Several Australian Manufacturers Form New Group to Oppose Carbon Tax

Amcor, BlueScope Steel, Boral and other major Australian manufacturers recently formed a new industry manufacturing group to oppose the proposed carbon tax.

Dick Warburton, executive chairman of the newly formed Manufacturing Australia, urged on Monday the federal government to defer this week's vote by the House of Representatives on the measures until other nations had made it clear how they would deal with carbon emissions.

"It seems quite wrong to be going ahead of the rest of the world when in fact countries are actually pulling out of carbon taxes and ETSs.... And therefore for us to go ahead with very little protection of the emissions at a distinct disadvantage to our economy just doesn't seem right," Mr Warburton told ABC Radio.

Although Mr Warburton, a former Reserve Bank of Australia board member, supported a carbon tax in 2009, he said the current proposal is different from the old carbon tax in terms of delving into permits and rights.

He said although manufacturing firms are grateful for the help provided by the proposed carbon tax, it would not be enough in the long-run compared to the advantages of manufacturers overseas.

Mr Warburton pointed out that when the general sales tax was introduced it took the government 15 years to consult different sectors, while the current government gave Australians only about one year to debate on the carbon tax. He added it was also the case for the minerals super tax.