By John Van Klaveren
AN ANNUAL carbon tax bill of $90,000 will force a long-standing Geelong manufacturer to review the viability of its power-intensive operations, the firm’s general manager has revealed.
Backwell IXL’s David Sykes said the business, with a workforce of 150, was ineligible for rebates or concessions under carbon tax regulations.
“We’re impacted directly by the carbon tax but we have no way of recovering the costs because we’re on fixed-price contracts,” Mr Sykes said.
“We’ll look at the viability of our power-intensive areas. We always look at ways to reduce costs but this burden is just another need to focus on reducing usage.
“Many businesses might not understand the full impact until down the track.”
Businesses operating in Geelong and identified as liable for carbon tax include Alcoa’s rolling mill and smelter, Incitec Pivot, Orica, Shell and Blue Circle Southern Cement owner Boral.
City of Greater Geelong economic development manager Terry Demeo said the carbon tax situation was in a “state of flux”.
“There is a raft of complexities around this and we might not know until the end of the next financial year.”
The Independent reported last year that a Geelong galvanising firm said it would lose to the carbon tax.
Geelong Galvanising general manager David Chaston said his company would lose business to product imported from countries without a carbon tax.
Alcoa’s Tim McAuliffe said the company was “hopeful” its Pt Henry rolling mill would be included in the same category as its smelter.”
“There is some negotiating to be done there but we anticipate the rolling mill will be eligible for the permit allocation, the same as the smelter.
Emissions intensive trade exposed industries are eligible for carbon permits of 94.5 per cent.
Corangamite MP Darren Cheeseman said Federal Government provided an $800 million clean energy technology investment program.
“The program will co-invest with businesses such as Backwell IXL to help them move over to energy-efficient, low-pollution processes.
“This will help businesses improve production to offset the modest carbon price costs.”
Mr Cheeseman said he would find out whether Backwell IXL could access the fund.
Carbon cop ‘targets coast, city’
Surf Coast Shire has been added to Federal Government’s carbon tax hit list with City of Greater Geelong, the Clean Energy regulator has revealed.
Clean Energy Regulator Chloe Munro has written to both councils warning them they might be among 70 liable for the tax “at best guess”.
Victorian Liberal senator Michael Ronaldson said the “carbon cop” had both municipalities “in its sights”.
Residents would bear the cost through rates hikes to cover the cost, he warned.
But Labor Member for Corangamite Darren Cheeseman said Surf Coast would escape a carbon tax liability because its tip “would need to be much larger”.
