The Productivity Commission  has released a consultation paper outlining the Commision’s general approach to industry reviews that it will undertake under guidelines issued by the Government on 15 June 2012.

 

From 1 July, a firm (or group of firms, or an organisation representing firms in a particular industry) is able to submit a request to the Government that the Commission assess the impact of the carbon pricing mechanism on their industry.

 

The Guidelines provide that firms requesting a review must submit preliminary evidence that they or other members of the industry are being ‘significantly adversely impacted’ by the carbon price, that this is likely to ‘persist’ and either give rise to carbon leakage or the ‘premature’ closure of an industry, or both.

 

The Government retains discretion as to whether it will refer a request for review to the Commission, based on its assessment of the evidence submitted.

 

The Consultation Paper is available here.