The Gillard government's plan to use the ACCC to gag small businesses from informing consumers of price increases due to the carbon tax is a further attack on the struggling sector.
No Treasury modelling has been produced to back up Julia Gillard's claim that any price rise of more than 1 per cent is a price gouge consumer rip off.
Instead of a proper and credible assessment of her carbon tax impact by sector, business type or specific product or service, Julia Gillard has issued a threat of a 1.1 million dollar fine for businesses that dare to contradict her political spin.
Small businesses will risk being fined if they are asked to explain prices rises to consumers.
The Government has failed to understand the clear and obvious complexity of calculating the carbon tax impact and has not bothered to properly assess the impact by sector, business or item.
Julia Gillard's use of the ACCC to prosecute small businesses who talk about the carbon tax is more about the Government protecting its own self serving political claims than protecting consumers from unjustified carbon tax related price increases.
The Prime Minister has declared what is an 'acceptable' price rise and declared war on small businesses facing the real cost increases, without realising any justification for her declarations.
The government is under-resourcing and undermining the ACCC's ability to properly calculate the true price impact of the carbon tax on the goods and services.
Price movements will depend on where inputs are sourced, the production process and service systems, different price adjustments from different suppliers, the channel to market and mark-up and margin practices.
The same items that may have once had the same price will be impacted quite differently by the carbon tax, depending on almost limitless variables.
Even the Treasurer has been unable to explain the different impact of the carbon tax on a can of locally produced tomatoes and a can imported from overseas.
If Julia Gillard was genuine about fairly investigating price rorts, instead of intimidating small businesses, the government would devote adequate resources to the ACCC to do this important work as the Coalition did at the time the GST commenced.