Isra-Mart srl : What benefits from carbon?

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LABOR’S latest consultation group will examine the potential land sector benefits and opportunities available under a carbon pricing mechanism, through the Carbon Farming Initiative (CFI).

The Land Sector Working Group will see about 30 stakeholders from various land and agricultural sectors, including meat, grains, sugar, cotton and natural resource organisations, discuss the design of a carbon pricing mechanism.

The Group’s advice will be used to help inform the Government’s position on the Multi-Party Climate Change Committee; another of the government’s carbon consultation groups.

The fist meeting is expected to be held next month in Canberra with other forums staged during the carbon legislation’s development.

In announcing the scheme last week, Climate Change Minister, Greg Combat, said the new Group would ensure all land based sectors of the economy were well placed for a smooth transition to a low carbon future.

“The Government is aware of the need for the land based sector to move towards a low carbon future while enhancing productivity and the best way to achieve this is by working with experts across primary industries,” he said.

Federal Agriculture Minister, Joe Ludwig, said the new body would provide the Government with invaluable advice on the opportunities presented by putting a price on carbon and on the CFI.

Senator Ludwig said the Government had already confirmed agricultural emissions would not be included in a carbon price mechanism.

But he said there were opportunities for the agricultural sector to participate in abatement measures through the CFI, to hep reduce climate change effects.

Members include; National Farmers Federation President Jock Laurie; GrainCorp Corporate Affairs Manager David Ginns; Carbon Conscious CEO Peter Balsarini; CBH Chairman, Neil Wandel; Dairy Industry Association of Australia President Doug Eddy; Elders CEO Malcolm Jackman; Forest Industries Association of Tasmania CEO Terry Edwards; and Murray-Goulburn Co-operative GM Industry and Government Affairs Robert Poole.

Horticulture Australia Limited, JBS Swift, Viterra Australia, Australian Landcare Council, the National NRM Regions' Working Group, Qld Cotton Corp, T&R Pastoral and The Climate Institute are some of the other members.

Barley Australia was not invited to join the new Group and the peak industry body but has concerns with the concept.

Barley Australia recently took the lead for grains industry groups, expressing public concerns about the carbon tax’s potentially negative impacts on agriculture and barley production, especially for the malting industry.

They also said the was a concerning lack of detail on the Gillard Government’s scheme and specific information about its impact on input costs such as fuel, power and fertiliser, which are derived from a carbon source.

The organisation’s Executive Chairman, Andrew Gee, said the government’s new consultation Group seemed to be “yet another committee to allow the Government to spread the blame”.

“Maybe the members will actually tell the committee what a disastrous effect this scheme will have on both the rural and overall economy,” he said.

Mr Ginns said GrainCorp’s policy position viewed the carbon tax as being “inappropriate”, particularly for trade exposed industries like the grain sector.

“While agriculture may be exempt from the proposed tax, additional costs incurred in the off-farm supply chain resulting from the imposition of a tax, are highly likely to be passed back to grain producers, as additional costs are not able to be passed on to export customers, or domestic consumers,” he said.

“This will be the case for the storage, handling, and transportation of grain and for the processing of grain, in our case into flour and malt.

“Thus, growers are likely to see an immediate reduction in net income equivalent to any new costs imposed on the grain handling and processing sectors, as new costs are passed back.”

Mr Ginns said relief for trade-exposed sectors should be included in any scheme, like with the GST, to ensure Australian exports were not subject to taxes and charges not levied on production from competitors.