BRADBURY:
It's less than two weeks since we introduced the carbon price. We all recall that Mr Abbott indicated that he would be spending every day between now and the next election fighting against the carbon price. Less than two weeks after its introduction and his reckless and irresponsible scare campaign has been grounded so he can jet off overseas.
We all remember at the start it was going to be a cobra strike, then it was going to be a python squeeze, now Mr Abbott is slithering off overseas to avoid any debate around this issue.
I also note that in the newspapers this morning there are some reports of particular companies involved in seeking to charge the carbon price with GST applicable to it. To be specific, the claims that are being made by some companies are that they have to increase their prices because they are subject to a carbon price of $25.30, inclusive of GST.
Let me absolutely clear about this. The GST does not apply to the carbon price. We specifically amended the GST laws to ensure that the carbon price is exempt from GST, that the imposition of the carbon price, payments made under the carbon price are GST free. If companies are out there suggesting that they have to jack their prices up because they are being subject to a carbon price of $25.30 inclusive of GST, they face the danger of misleading their consumers and falling foul of the Australian Consumer Law, and if they are in breach of those laws they can face fines of up to $1.1 million. So my message to all businesses is don't jack up your price and falsely blame the carbon price. If you do so, you're misleading your consumers and in doing so you could be breaking the law.
JOURNALIST:
It must be a big concern for you that these companies are abusing the system [inaudible]?
BRADBURY:
If there are businesses out there that are jacking up their prices and falsely blaming those increases on the carbon price then we have very strong laws in place and the ACCC as an independent body are investigating matters as and when they are brought to their attention. The matters contained in the newspapers this morning I have referred to the ACCC, I have brought these matters to their attention. They are independent but they will investigate matters that are brought to their attention.
It's also a timely opportunity to remind all consumers that if you see a business jacking up its prices and blaming those price rises on the carbon price, ask questions. Challenge the business about the claims that they are making and if you are not satisfied with what they have to say, pick up the phone and call the ACCC. They have a dedicated hotline and can be reached on 1300 303 609.
JOURNALIST:
Do you know how many companies are being investigated by the ACCC?
BRADBURY:
The ACCC has released some data in relation to the complaints that it has received. It has received more than 600 complaints and it has a number of ongoing investigations that are live. Of course the ACCC is independent of Government, that is appropriate that that be the case, so that they can conduct their operations in investigating these claims completely free of any interference from the Government.
JOURNALIST:
[Inaudible]
BRADBURY:
When the ACCC provided some data about the level of complaints that they've received, they made the point that the level of complaints is quite low compared to when the GST was introduced, and they've also made the point that the number of complaints they are receiving in relation to the carbon price is a very small proportion of the overall number of complaints that they are receiving across their full scope of regulatory activities. So we've always believed there would be some bad apples out there and where a company and a business is engaged in trying to take advantage of the carbon price to jack up their prices and to falsely blame increases in prices on the carbon price, we've got a strong cop on the beat, we've provided additional resources to the ACCC and there are very strong laws in place to make sure that if someone is doing the wrong thing, then they can be pursued.
JOURNALIST:
And just again, I know you touched on it, what's your advice to people [inaudible]
BRADBURY:
As a consumer or a business having goods supplied to them by another business, if you believe that the party you are dealing with is making claims that may not be true about the carbon price, challenge them about the claims they are making, don't be afraid to ask questions and if you're not satisfied with the response that they provide, pick up the phone and call the ACCC, they have a dedicated hotline and can be reached on 1300 303 609.
JOURNALIST:
So there is a lot of creative accounting going on here, what are the chances of getting your money back [inaudible]
BRADBURY:
We take the view that it is important that consumers are aware of their rights and as consumers they have the right to ask questions of the business involved and if businesses are making false claims in relation to the carbon price then there are a range of actions the ACCC can take but of course the most serious of those involve penalties of up to $1.1 million for corporations. So, as a consumer, be aware of your rights. If you smell something suspicious, ask questions of the business or the supplier, don't be afraid to challenge them and don't be afraid to pick up the phone and call the ACCC. We've already seen in a number of cases where consumers were being ripped off when these matters were brought to the attention of the ACCC and to the public more generally, those companies have sought to make amends for the error of their ways.