'Food supply chain will be hit hard'

THE Federal Opposition has jumped on a report from the Department of Agriculture showing the cost of transport for the food industry may rise as a result of the impending carbon tax.

Opposition spokeswoman for industry Sophie Mirabella said the national food supply chain would be hit hard by the tax.

She said as more food was moved by truck, rising fuel costs would bite the industry from July 1 when the tax came into force.

"Add this to increases in costs to food manufacturers, and you have a double whammy on the cost of living," Ms Mirabella said.

"This is yet another unintended consequence of the carbon tax and it won't be the last."



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