Transcript

LEIGH SALES, PRESENTER: The hard sell is on in earnest with politicians criss-crossing the country to spruik their competing views of the carbon tax. Shortly I'll talk to political editor Chris Uhlmann in Canberra for his analysis, but tonight we're mostly going to shift the focus away from politics. Instead we'll concentrate on what this policy means for Australian households and businesses.

Our coverage tonight starts with Scott Bevan, who's found that some families are already preparing for a greener future.

SCOTT BEVAN, REPORTER: It's the morning after Carbon Sunday, and a nation tussles with two big questions that the Prime Minister set out to address.

JULIA GILLARD, PRIME MINISTER: I want to talk to you tonight about why the Government is putting a price on carbon and what this means for you.

ALICIA CAMPBELL: Long term, I think this will be a very important day that we're actually making a step to reduce our carbon.

SCOTT BEVAN: In a northern Sydney suburb along a line of rooves, there's one that indicates when it comes to leaving a carbon footprint, this home's owners, Jason Young and Alicia Campbell, are trying to tread lightly.

So this isn't just your backyard, this is also your power station, huh?

ALICIA CAMPBELL: Yes.

SCOTT BEVAN: How many have you got?

ALICIA CAMPBELL: We put 18 up there and it gives us three kilowatts.*

SCOTT BEVAN: And what's that mean in terms of household use?

ALICIA CAMPBELL: Most of our summer - in fact all of our summer electrical use and most of our winter.

SCOTT BEVAN: Wow.

JASON YOUNG: We're minimising the effect that any increases in the cost of living would have if a carbon tax does cost us more money.

SCOTT BEVAN: Jason Young and Alicia Campbell hope that the Government's pricing of carbon prompts similar thinking in homes and companies right across Australia.

JASON YOUNG: I'm quite sure and quite positive that everyone would adapt. The longer you put it off, the more opportunities are lost, particularly for the economies.

RICK SOOLE, TRUCK DRIVER: I think it's, in plain terms, just a grab for money.

SCOTT BEVAN: Rick Soole operates a small fleet of trucks out of Brisbane. He argues while the industry has been doing its bit for the environment with increasingly efficient and cleaner trucks, the financial squeeze has been growing in running costs, including at the bowser.

Rick Soole says the pressure will increase such as when trucks' fuel becomes subject the tax after two years, and that pressure will be felt along the line.

RICK SOOLE: That means everybody, whether you're paying at the checkout, paying for your fuel, whatever you're buying, it's gonna have to be absorbed by the consumer.

SCOTT BEVAN: The Federal Government has estimated that the tax will add $9.90 to average weekly expenditure, but says the raft of assistance packages means households will be compensated on average $10.10 each week.

MATT LEVEY, CHOICE: As a consumer group, we accept there is a cost associated with dealing with climate change. That cost is gonna wash through the economy. You're gonna see some things increase. So a debate which is I guess focused around a 10 or 20 cent difference in compensation is to some degree missing the point. The point is to make sure that those who need compensation the most get it.

SCOTT BEVAN: Matt Levey is from the consumer advocates organisation Choice. He says while the tax's effect on household expenditure may be modest it does come on the back of whole lot of other price increases. And there's also concern that some businesses may use the tax as an excuse to pass on unrelated costs.

MATT LEVEY: It's something that we've identified in our response to yesterday's announcement as a real risk. So, for example, in New Zealand, where they introduced an emissions trading scheme not long ago, it was identified there, particularly in the energy sector as a factor, that companies who are under a range of pressures, whether from the exchange rate, whether from rising costs from other factors, are actually gonna blame the carbon price for slugging consumers. We'd like to see the ACCC take a more active role to actually be empowered to be an effective deterrent against that sort of behaviour.

SCOTT BEVAN: And there's a lot of estimating and questioning about what the carbon tax could mean for that most fundamental group of items, food.

KATE CARNELL, AUST. FOOD & GROCERY COUNCIL: Well we can't understand the figures that the Treasurer released yesterday and that was only an increase of 0.4 per cent in food and grocery prices, and of course that wasn't backed up by any modelling at all. So we're really urging the Treasurer to make those figures available so we can have a look at them, because at the moment we just don't understand them.

SCOTT BEVAN: Kate Carnell from the Australian Food and Grocery Council says it's keen to continue talking with the Government about its concerns.

KATE CARNELL: Right across the supply chain, we'll see incremental increases, but the real concern for us is that the same increases won't hit imported products. So Australian manufactured goods will be just that much less competitive with imports that are already cheap because of the high Australian dollar.

RICK SOOLE: I think it's very complex. I think it's gonna be very costly. And I think it's crazy. I don't think Australia's ready for it. I don't think Australia needs it.

SCOTT BEVAN: To Jason Young and Alicia Campbell, whatever financial costs the carbon tax may bring to their family is minuscule compared with the toll that could be exacted if more isn't done to combat climate change.

ALICIA CAMPBELL: It will be painful and uncomfortable if we have to pay more, but in the long term, I'm making a difference and I really care about that. I can look in my children's eyes and know that I am making a difference that will make their world better and their children better. And that's more important than money.

LEIGH SALES: Scott Bevan reporting.