Alcoa Review Adds to Carbon Tax Warning

08/02/12

Alcoa’s announcement today of a review of the future of its Point Henry Smelter in Geelong is further confirmation that this is the worst possible time to introduce a Carbon Tax.

The review will be a major blow to the job security of workers in Geelong with 600 direct jobs at risk. Closure would have further flow on impacts to the community and supporting jobs.

The announcement follows job losses at aluminium operations in NSW with the industry struggling under the cost pressures of the high Australian dollar and low metal prices

Hydro Aluminium announced in January that it will cut its workforce by 150 at Kurri Kurri and at the same time Tomago Aluminium announced it will shed 100 jobs at Tomago.

BHP and RIO have also indicated that they are reviewing their Australian alumina and aluminium assets respectively.

It is absolutely clear that this is the worst possible time to hit businesses with a Carbon Tax. The aluminium industry one of the most exposed with one of its most significant input costs being electricity.

The Aluminium Council has calculated that the Carbon Tax will impose a carbon cost on Australian aluminium producers of at least $60 per tonne of aluminium.

It is a cost which their overseas competitors won’t pay.

The Carbon Tax is a direct assault on the job security of blue collar workers from a party that has become the enemy of the worker and the puppet of the Greens.

What we are increasingly seeing is Australian businesses shutting down and sending jobs offshore to China, India or Indonesia, to avoid the high costs of local production.

All that does is send jobs and greenhouse emissions offshore, it doesn’t improve the environment.