REFRIGERANT PRICES MORE THAN DOUBLE UNDER CARBON TAX
Posted on Thursday, 5 July, 2012
Member for Grey Rowan Ramsey has claimed the astronomical increases in refrigerant gases are just one of the examples of the unpredictability of the carbon tax and the relentless way it is likely to get its tentacles into our everyday life.
“Refrigerants have more than doubled in price under the carbon tax and contractors have no choice but to pass on the increases. Just one, R404A, widely used in industrial and supermarket refrigeration, will increase from $92.88 per kilo to $377.71 per kilo. This is on top of a 20% price increase as of June 13, 2012,” he said.
“I have been contacted by a number of refrigerant mechanics who are shocked by the increases and have explained the refrigerants are packaged in 12kg cylinders and they need anything from four to eight different grades, the tax increase has added thousands to their inventory costs.
“One operator from Port Augusta said he was threatened by the extra costs and was considering closing his business. For others, these extra costs will have to be passed on ultimately affecting the price of anything using air conditioning or refrigeration.
“Contrary to Government claims, all businesses face increased costs under the tax as it cascades down through the system and yet they receive no compensation.
“I’m receiving daily reports of suppliers advising businesses of price rises in the 4-8% range.
“However the even bigger issue has always been ‘carbon leakage’, with every one of Australia’s competitors gaining a price advantage over Australian goods.
“Recent actions by the government show the tax is presenting a rolling emergency for the economy as they announce a series of unplanned cash handouts to keep selected industries they had previously maintained would be fine, afloat.
“When the Government recognised the steel industry was in deep trouble it announced a $300m assistance package, in the last few weeks there has been a $50m bailout package for Energy Brix and then $42m for aluminium producer Alcoa.
“The Government has not explained how those who do not get a bailout will cope, what happens when the packages run out with the price of carbon continuing to rise every year and why companies will reinvest in Australia when they can make better profits elsewhere in the world.
“At the same time the Government’s own figures tell us that it expects Australia’s emissions to rise and the shortfall will be made up by sending billions of dollars a year overseas for carbon credits as part of an enormous world money shuffle.”
Media Contact: Leonie Lloyd-Smith (08) 8633 1744
July 2 2012