UK manufacturers reject carbon tax

To the ques­tion whether a Gillard car­bon tax would be jus­ti­fied by inter­na­tion­al coop­er­a­tion argu­ments (as Dr Gar­naut believes), the UK man­u­fac­tur­ing indus­try asso­ci­a­tion, EEF, answers “no”. It doesn’t want to “coop­er­ate”, either.

The EEF (for­mer­ly the “Engi­neer­ing Employ­ers’ Fed­er­a­tion”) says the UK Trea­sury pro­pos­al for a “car­bon floor price”, to be set by a tax, would lead to dis­in­vest­ment in Britain.

EEF chief exec­u­tive Ter­ry Scuol­er said: ‘Indus­try accepts that address­ing cli­mate change comes with a price tag but we are rapid­ly reach­ing a tip­ping point where com­pa­nies who are inter­na­tion­al­ly mobile will say enough is enough.

The pol­i­cy objec­tive should be to pro­vide greater cer­tain­ty for investors, not rais­ing tax­es at the expense of Indus­try, espe­cial­ly at a time when gov­ern­ment is expect­ing the sec­tor to help dri­ve eco­nom­ic growth.’” Extract from The Man­u­fac­tur­er mag­a­zine

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