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The Forum > General Discussion > Manufacturing plants start to close ahead of Carbon tax.

Manufacturing plants start to close ahead of Carbon tax.

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http://www.abc.net.au/news/2012-05-23/aluminium-company-blames-carbon-tax-for-closure/4028916

UNIONS will tomorrow demand a five-year federal government support package for the aluminium smelting industry to protect 15,000 jobs, in the face of the likely closure of the Kurri Kurri smelter near Newcastle.

The decision, which is expected to cost 344 jobs directly and many more indirectly, ignited a bitter debate over the carbon tax during question time in parliament and sparked calls from John Hannagan - the Australian chairman of Rusal, a major rival aluminium producer - for the carbon tax to be deferred.

Apart from the devastating impact the likely demise of the Kurri Kurri plant will have on NSW's Hunter region, power industry sources predicted potential ramifications for the NSW government and the electricity sector.

Given that the carbon tax is already a wrecking ball swinging through the aluminium industry, the coal industry, the steel industry and the aviation industry, will the Prime Minister apologise for the 344 workers and others whose livelihoods are now imperilled by her broken promise never to have a carbon tax?
Posted by Shadow Minister, Thursday, 24 May 2012 4:38:01 AM
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SM, from your linked ABC News article:

Opposition's environment spokesman, Greg Hunt said:

<< the carbon tax is the straw that broke the camel's back >>

So he is really saying that the carbon tax was a very small factor, on top of much bigger factors.

Liberal Bob Baldwin, Federal Member for Patterson, said:

<< previous job losses there have been due to the high dollar and low aluminium price, …. today is the first time Norsk Hydro has blamed the carbon tax. >>

So let’s not just blindly blame the carbon tax, or Gillard for introducing it, despite it being a backflip.

One thing this country desperately needs is incentives to get off of our addiction to fossil fuels, especially oil.
Posted by Ludwig, Thursday, 24 May 2012 9:29:37 AM
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many local councils are now going to have to pay millions more to run their tips due to the carbon tax. Again the average Joe Blo will pay despite the lies of the Government. Election please!
Posted by runner, Thursday, 24 May 2012 11:03:41 AM
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You know, it's almost as if our government has decided that given we are in better shape than the rest of the civilized world, it would be best that we introduce a ,self imposed, handicap, by way of the worlds largest tax on carbon.

If only it were a horse race.

I second the motion election please!
Posted by rehctub, Thursday, 24 May 2012 11:30:21 AM
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http://www.climatespectator.com.au/commentary/abbotts-carbon-tax-deception-point?utm_source=Climate%20Spectator&utm_medium=email&utm_campaign=2478c413a7-CSPEC_DAILY

It's a bit more complicated then that, SM, but of course we don't
want the facts to interfere with good old politics! Abbott is
shin kicker, not the sort of leader that Australia needs.
Posted by Yabby, Thursday, 24 May 2012 1:08:15 PM
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Yabby,

Trade in commodities is all about the margins. The rise in the dollar lowered the sale price, but also the cost of the raw materials (bauxite) but not the Australian based costs. A plant making a small loss can try and ride it out, but large losses close the plant.

The carbon tax is not going to affect the manufacturers that are very profitable, but the ones already doing it tough will go to the wall. People that would have invested now won't.

For ever plant that closes because of the carbon tax there is at least another that just won't be built.
Posted by Shadow Minister, Thursday, 24 May 2012 1:29:37 PM
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