The Federal Chamber of Automotive Industries estimates the impact of the carbon tax on the local automotive industry as a whole will be at least $30 million a year.
The new carbon plan is set to start on July 1, 2012, with the Emissions Trading Scheme to start on July 1, 2015, at which time the price of carbon will rise to $29 per tonne.
Holden has announced that it does not fit into the Government’s criteria as an ‘emissions-intensive, trade-exposed industry’ (EITE), despite designing, engineering and manufacturing vehicles for domestic and overseas markets.
As a consequence, it and many other major manufacturers will only be potentially eligible to apply for compensation to partly offset the impact of manufacturing under the $1.2 billion Clean Technology Program.
Holden says the compensation measures are a “step in the right direction”, but says the government needs to understand how much competition there will be for funding from other manufacturing sectors.
“It is also critical to understand the extent to which the compensation package will address the competitive disadvantage imposed on local manufacturers who compete in a market where 85 per cent of new vehicle sales are imported models,” Holden said in a statement."
Holden says it is still reviewing the details of the scheme, while Ford Australia and Toyota Australia are yet to make an official statement.
We will keep you posted on the developments over the coming days. Stay tuned.
Until then, have a read of our editorial on the carbon tax and its impact on Australian drivers.