Local jewellers are worried that the proposed carbon tax will affect consumer confidence
Grim outlook for jewellers following carbon tax
Posted July 26, 2011 | By Sonia Nair
Peak retail associations are leading calls against the carbon tax, with the Australian Retailers Association (ARA) launching an advertising campaign against the government’s proposed tax.
ARA executive director Russell Zimmerman said retailers are the catchment point of price rises that will leave the majority or households out of pocket due to the increased cost of living.
“There are too many households that will miss out on any compensation at all as a result of an estimated $9.90 increase per week in the cost of living. Tax cuts averaging $10.10 per week for only 40 per cent of households leave little margin for error and don’t go far enough to absorb other costs people will face on top of household and utility costs such as the cost of consumer goods,” Zimmerman said.
“Retailers are at the very end of the manufacturing and supply chain, and cost increases along the line will ultimately be caught by them,” Zimmerman added.
Jewellers Association of Australia’s (JAA) chief executive Ian Hadassin agreed with Zimmerman. “The main impact increase uncertainty in the mind of consumers as they will only know the real impact on their income once the tax is introduced and works itself through the economy,” Hadassin said.
“This uncertainty will cause consumers to cut back on their expenditure, particularly with regard to discretionary items,” Hadassin added.
Despite the grim outlook of retail associations, a number of retailers are embracing the proposed carbon tax. Thomas Meihofer who owns an eponymous jewellery design company in Western Australia said the current gloomy retail climate is due to the global economy rather than the carbon tax.
“The weak outlook for growth in Europe and the US is affecting business confidence in Australia,” Meihofer said.
“I expect the jewellery industry will probably go through a bit of a rough patch for a little longer, but I don’t believe our industry is in a worse situation than any other. It will clear some dead wood so to speak,” he added.
Natalie Barney, director of New South Wales-based Windfield Jewellery echoed Meihofer’s views and said the carbon tax would help Australians make a stand for the future.
“I do think that overall people need to look beyond themselves and their individual situation and think of the good of the country. Retail wise, maybe this will give Australians the jolt we have been looking for to stop being scared of what is not there and to embrace changes as a positive move,” Barney said.