"No aluminium is smelted using coal, all aluminium smelting uses electricity." Correct, I was not referring to carbon reduction.

The NSW taxpayer wont feel the opportunity cost of coal for export vs the price it conjures for electricity generators. Tomago is secure for a few years before the CT bites, and even then it depends on what the state gov't decides.

It's a pity that all you got out of the article I cited was that it was a LABOR policy. I don't expect the Libs to turn that around or to back alternatives with anything remotely approaching the subsidy on coal, given its mixed position on AGW.

Whatever, your argument (and subject of this thread) that the CT has already begun to be a major cause of a decline in manufacturing, even of energy intensive industries like coal-based aluminium smelting, awaits supporting evidence other than the utterance of a CEO deflecting blame from the market, inefficiency and his performance as he turns out the lights.(Kurri-Kurri).

LF,

What evidence are you waiting for? The carbon tax will add about $280 per ton to manufacture aluminium in the most efficient smelters in the world, which is 10% of the sales price of the product at its peak. This is not just an inconvenience.

For the rest of industry the rise will be much smaller, depending on the size and consumption of the industry, but it is never negligible. Some companies will bear it, others will fold.

Dear Yabby,

Just to jog your memory.

There was a major out cry in recent history regarding
something called the GST. And prices went up, and
travel went up, and it cost more for food supplies,
and small businesses were panicking - and spending
long hours trying to manage it and guess what?
Today we look at our invoices and see that little
extra amount at the bottom - and we silently accept it
and pay it.

I believe the GST was introduced by a fellow called John
Howard who didn't keep his promise made prior to the
election. And now the farmer has to pay, the family has to
pay, even architects and librarians have to pay.

After July 1st, maybe you could well be right. The sun will
never set - it will be too traumatised - having believed
the scare tactics of the Opposition and people like yourself.

We'll have to wait and see whether scare tactics and your spin
has a greater effect than the government's facts on this issue.

Ah Lexi, clearly accounting is not your strength. I remind you
that the GST is refundable and not paid by manufacturers and does
not add to the cost of producing exports, unlike the carbon tax.

Dear Yabby,

It appears your accounting does not apply to the
masses of people who every time they buy something,
pay for a service, eat out, et cetera - pay GST -
which is non-refundable unless they are self employed.

The point that was being made was - that the GST which initially
appeared to be a major disaster to the economy - turned
out to be a normal part of the economy. And the same will
probably result with the carbon tax.

Only some 500 big polluting industries will be paying it - and everbody else will get
compensation for the flow-down effect. So you don't have
to worry about your cows polluting the air. Whereas we
still have to pay the GST on your cow's products. And that
means from the youngest school child to the oldest pensioners -
they all pay GST - and nobody compensates these people. And
nobody's complaining - because people have become immune
to it - and simply accept it as the norm. The same will
undoubtedly happen to the carbon tax (polluter's tax),
and you can argue all you want. With time nobody will
listen to you. But keep on posting - I always yawn when
I'm interested.

*Only some 500 big polluting industries will be paying it*

Not so Lexi, they pass it on. Only it cannot be passed on to
overseas consumers, so farmers pay. Creating milk powder, cutting
up meat, refridgeration, all use lots of power. You won't pay,
farmer will. So will other manufacturers in Australia who are
trying to compete globally.

The GST is a completely differnt ballgame as its a tax on consumption,
not on production. It does not disadvantage exporters.
The GST also replaces a whole lot of other taxes, like the wholesale
Sales Tax, various taxes on bank accounts etc.

So my point again. The carbon tax discrimates against exporters and
those trying compete in the global economy. That includes farmers.
If they are going to tax farmers, then let them tax librarians too.

If you want to discourage Australian exporters simply keep knocking
more nails into their coffins. They will keep shutting down. Next
you will be complaining about jobs.