Australian carbon tax given thumbs up

Australia’s highly controversial carbon tax came into operation yesterday, with over 300 high profile firms backing the new levy, despite fierce criticism from some in the business community.

The alliance of businesses has called itself, ‘Businesses for a Clean Economy’ and it includes many high profile companies and brands from both Australia and internationally.

Julia Gillard’s carbon tax will mean a A$23 per ton levy on energy intensive companies, with a full emissions trading scheme planned for implementation by 2015.

The statement issued by the group says, "As major Australian and international corporations, small and medium enterprises, operating across the Australian economy, we endorse the need for a carbon price as the mechanism to support the transition to a clean economy. A carbon price and complementary measures will assist Australia in remaining globally competitive, and will deliver new industries in clean energy, energy efficiency and low-carbon technology.”

"Pricing carbon allows business to choose how they reduce emissions and provides incentives for innovation. It unlocks jobs and investment in new industries, products and services. Importantly, it allows business to get on with the job of building a prosperous, clean, internationally-competitive economy."

Gillard remains under pressure on the issue however, with the opposition leader Tony Abbott, a climate change denier, vowing to repeal the tax if elected. Polls show Gillard is losing support over the tax issue and is likely to lose the next election.

In her fight back, she has claimed that the scheme will be used to reduce tax on householder’s energy bills and pension increases. "People will have the opportunity to judge [the carbon tax] for themselves," she told Australian television. "And what people are going to see is tax cuts."

It remains to be seen if this media campaign will change the Australian public’s attitude towards the tax, which is opposed by a majority of two to one.