Statement by CCI Chief Executive James Pearson
The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, welcomes the Federal Government’s decision to delay the start of its proposed Carbon Pollution Reduction Scheme (CPRS).
CCI has played a lead role in calling for the emissions trading scheme to be delayed, arguing the original proposed 2010 start date was too soon, and did not provide small, medium and large businesses enough time to prepare.
CCI is pleased the Federal Government has recognised the importance of not imposing another cost barrier, and regulatory burden, on business during these challenging and uncertain economic times.
Delaying the start of the proposed scheme by one year will assist business and industry, hit hard by the global financial crisis, by giving them time to plan for the scheme’s introduction, developing the necessary systems for reporting and compliance, and integrating them into existing business operations.
CCI believes the Government’s plan to reduce emissions by 25 per cent of 2000 levels by 2020 is ambitious, even though it will require a strong international agreement which ensures Australia’s emissions intensive trade exposed industries are not placed at a competitive disadvantage.
CCI will study how the proposed changes, including altering the price for carbon and the thresholds for permits, will affect the ability of businesses to lower emissions, while continuing to be internationally competitive.
In particular, we need to know how the Government will manage the transition from a capped carbon price of $10 per tonne in the first year of the scheme, to a market based price thereafter.
The CPRS is one of the most significant economic policy decisions in modern history. It is critical the right decisions are made by government to ensure the economy, and local business and industry, are not unfairly penalised.
CCI looks forward to working with the major political parties on behalf of the WA business community to develop an emissions trading scheme that is in Australia’s national interest.