Hagop Tchamkertenian from the PIAA told ProPrint the report, based on an online survey, was a “snapshot” of the possible implications of the carbon tax. The report was based on a “worst-case scenario” warning printers of the dangers of the tax without adequate government compensation.
The survey based its questioning around estimates from the government’s chief climate change advisor, professor Ross Garnaut. The results have shown that the tax could see a decline in industry output of between $990m to $1.4bn.
The survey claimed the industry’s profits could be cut by up to $100m while up to 7,500 jobs could be lost.
According to the PIAA: “The survey found that most respondents believed that rises of 20% in electricity costs and 10% in raw material and freight costs would cause, on average, a 10-14% decline in output, a 14-27% decline in profitability and an 11-15% decline in employment in the sector.”
Finsbury Green national environmental and technical manager Rodney Wade praised the effort but said further information was needed before the report could be taken seriously.
“It is good that the PIAA are advocating to the Federal government on behalf of the industry as it relates to being compensated against imported printed material,” he said.
“However, the survey makes all sorts of claims, which nobody in this country can validate yet because there is precious little detail about what the carbon tax will be and what its impacts on the Australian economy will be.”
Print Bound managing director Mauro Mattarucco added that the industry needed to be wary of the carbon tax.
“The industry needs a stimulus rather than another challenge,” he said.
“In saying that, we can sometimes overreact to change or shifts in policies.”
“We need to find ways to pass on costs or find other areas in the business to face these challenges head on. Rising costs means new taxes cannot always be absorbed. It’s challenging but carbon emission cannot continue to be ignored either.”
Vega Press commercial manager Rob Nugent said his company already makes a substantial effort to offset its carbon usage and that it would be imperative for the government to give consideration to small businesses.
“For SMEs like Vega, early indications are that energy charges will increase somewhere between 10% and 30% over the next three years,” he said.
“Given our current annual energy bill of approximately $140,000 this means that the potential increase in operating costs will be similar to the ongoing cost of purchasing offsets.
“In essence Vega will be paying twice to support the government’s program to reduce the nation’s carbon footprint.”
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