THE HON GREG COMBET AM MP Minister for Climate Change and Energy Efficiency Minister for Industry and

Innovation

MEDIA RELEASE
GC 68/13 18 March 2013

IS THAT THE TRUTH OR DID YOU READ IT IN THE DAILY TELEGRAPH?

The Daily Telegraph has this morning published a misleading and slanted report on the impact of the carbon price on the Australian economy. The newspapers suggestion that the carbon price is causing an economic catastrophe is more in keeping with Tony Abbotts hysterical political scare campaign than with factual and balanced reporting. It is completely at odds with the facts. The Daily Telegraph story even contradicts itself, acknowledging that experts say it is the high Australian dollar and not the carbon price which is the main factor behind the pressures on manufacturing industry. The carbon price has been in place for almost nine months and Australias economy is growing at one of the fastest paces in the developed world. Since the start of the carbon price on 1 July last year: 133,500 extra jobs have been created more than 20 every hour since carbon pricing started; 118,546 new companies have been registered more than 20 every hour; Company share prices have grown strongly with the S&P/ASX 200 index up 25 per cent; The economy grew at an annual rate of 3.1 per cent in the year to December; Australia has retained one of the lowest unemployment rates in the developed world, at 5.4 per cent.

The Daily Telegraph says a record 10,632 companies collapsed in the 12 months to 1 March 2013 due to carbon pricing. What they dont tell their readers is that during the same 12 months, 186,583 new companies were registered, according to Australian Securities and Investment Commission figures. Furthermore, the number of companies quoted by the Daily Telegraph as collapsing over the 12 months to 1 March 2013 was lower than the number going into external administration during the preceding 12 months to 1 March 2012, before the carbon price started.

The Gillard Labor Government is acutely conscious of the pressures on parts of Australian manufacturing which are due to the high value of the dollar and intense competition on world markets. That is why we have announced the $1 billion Plan for Australian Jobs which will deliver more work for local firms on major projects and stronger protection for manufacturers from goods being unfairly dumped into Australia by foreign producers. It is why we have a $5.4 billion New Car Plan to support the automotive manufacturing industry a plan which Tony Abbott would slash by $1.5 billion. And it is why the Government is using $1 billion in carbon price revenue to assist manufacturers to reduce energy costs and become more competitive by investing in energy efficient equipment.

Media contact: Mark Davis, Gia Hayne 02 6277 7920