Austeng’s John Cook and David Hapgood work on one of the turbines at the company’s Geelong factory. Picture: Tommy Ritchie 67483
ERIN PEARSON
GEELONG’S largest emitters of carbon dioxide are waiting on the fine print before deciding where they stand on the Gillard Government’s new carbon dioxide tax.
Geelong Mayor John Mitchell feared the tax could be a “significant cost” to councils, which use large quantities of electricity for purposes such as street lighting.
“Local government itself is a large consumer of energy,” he said.
“We’ll also be seeking clarification on the specific ramifications for landfill sites and the waste industry generally.”
Barwon Water managing director Michael Malouf, who described the authority as a “major user” of electricity, was also yet to determine the cost impact.
Barwon Water would be unable to pass on any cost increases until it had completed its existing pricing plan in 2013 and had secured Essential Services Commission approval for new charges, he said.
Alcoa climate strategy general manager Tim McAuliffe said the company was also working through the carbon pricing details.
Alcoa needed “detailed regulation provisions” to determine the tax impact on its business, he said.
“However, from what we can see so far emissions-intensive, trade-exposed provisions have been built in and this is essential to preserve the international competitiveness of our world-class export industries,” Mr McAuliffe said.
“Without these adequate safeguards Australia would experience both carbon and jobs leakage to overseas competitors.”
Corio MP Richard Marles described Sunday’s carbon tax announcement and compensation package as a “watershed moment” for Geelong.
“It means large carbon emitters like Boral Cement and Alcoa will get 94 per cent of permits they’re required to have under this scheme provided for free,” he said.
But Liberal Senator Michael Ronaldson warned that the Gillard Government had forgotten Geelong’s small businesses and families.
“Current Labor MPs Richard Marles and Darren Cheeseman, along with Julia Gillard, have ignored their plight with no compensation for local small businesses,” he said.
“Geelong’s small businesses have been left to fend for themselves. Shop owners will pay higher electricity and gas prices and more to transport their goods to Geelong, Colac and surrounding towns.”
Boral Cement, which operates a Blue Circle plant employing around 100 staff at Waurn Ponds, had not returned the Independent’s call for comment when the paper went to press.
