The Palmer United Party’s back-flip over scrapping the Carbon Tax is causing nervousness in the Australian business sector. That was the message from Richard Goyder, Chief of Wesfarmers (owner of Target, Kmart, Bunnings and Coles And this uncertainty, he went on, is leading businesses to be more cautious in a time when they should be expanding.

Richard Goyder. Photo:

Richard Goyder. Photo:

Mr Goyder pointed to the climbing jobless figure (now 6% of the nation) as evidence of the lack of confidence frm Australian businesses. The removal of the Carbon Tax will result in cheaper prices at the check-out for consumers, regardless of whether savings were mandated by the Senate or not. With the Carbon Tax gone producing and transporting goods becomes cheaper, but the competition remains; any businesses absorbing the savings will be undercut by those who aren’t – and lose contracts as a result.

Catherine Livingstone, president of the Business Council of Australia, echoed Mr Goyder’s comments. “Failure by the parliament to repeal the Carbon Tax by next week will create significant uncertainty for businesses, particularly electricity retailers, with flow-on consequences for consumers.”

The larger impact of this uncertainty will be felt in Australia’s credit rating. Should the savings of the Federal Budget be unobtainable (because of the political sideshow created in the senate) then Australia’s AAA credit rating will be the first casualty. Exports and foreign investments will follow quickly as a result.

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