This submission was prepared by the Business Council of Australia in response to the Productivity Commission consultation paper titled Carbon Policy Assistance Reviews: The Commission’s Tasks.
That consultation paper raises a number of important policy and process matters and highlights some of the complex issues that will need to be dealt with as the legislation is put in place.
This BCA submission specifically addresses the role of the Productivity Commission in relation to the Jobs and Competitiveness Package.
The Productivity Commission has identified as one of its priorities the need to clarify the key policy objective/s for the assistances under the Jobs and Competitiveness Package.
The BCA submission calls on the Productivity Commission to give detailed consideration to two objectives:
- the first is that arrangements for industry should provide transitional assistance to ensure a smooth transition to lower emission intensity
- the second is that where assistance, either through free permits or other means, is provided to industries it is sufficient to offset the costs imposed by all emissions reduction measures such that they retain their same competitive position relative to trade competitors in those products.