5 July 2012: Brumby's carbon tax memo

Brumby’s pinged for carbon tax memo: Brumby’s Bakery Managing Director Deane Priest in an internal Backmix newsletter to franchisees: “We are doing a recommended retail price review which is projected to be in line with CPI, but take an opportunity to make some more moves in June and July, let the carbon tax take the blame, after all your costs will be going up due to it.” Opposition leader Tony Abbot handing out posters to stores that state “The federal government estimates that the carbon tax will increase the cost of energy by 10 per cent in its first year of operation. It will also increase the cost of our suppliers... We always strive to keep our prices at reasonable levels but because the carbon tax will make electricity more expensive, our prices will increase. We apologise for the increases.” If a company is caught with price rising conduct that is a concern, ACCC has power to issue infringement fines of $6600 or take court action with penalties of $1.1 million. [CR: As an executive be careful what you say in all communications, even if it is goaded on by political persuasion.] (Claire Stewart)

US auto industry beats expectations in June: US auto industry posted 22% rise in sales in June: Toyota 60.3%, Honda 48.8%, General Motors 15.5%, Chrysler 20.3%, Ford Motor 7.1%.