Canberra's retail and hospitality businesses which were already marginal would close in the next two to three years as a result of the costs burden imposed under Australia's new carbon tax, according to the ACT Chamber of Commerce and Industry.
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Chief executive Chris Peters said local business was devastated at the passage of the legislation yesterday and believed the tax was too much, too soon and would place Australia out of step with the rest of the world.
''Business in Canberra is much more sympathetic than the rest of the country to the idea of a renewable energy policy, and the policy is better understood here than anywhere else but that does not take away from the fact that it will place a significant tax impost on businesses which are already labouring because of global financial uncertainty,'' Dr Peters said.
''There is no doubt some marginal businesses will not survive this ... There is no compensation for business.''
ActewAGL chief executive Michael Costello said the estimated national average increase to consumers for gas and electricity was about $5 a week - which made up half of the overall $10 a week increase to the cost of living under the carbon tax.
But he noted Canberrans had higher than average gas and electricity use due to the cold climate.
As the ACT had electricity price regulation, it would be up to the independent regulator to decide whether price hikes under the carbon tax would be passed on to consumers after July next year.
Mr Costello said that while he would not want to preempt any decision, it was likely that a legitimate cost increase due to the carbon tax would be factored into next year's electricity and gas charges.
''I expect it would normally pass on a mandatory increase such as this.''
The carbon tax would also impact on distribution costs for power companies - that is, it would cost more to provide energy infrastructure through power stations and electricity poles and wiring.
Canberrans were, however, already paying the cheapest prices for electricity and had the most reliable supply, he noted.
Director of the ACT Council of Social Service Roslyn Dundas said low income and vulnerable Canberrans stood to gain a lot by both the passage of the legislation and the Household Assistance Package which accompanied it.
''That package goes directly to support vulnerable people so the impact on low income households will be beneficial,'' Ms Dundas said.
''We also know climate change will impact on low income and vulnerable families first and with greater force because these are the households that are less able to mitigate climate change or make changes in their spending behaviour or lifestyle.''
Acting Chief Minister Andrew Barr said yesterday was ''obviously a significant occasion in the Australian political debate. To see the Federal Government take substantive action on climate change is very encouraging for the ACT''.
Mr Barr believed there were ''some fantastic opportunities for our research institutions to partner with industry at a national and international level to deliver new renewable energy technologies - that's going to be really positive for the ACT economy in the medium term.'' Opposition Leader Zed Seselja said Canberra families would be worse off because the ACT's socio-economic makeup meant fewer households would be entitled to compensation.
''I think the cost of living pressures that local families are already facing as a result of ACT Labor are just going to be exacerbated.
''Small business, which gets no compensation, is going to feel it when it comes to electricity costs.''
The ACT Greens said Canberra was well placed to embrace the new low-carbon economy.
ACT Greens leader Meredith Hunter said the Greens had started the debate about a greenhouse gas reduction target for the ACT and last year the Assembly legislated a 40 per cent reduction by 2020.