Dame Elisabeth Murdoch calls for price on carbon, but ACCI warns SMEs to suffer

More prominent Australians have come out in support for a carbon tax, including one with a special link to a key media proprietor.

Dame Elisabeth Murdoch, mother of News Corp chief Rupert Murdoch, has signed an open letter of support for the Government’s plans to put a price on carbon.

The letter says it is Australia’s “responsibility to find a solution” to global warming, given its carbon emissions are among the world’s highest per capita.

“Delayed action is a backward step and a costly one for all Australians,” the letter, published in Fairfax Media, says.

It also says a carbon price would build a “better, cleaner and more sustainable future, for the sake of our children and grandchildren” and calls for all “Australians to demand leadership on this so together we can take the first steps towards a low-carbon future.”

The other signatories are Clean Up Australia founder Ian Kiernan, horticulturalist Peter Cundall, former Victorian governor David de Kretser, medical researchers Dr Fiona Stanley and Sir Gus Nossall, and mental health expert Patrick McGorry.

The letter follows a survey of 82 coal mines in Australia, showing the cost of the carbon tax would be about $18 billion for the nine years to 2021.

Ralph Hillman, executive director of the Australian Coal Association, says while the body supports a price on carbon, it does not support one that “causes Australian mines to close and shift production to other countries with no reduction in global greenhouse gas emissions.”

“The impact of the carbon tax on the black coal mining industry will be felt mainly in regional NSW and Queensland with nearly 3,000 jobs at risk in the coal sector in NSW within the first three years. In Queensland over 1,000 jobs are at risk within three years,” Hillman said.

“The carbon tax will put thousands of jobs at risk and push billions of investment dollars in new mining developments offshore to our competitors.”

Greg Evans, of the Australian Chamber of Commerce and Industry, said while “some households may be partially compensated for the increasing cost of living and selected industries may be assisted to an extent, SMEs are set to be left out in the cold… and will bear the full brunt of cost increases in the form of higher energy prices and higher input price.”

Evans said some SMEs were particularly vulnerable because they are trade exposed, or have limited market power. They are also likely to have already realised the affordable energy efficiency gains in their business, he said.

“In the medium-term, the impact of a carbon tax on the SME sector is likely to be on both investment and employment.”

“However, the immediate impact is likely to fall disproportionately on employment as SMEs adjust to the new tax burden.”

“Thousands of SMEs also have linkages to the large scale trade exposed sector across resources, energy and manufacturing sectors such as the steel and food industries. Hurting the international competitiveness of these businesses also hurts small business either through the loss of contracts or orders or through flow on impacts.”

A Productivity Commission report, released last week, showed a price on carbon was the most effective way to cut emissions, and Australia was in the middle of the pack, compared with trading partners, when it came to tackling global warming.

Another study, by Australian National University professor Bruce Chapman on behalf of the Australia Institute, this month cast doubt on previous forecasts of massive job losses in the resources sector under the dumped emissions trading scheme.

Meanwhile, an opinion poll has shown that voter satisfaction with Prime Minister Julia Gillard has fallen to 30%, with dissatisfaction unchanged at 55%.

The Newspoll, published in News Limited papers, shows Gillard remains preferred Prime Minister, with satisfaction with Opposition Leader Tony Abbott falling to 35%, from 37% two weeks ago. Dissatisfaction levels with Abbott remained unchanged at 52%.

The Gillard Government is looking to introduce a carbon price in July next year, pending the finalisation of negotiations with the Greens and crossbenchers.