CPRS: Business reprieve should not defer investment

By: Peter Anderson, ACCI Chief Executive

07 December, 2009

The Senate's decision does not let companies off the hook when it comes to carbon reduction.

The rejection by the Senate of the Carbon Pollution Seduction Scheme legislation provides an opportunity to iron out remaining flaws in scheme design and timing, but should not be used by industry to take the foot off the pedal in investing in new technology to improve energy efficiency.

"The absence of price compensation for small business, and locking in an Australian ETS before nations we compete with imposed similar costs on their economy, were flaws that justified deferral of the legislation.

"Attention should now turn to ironing out these flaws, and the pursuit of an economically responsible global agreement.

"This is not a get out of jail free card for industry. It is an opportunity to get our scheme design and timing right, whilst maintaining research and investment in new technology, and noting that there are no cost-free policy options.

"While some businesses that would have made money out of a carbon market will be disappointed, most who would face higher energy costs will not see rejection of the Bills in a negative light. While some will claim that uncertainty exists, there is no real business certainty without Australian industry remaining competitive."