While the Prime Minister is adamant prices will only rise by one per cent under the soon-to-be-introduced carbon tax, ACCC Rod Sims has confirmed no such rule applies.
Prime Minister Julia Gillard has repeatedly promised Australian families that prices will not rise by more than one per cent due to the carbon tax, a promise the Coalition maintains is hollow. Now, under questioning from Shadow Parliamentary Secretary for Small Business and Fair Competition Senator Scott Ryan, Mr Sims has confirmed that not even he knows how much prices will increase.
“I’ve got no knowledge on what the aggregate average will be. It depends on the business,” ACCC chairman Mr Sims told the Senate Economics Committee on Wednesday evening.
“Just weeks out from the introduction of the carbon tax, confusion reigns,” Senator Ryan said. “Businesses could face fines of more than $1 million if they put prices up too much after July 1, but nobody really knows how much is too much.”
“What we do know for sure is that the carbon tax is going to hurt Australian families, it is going to hurt Australian small business and it is going to hurt Australian jobs,” Senator Ryan said. “The Government knows the carbon tax is confusing and damaging, that’s why they didn’t mention it in their household assistance advertisements.”
“Only the Coalition will repeal the carbon tax and ease cost of living pressures on families and give small business a fair go.”
The ACCC is the body charged by Prime Minister Gillard with policing businesses to ensure they are not improperly increasing prices under the carbon tax.