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Friday, 15th July 2011


Forde Households Face Food Price Hit Under Gillard Carbon Tax


Households in Forde will be forced to pay around $120 more a year for groceries, thanks to Labor’s toxic carbon tax.


“The Australian Food and Grocery Council estimates that the carbon tax will add $120 a year to household grocery bills – three times Labor’s estimate of $40,” said Bert van Manen MP, Federal Member for Forde.


“Treasury says that food prices will rise less than 1 per cent 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 5 per cent in the first nine months of the Gillard Government, which has done nothing to cushion households from the spiralling 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.


“The carbon tax will cascade all down the supply chain, from farming to food processing, from transport to storage, from refrigeration to lighting.  Food retailers and restaurants in Forde cannot control the prices charged by their suppliers, or avoid paying more for electricity.


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


“Labor’s official household cameos reveal that a single income couple who have three children and earn $150,000 a year will receive only $77 to compensate for the total cost impact of the carbon tax.  This compensation is meant to shield families from all cost of living increases, but it is not even enough to cover the $120 annual increase in grocery bills predicted by the Australian Food and Grocery Council,” Mr van Manen said.


“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 modelling reveals that the carbon price will increase to $37 a tonne in 2020 and over $350 a tonne in 2050.”


“The most outrageous thing about Labor’s carbon tax is that the suffering of workers and families in Forde will be for nothing – Australia’s emissions will actually increase under the carbon tax,” concluded Mr van Manen.