In response to Mr Abbott’s comments, in this column, February 9, regarding impacts of carbon pricing on airfares and regional tourism, some clarification is needed.
Recent changes to air fares are the result of fuel price rises and nothing to do with pricing carbon emissions. Qantas’ fuel costs for the six months to December 31 were $2.2 billion, up by about $450 million on the same period in the previous year. Qantas says jet fuel is its biggest operational cost and average prices in the financial year so far are at their highest level in three years.
Also, airlines were also now included in the European Union’s emissions trading scheme, which would cost Qantas an estimated $2.3 million in 2012. This has nothing to do with the pollution levy to start in Australia on July 1.
Within Australia, Qantas will introduce one-way domestic “carbon surcharges” from July 1, ranging from $1.82 to $6.86, depending on the flight distance.
We can see that any impact of carbon pricing on air travel is insignificant against the backdrop of fuel prices which will continue to rise with increasing demand and ever reducing supply, whilst the price of a seat on a domestic flight can vary 400 per cent or more, depending on the conditions attached.
With regard to Mr Abbott’s claim that, “every cost associated with enjoying an Australian holiday will rise”, I draw to readers’ attention guidelines issued by the Australian Competition and Consumer Commission which state:
“The Australian Consumer Law protects Australians against misleading claims made in relation to goods or services. In particular, these laws prohibit businesses making false, misleading or deceptive claims attributing any increase in the price of goods and services to the introduction of a carbon price. If you do choose to make a claim about the impact, you need to make sure it is right………… If you are going to make a claim about the impact of a carbon price on your goods and services, be accurate and truthful and always be ready to substantiate your claims.”
Of course, Mr Abbott doesn’t have to substantiate his claims, although it would be helpful if he did so. With respect, these comments are disappointing and simplistic, to say the least. Consumers have the right to expect more articulate policy comments from the current leader of our alternative government.
And finally, nine out of ten Australian households will receive financial compensation, starting soon, for the small increase in costs associated with the introduction of a carbon levy on the nation’s top 500 polluters.
Steve Lockhart
Coordinator Climate Change Australia
Hastings Branch
