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