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Victorian farmers face increase in electricity prices as a result of carbon tax

Farmers are preparing for an increase in electricity prices  16000646 800480346 0 0 4000259 300

The new carbon tax is set to have a serious impact on Victorian farmers, with electricity prices to increase 16 per cent on July 1.

According to the Victorian Farmers Federation (VFF), the average farmer paying $30,000 in electricity prices will see additional costs of $5,000 extra per year under the new pricing structure, which was announced June 1.

President of the VFF Peter Tuohey has strongly criticised the move, claiming that most farmers are dependent on electricity as they do not have access to natural gas.

Tuohey noted that the price rise is just the latest in a series of expenses that have impacted Victorian farmers, including the implantation of new safety measures following the 2009 Black Saturday bushfires, which claimed the lives of 173 Australians.  

“Now, they’ve hit us with another whopping increase. It just means dairy farmers, pig producers, cool-store operators and many irrigators are going to find it that much harder to remain competitive," said Tuohey.

Meanwhile, opposition leader Tony Abbott has continued to oppose the carbon tax, speaking to press at a Gold Coast rubbish dump, he claimed that council rates will rise as a result of the tax impacting landfills.

"It's going to be a python squeeze rather than a cobra strike," said Abbot

"But it is going to hurt from day one. And as time goes by it's just going to get worse and worse and worse."

 

Posted by Charlie Moore