Wesfarmers and Boral chairman Bob Every has thrown his support behind a carbon tax, while declaring a price on emissions as “inevitable”.
Mr Every’s comments come as debate grows in business circles on the merits of a carbon tax over an emissions trading scheme, with BHP Billiton chief executive Marius Kloppers having supported a carbon tax.
“I personally favour a carbon tax. I think we’ve just gone through a GFC where we saw misuse — too much use — of derivatives,” Mr Every told yesterday’s The Australian and Deutsche Bank Business Leaders Forum.
“So I don’t see personally why we should introduce another derivative. I think if we do have a price, it should be a carbon tax.”
Julia Gillard had said during the election campaign that she would not press for a carbon tax, but she has more recently said she would not play “rule in, rule out games” on models for consideration. The Greens have been open to a carbon tax ahead of a full emissions trading scheme.
The comments at yesterday’s forum highlight the complexities facing the multi-party climate change committee established last week by the government.
The committee is charged with building consensus on options for a climate price. As well as looking at models, this may also mean confronting other prickly issues such as compensation of emitters.
Mr Every yesterday said emissions-intensive industries that were competing globally would “have to be recognised, otherwise we will just be exporting jobs and industries”.
Telstra chairman Catherine Livingstone said a carbon price would drive investment in technology. But reflecting the extent to which the carbon price model is a contested area in business circles, she said: “I agree with a carbon tax rather than another mechanism.”
ANZ Banking Group chairman John Morschel said the climate change committee needed to consider “the energy needs, the economic needs and also our security needs while planning to reduce carbon emissions”.
“All we are looking for is a balanced view with a thorough business case developed as to the impact of these changes,” Mr Morschel said.
Mr Every said he did not think it was an issue of leading, as New Zealand, Europe and the city of Tokyo had priced carbon.
“I think the concept of leading is wrong, and probably places Australia beyond our station,” he said.
National Australia Bank and Woodside Petroleum chairman Michael Chaney said he had long held a view “that we should not be ahead of the pack” and Australia should not be acting before “major emitters”.
Mr Chaney also stressed the need for investor certainty.
He cited “looming issues” for electricity generation, which echoed concerns raised by the energy sector that investment had been paralysed by policy uncertainty.
“I think what’s sufficient is for government to state a target and decide the policy means of achieving it, whether it is emissions trading, a carbon tax, or other means, as outlined by the opposition,” Mr Chaney said. “Because once you’ve got those things agreed, the companies involved in these things can model and can come to some view of pricing.”
