Emissions trading scheme assistance must include SMEs
Small and medium sized business must receive their fair share from any Federal Government scheme to assist those facing increased costs under a carbon trading scheme, industry groups say.
95% of all businesses in Australia are in the small to medium sector. They are seldom the exporters that Garnaut thought should be compensated. However it is vital that the section of our economy that represents 95% of all businesses in Australia isn’t ignored if we are to achieve the goals of reducing carbon emissions and reduce the impact of the scheme in economic terms,
The 30% of the revenue Garnaut suggested the government earns from selling carbon emission permits – likely to be in the billions – to help business adjust to the trading system, won’t go far in the small business sector when the large business loud voices of the big businesses who have time and money to lobby effectively .
Few small businesses are likely to be directly affected by an emissions cap, but almost all will face increased costs for things like energy and transport under the scheme and that will affect the viability of many.
The Garnaut Review suggests “broad based, efficiency raising tax reductions” could be used to help businesses offset increased costs with productivity gains. Maybe it could be used to subsidise training in environmental management – like Enviro Action’s training for one example.
The report also argues that trade exposed industries – sectors that compete in an international marketplace – should be the main focus of government spending directed to business.
This view is backed by a broad range of Australian business groups. The Australian Industry Group, which represents many trade exposed manufacturers, says getting this aspect of the scheme right will be vital. I don’t hear small business mentioned here!
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