Master Builders Australia will not support the introduction of a carbon tax unless the government allocates compensation for the industry.
The organisation has announced that it will oppose the proposed July 2012 start date, unless the cost impact and uncertainty in relation to the increased cost to housing and to the building industry was properly addressed and appropriately compensated for.
Wilhelm Harnisch, CEO of Master Builders Australia said: "These concerns have been expressed in writing to Minister Combet in the last month and at a meeting with Minister Combet's senior advisers in a meeting at Parliament House [yesterday].
"Master Builders' concerns stem from independent research by The Centre for International Economics, based on carbon price assumptions under the CPRS, of a likely cost increase of 5 per cent on the building and construction industry.
"The role of the building industry in helping reduce carbon emissions is recognised but what is not well understood is that the building industry is already playing a proactive role through increased mandatory efficiency stringency measures.
"These measures will see carbon emissions reduce over time and must be taken into account in the architecture of a market based response by Government.
"In other words, clients, investors and new home buyers are already paying for a lower carbon emissions future and from 1 July 2012 will be asked to pay even more.
"Despite promised compensation to low income households for increased energy costs the reality is that households will have to pay more for their housing whether for rental or purchase of new housing and the increased costs of building will be most acutely felt by households on average incomes.
"The building industry has many carbon intensive inputs such as cement, steel, aluminium, glass and bricks and it would defy logic if it were claimed that the carbon tax would not increase the costs of these materials.
"The impact of the carbon tax will not be neutral, and will come at a time when industry conditions will likely still be soft.
"Big business may well have to bear the initial cost of the carbon tax but these costs will be passed on to small businesses in the building and construction industry which in turn will pass the costs on to investors and new homebuyers thereby increasing rents and the cost of home ownership."
"Master Builders has urged Minister Combet to consult the building and construction industry to discuss our strong concerns and not just focus on concerns of the trade exposed sectors."
