Carbon tax on print imports to level the playing field

If a carbon tax is introduced without adequate compensation printed matter from countries without emission trading schemes should be taxed, says Printing Industries.

The results of a survey were used by Printing Industries as part of a submission delivered to the Federal Government outlining the peak body’s policy position on the proposed Carbon Price Mechanism. The submission argued that in the absence of financial assistance for the industry, a carbon tariff should be imposed on imported printed matter originating from jurisdictions that do not have emissions trading schemes or carbon taxes, reflecting the carbon costs incurred by local printers.

The survey found most respondents believed rises of 20 per cent in electricity costs and ten per cent in raw material and freight costs would cause, on average a 10-14 per cent decline in output. It would also cause a 14-27 per cent decline in profitability and an 11-15 per cent decline in employment in the sector.

According to Printing Industries, if these results are replicated across the entire printing industry, then there could be a decline in industry output of between $990 million to $1.4 billion, industry profits could decline by $53 million to $102 million, and total industry employment could fall by 5,500 to 7,500.

The survey respondents also indicated they believed that a carbon price would have a significant effect on costs, with electricity and gas bills currently making up on average 5 per cent of operating costs. Paper represents 20-50 per cent of operating costs of which 60 per cent is sourced from Australia and would be affected by the introduction of a carbon price.

Printing Industries national manager for policy and government affairs, Hagop Tchamkertenian (pictured) says in order to counteract the effects of a carbon price, the government must create a level playing field for local printing businesses by providing financial assistance in line with other trade-exposed industries. Printing Industries has made it clear to the government that while it supported moves to mitigate the potential impacts of climate change, it was concerned about the potential impacts on its members if the government failed to adequately compensate/support the printing industry.

“Funding should also be provided to the printing industry to realise the significant opportunities to reduce emissions through energy efficiency projects,” he said. “The government should consider providing funding for training programmes, research and development, and uptake of energy efficient technologies by printing businesses in order to reduce overall emissions and transition the sector to remain competitive in a lower-carbon economy. The industry impact gets larger once we start adding likely cost increases eventuating from raw materials and freight and transport.”

Surveyed respondents also indicated that a carbon tax would significantly impact operating costs, five per cent of which is currently made up of electricity and gas bills. Paper represents 20-50 per cent of operating costs of which 60 per cent is sourced from Australia and would be affected by the introduction of a carbon price.