Bluescope afraid of carbon laws

Bluescope Steel has expressed fear towards the introduction of new carbon emssion laws. In a statement before a Senate select Committee on Wednesday Bluescope Steel gave ‘evidence’ of how the new carbon pollution reduction scheme (CPRS) would drastically effect the productivity of the business.

Highlighting the relatively small size of the Australian steel industry Bluescope said that the framework of the CPRS “does not adequately shield these industries from the loss of trade competitiveness that will inevitably occur if Australia imposes a carbon cost ahead of other countries.”

Bluescope expressed its support of a carbon reduction plan but stressed that the current plan would not maintain the competitiveness of the Australian industry. The statement labelled the new carbon emission scheme as a “deadweight burden on the industry,” and stated that the scheme “needs – at a minimum - significant amendment”.

The new Carbon Pollution Reduction Scheme threatens the economic viability of Bluescope steel in the Illawarra. Photo: William Thomson

 

On thursday the Illawarra Mercury ran a story called ‘Carbon scheme jeopardises Port Kembla steelworks: Bluescope’. It focused on the economical impact that the scheme could have.

“If our business becomes unviable in the global marketplace then the whole Port Kembla steelworks is threatened,” he said.

Mr Cornish’s comments represent BlueScope’s bluntest assessment yet of the impact of the Government’s emissions trading scheme.

He said “tens of millions” of dollars would be wiped from the company’s books in the first year if the plan came into effect.

In the same article Australian Workers Union branch secretary Andy Gillespie said that Bluescope “should just wait and see what is going to happen instead of putting the fear of Christ into the workforce”.

The next day another article was published called ‘Government blasts Bluescope over carbon claims’.

BlueScope Steel has been accused of overestimating the impact of the Carbon Pollution Reduction Scheme on its business.

Unions and a federal MP expressed disappointment yesterday at the company’s decision to publicly declare that the scheme (CPRS) in its existing form would put the Port Kembla steelworks at risk.

I think the government is growing nervous about the implications of rolling out the new scheme. Throsby MP Jennie George labelled the presentation as mischievous and said, “it didn’t portray the full picture about our proposed (CPRS)”. Mrs George sought to clarify that the company was involved in ongoing discussions with the government. And like Andy Gillespie the day before, played down the claims of the company. 

Earlier in the week (Monday) the Illawarra Mercury also published an article called “Carbon scheme ‘threatens’ Illawarra jobs”. Federal member Wollongong MP Sharon Bird said that delaying the scheme was not practical.

She believes it is the global financial crisis, and not the emissions trading scheme, that is the biggest threat to the region’s jobs. She said the Government was well aware of the challenges facing industrial areas, but argued new green jobs can be created.

Similar things are happening across the world as the ‘green movement’ makes a push for environmentally friendly industries. In America New York’s plans to reduce greenhouse emissions may be amended so that local power companies will not suffer. The company Indeck filed suit against the state late January citing that “We believe in doing our part,” but “This has hit out bottom line.” Check out the New York Times for that article published last wednesday.

There appears to be a massive diffusion of responsibility across the globe. Not many people are willing to take the first step. And while the Australian government is striving to demonstrate international leadership, companies like Bluescope and Indeck have sounded out in opposition with fears of being economically disadvantaged. But unless fears over the economic recession coerces the general public into accepting slower progress, Nations, Governments and Businesses will have to act. Support for emissions schemes are growing…