A Senate committee examining the impact of the carbon tax pricing mechanisms will hold a hearing in Tamworth.

The Nationals Senator for New South Wales John Williams who is a member of the Senate Select Committee on the Scrutiny of New Taxes says the hearing will be held in Tamworth on Wednesday the 3^rd of August.

He said it is an opportunity for northern people to lodge submissions about how they believe the carbon tax will affect them.

"The committee is keen to hear from business owners, the farming sector, community groups and local government. Although most are still unsure what extra costs will impact on their operations, they can be guaranteed that electricity will rise by at least ten percent.

Local government will face increased construction costs, and unless they receive compensation, it would mean higher rates or reduced services.

The government says agriculture is exempt from the carbon tax, but that is incorrect. Farmers will still pay more for inputs like energy, fertilizers and chemicals.

Charitable groups also face increased running costs.

A number of witnesses will be invited to appear at the Tamworth hearing.

I urge people to lodge submissions as soon as possible, and details are available at http://www.aph.gov.au/Senate/committee/scrutinynewtaxes_ctte/carbontax/index.htm or through my office on 67 21 4500", Senator Williams said.