Senator Fiona Nash

The Australian farmers' job just got harder

Australian farmers have had their job in producing our nation’s food made even harder with the carbon tax passing the senate today. 

Labor and the Greens used their numbers in the senate to first cut short debate on the carbon tax legislation and then ram it through.

Nationals Senator Fiona Nash said regional Australia will be hit hard by the tax from next July, with wide ranging impacts.

“Our farmers will be among the hardest hit and they have no-one to pass the increased costs on to,” she said. 

"Australian Farm Institute research commissioned by the National Farmers’ Federation show farmers across all sectors will face added costs in the tens of thousands of dollars. 

“Processors and abattoirs have also warned they’ll have to pass on added costs to farmers. 

“Further, increased electricity costs are a huge worry for farmers. And the issue of how they’ll afford to carry out irrigation efficiencies burdened by increased electricity costs is a real concern.” 

Senator Nash questioned government minister, Senator Penny Wong, regarding what modelling was done to determine the average increased electricity costs to farmers from the carbon tax, and what assistance, if any, will be provided to cover these costs. 

“The minister replied the government didn’t do cost analysis by occupation. Farming is not just an occupation – Australian farms and closely related sectors generate $155 billion-a-year in production, underpinning 12.1 per cent of GDP,” she said.[1]

“Minister Wong said the food processing sector can also apply for grants under the Food and Foundries Investment Program but neglected to say industry will have to cough up $3 to the government’s $1 contribution. 

“Further she referred to tax cuts to help ease the carbon tax cost burden but neglected to say the government’s also increasing the tax rate applying to lower income levels from 15 to 19 cents, and from 30 to 33 cents, which will clawback much of the assistance families can expect.”

Senator Nash asked the minister if the carbon tax impacts on farming had been considered or discussed as part of the National Food Plan. The Minister could not provide an answer. 

“It seems bizarre that, at a time when we should be focusing as a priority on the importance of our future food production and food security, that this government would make the job even harder for our farmers. It makes a mockery of the government’s so called National Food Plan,” she said.

Senator Nash also asked the minister how the government will ensure adequate compensation for high living costs when an emissions trading scheme takes place in 2015. 

“The minister’s best response is that compensation will be assessed each year. It’s hardly reassuring when the carbon price will fluctuate daily according to the market,” Senator Nash said. 

“This government has clearly made no attempt to understand the carbon tax impact on farming. And the regional Independents who backed this toxic tax have a lot to answer for. 

"It is also a very sad and dark day for democracy when a government forces a tax on the Australian people who don’t want it.”