Timing, cost ‘critical’

JOHN VAN KLAVEREN
Mismanaging the pricing and timing of a carbon tax would have dire consequences for Geelong, an industry climate change expert has warned.
The warning followed polls showing a plunge in Federal Government support after Prime Minister Julia Gillard’s carbon tax announcement.
The Independent revealed last week the carbon tax would cost Alcoa $135 million at $20 a tonne.
Alcoa head of climate strategy Tim McAuliffe said a carbon tax had to be introduced at a level industry could cope with.
“Carbon pricing must ensure costs and the rate of change is tolerable. It must allow us to adapt to change,” he said.
“As an indicator, industries are paying zero to 85 cents per tonne of carbon in China right now. It’s all about international competitiveness.
“If we can’t do in a sustainable way, all we will see is (industries) close. They will be picked up elsewhere and jobs exported off-shore where there is a worse emissions performance overall.”
Mr McAuliffe said industry would also face rising overheads as power companies passed on their increased carbon pricing costs.
Liberal Senator for Victoria Michael Ronaldson said a carbon tax would be diabolical for communities across the Geelong region.
Families would face increased cost of living pressures including “dramatic” rises in electricity and petrol prices.
“It will be equally diabolical for industry if Julia Gillard gets this tax through parliament. The people of the Geelong region should brace themselves for significant job losses,” Senator Ronaldson said.
But federal Member for Corio Richard Marles said Australia risked being left behind if it did not put a price on carbon.
“So far 32 countries and 10 US states have put a price on it,” he said.
“We need to secure industrial jobs in the long-term, so we need to have this debate now.
“I’m confident we can change the way we make things in Australia using the innovative industries we have, but that change has to start now.
“If we sit on our hands now jobs in Geelong will be at risk in the future.”
Mr Marles slammed the opposition’s response to the carbon tax plan.
“Now is not the time for scare campaigns but constructive thought on how take the economy into the future.”
Mr Marles said he was in regular talks with carbon-tax-exposed Geelong employers Shell, Alcoa, Ford and Blue Circle Southern Cement.