Cost pressures increasing across the board

Steve Lewis
Herald Sun
July 16, 2012

SMALL retailers, farmers and big-supermarket suppliers are facing carbon tax-related increases on everything from pizza boxes to transport.

A fortnight after the Gillard Government’s climate change reforms came into effect, businesses are weighing up the cost of changes to the diesel fuel rebate and a massive spike in refrigerant gas supplies.

Vegetable suppliers and chicken farmers are considering the costs of the carbon tax on their energy-reliant operations.

And a staggering 300-400 per cent rise in refrigeration gas costs has shocked the industry.

The Government also announced changes to its fuel rebate scheme from July 1.

Kerry Demos, who runs the Hastings Pizza shop on the Mornington Peninsula with her husband Phill, said the price of pizza boxes would rise by 2.5 per cent – adding to their weekly costs.

But they planned to absorb these increases rather than pass them on.

“If we put up our prices, I would think we would lose customers,” Ms Demos said.

John Brent, chairman of lobby group Ausveg, said vegetable growers would face difficulties absorbing the cost effect of the carbon tax.

“This is just sheer fallacy when I hear the (Government) saying that these costs filter down the system,” said the Queensland vegetable grower.

He believed the impact of the carbon tax would make it “more attractive” for produce from Southeast Asia to be imported to Australia due to cost pressures.