stack up to business reality – the cost of the Carbon Tax will inevitably be passed on to consumers.”

Mr Hawke said the Carbon Tax will cascade down all of the supply chain, from farming to food processing, from transport to storage, from refrigeration to lighting. 

“Food retailers and restaurants in the Hills cannot control the prices charged by their suppliers, or avoid paying more for electricity,” Mr Hawke said.

“Higher food prices are just one of many cost increases that Labor’s Carbon Tax will impose on local households; its own figures show that households get slugged $515 a year in their cost of living.

“While the carbon price will start at $23 a tonne, after three years it will float with the market and go up and up and up.  Labor’s own modeling reveals that the carbon price will increase to $37 a tonne in 2020 and over $350 a tonne in 2050.”