Carbon tax ‘cost 90 jobs at Boral plant’

By NOEL MURPHY

The carbon tax led to the loss of 90 jobs at Boral’s Waurn Ponds plant, MP Sarah Henderson has told federal parliament.
“While there were various pressures on Boral, the carbon tax ensured that Boral was less competitive on the international market,” Ms Henderson said.
“The cost of making clinker was driven higher by some 18 per cent because of the carbon tax and we now we see Blue Circle Southern Cement importing clinker and only 20 or so employees remaining at this production facility.”
Boral, now known as Blue Circle Southern Cement, announced the 90 job cuts in December 2012 under the previous Labor government.
The company began importing cement clinker after a business review in light of the strong Aussie dollar, cheap shipping costs and high energy costs.
Blue Circle spokesperson Kylie Fitzgerald told the Independent the carbon tax was one of several contributing factors to changes at the Waurn Ponds plant.
Ms Fitzgerald said the financial impact of repealing the carbon tax for manufacturers like Blue Circle remained an unknown.
“It’s still a little unclear,” she said.
“It’s not clear what the alternative will be and what the costs associated with that might be.”
Ms Henderson took aim at Labor Member for Corio Richard Marles, who she claimed had failed to stand up for his manufacturing-dependent electorate.
“He has not stood up for his electorate, he has not stood up for manufacturing,” she told parliament.
“He has not stood up for the many important employees and employers in his electorate and spoken out against this tax that he knows is driving up the cost of electricity and gas and really hurting manufacturers.”
Geelong companies such as the IXL Group have expressed strong support for the repeal of the carbon tax. In a recent submission to the Renewable Energy Target (RET) review, IXL Group also warned of jobs in danger at its Geelong and Adelaide plants if the Federal Government abandoned or significantly changes the RET.
“Making the RET inoperative would jeopardise the 40 jobs at IXL Solar in northern Adelaide and make additional investment at this plant unlikely,” director Robert Backwell said.
“It would also threaten additional jobs at the IXL plant in Geelong – which makes components for IXL Solar – and make it even more challenging for IXL to successfully complete its transition away from automotive as that industry winds down.”
Mr Marles did not respond to requests for comment on the carbon tax, instead saying the Abbott Government should dump its “toxic budget” if it was serious about improving the cost of living for people in Geelong.
“The Abbott Government can also start by explaining why the only plan for jobs they have is how to get rid of them,” he said.
“Alcoa is closing its doors in only a few short weeks and we still have got not one single dollar or plan for how Geelong will cope with this flood of lost jobs.”