Tax will hit jobs hard in region
ONE of Rockhampton's foremost businessmen predicts that the implementation of the carbon tax on July 1 will have a significant impact on local employment.
Managing director of JM Kelly Geoff Murphy said no one knew what impact the carbon tax would have on the region's business sector and it was a dangerous time for businesses trying to move forward.
"We haven't been able to put a cost on what this will cost our business. It's a multi-layered tax … we don't just pay it once, we pay it many times … tax on tax then GST.
"We're not able to assess the true costs so when we price articles going forward we're guessing to a certain extent what our additional costs are going to be," he said.
A spokesman for Member for Rockhampton Kirsten Livermore said JM Kelly wouldn't pay the carbon tax but Mr Murphy said that was an absurd statement.
"You can't expect Rockhampton City Council (sic) to provide services when they're paying carbon tax without passing it on. We'll pay it in fuel, power, rates … I could go on and on.
"There is no question all businesses are going to be affected. A lot of businesses are just hanging on. For some it will be just too hard and we'll see them close down."
JM Kelly employs 400 people, including 75 apprentices.
"Without a shadow of doubt, jobs will be lost. The impact on employment will be bigger than we think," he said.
