Carbon tax blamed for sliding confidence

15 Aug 2012, 10:30 am   -   Source: AAP

A survey has revealed international business confidence in Australia is falling and the federal opposition is blaming the carbon tax.

The "world's biggest" carbon tax is partly responsible for a decline in international business confidence in Australia, the federal opposition says.

In a survey conducted by the CEO Forum Group, executives of more than 100 multinational corporations have indicated growing concerns about investing in Australia, amid political uncertainty and growing costs.

Opposition industry spokeswoman Sophie Mirabella says the government's "gross economic mismanagement" by introducing "the world's biggest carbon tax" at the worst possible time was to blame for the fall in confidence.

The survey of 111 firms, published in The Australian Financial Review on Wednesday, found 41 per cent of international companies surveyed were less likely to invest in Australia than 12 to 18 months prior.

About 60 per cent of executives said political uncertainty had become worse during the past year to 18 months.

Ms Mirabella said despite strong economic data, such as low unemployment, the government had burdened Australian industry with poor policy decisions.

"It is not good enough to rely on the economic good fortune and the hard work of Australians that has brought the Australian economy to this point," she told reporters in Canberra.

"That is not a blank cheque for this government to introduce job-destroying, confidence-crushing policies like the carbon tax."

But Labor MP Amanda Rishworth said uncertainty stemmed solely from the Opposition Leader Tony Abbott, and plans to scrap existing policies.

"What the CEOs are saying is there is uncertainty," she told reporters.

They were concerned about Mr Abbott "ripping up" the national broadband network.

"They're unsure what's going to happen when it comes to carbon pricing, they're unsure what's going to happen when it comes to foreign investment."

Opposition climate action spokesman Greg Hunt called on Prime Minister Julia Gillard to "backflip" on her carbon pricing policy.

"The carbon tax is doing exactly what it was intended to do and hurting Australia's economy," he said.

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