Australia: Scott Driscoll, National President of the United Retail Federation, has cited the recently released Deloitte Index report* that has analysed the effects of the Gillard Mining Tax showing how seriously damaging the tax could be for the Australian economy.

“The report explicitly states that investments will move off shore and create massive uncertainty in the economy. There is no doubt this will cost the jobs of thousands of Australians both inside the mining sector and flowing right through to retail and small businesses in particular,” Mr Driscoll said.

“It is clear that this mining tax will drive up the cost of coal extraction, which will immediately send our electricity price spiralling out of control, adding cost blow outs at every single point along the food supply chain in Australia.

Mr Driscoll said that the damaging cost effects of the tax would be passed on to the entire food and retail supply chains and push up the price of everyday goods.

“The current mining tax model proposed by Prime Minister Julia Gillard which will add to the grocery and general retail costs of every single Australian household buying everyday products at shops across the country,” Mr Driscoll said.

“From the farm gate to the shop shelf, Australians are going to pay higher prices as a result of this destructive new tax unless the Prime Minister agrees to review it urgently,” Mr Driscoll said.

Source: http://www.unitedretailfederation.com.au/media_releases/2010