No relief for small business in new climate change deal – power bills tipped to jump $1,500

The Rudd Government’s new climate change deal, which has been endorsed by Federal Opposition Leader Malcolm Turnbull, does not contain any assistance for small businesses, despite increased compensation for energy companies, heavy industry and households.

The deal, which remains the subject of fierce debate among Coalition politicians and is no certainty to pass the Senate by the end of the week, does contain measures to help those industries hardest hit by the introduction of an emissions trading scheme.

Energy producers will receive an extra $1.3 billion in assistance, heavy industry will get another $1.1 billion, and agriculture has been excluded from the emissions trading scheme entirely.

The Government has also pledged to provide compensation to households and individuals that take steps to reduce their carbon footprint.

But for small business? Nothing.

An extremely unimpressed Jaye Radisich, chief executive of the Council of Small Business of Australia, has fired a letter off to Federal Small Business Minister Craig Emerson urging him to push for some assistance for SMEs.

“While we appreciate that significant policy work has been done to develop a CPRS for Australia thus far, it is extremely disappointing that the needs of small business have not been recognised in the latest incarnation of the proposal,” Radisich wrote.

“There is no doubt that the introduction of a CPRS will require adjustments for both the community and for business. However, it is difficult to accept that households and large businesses will be supported by Government through this transition, and no mention is being made of support for small business.”

An early estimate of just how much SMEs will feel the impact has been released by Tim Wolfenden, CEO of Make It Cheaper, an online gas and electricity price comparison dedicated to small businesses.

He says that while consumers could see $420 added to their electricity and gas costs, a small business could see their own energy costs go up by $1,500.

And that doesn’t include indirect cost increases from things such as higher transport costs and higher raw material prices.

“Those costs are very hard to measure. You’ll only really know what the full costs are when you’re in the thick of it.”

Wolfenden says the Government’s climate change package needs to include some measures to actually encourage small businesses to reduce their carbon footprint.

“The emission trading scheme is needed because it will focus households and small businesses on becoming greener. But there needs to be the right incentives in place to make sure small businesses get involved and demonstrate that there are some benefits to reducing your power use,” he says.

“The small business owner will be feeling a lot of stick at the moment and not enough carrot.”