Friday, May 25, 2012
Carbon Tax biting already.
Labor's carbon tax is starting to bite already with it cited as one of the reasons Norsk is closing it's Hunter valley smelter and 340 workers are losing their jobs. Aluminium smelting is a very power-hungry process and Australia has historically had very low energy costs - a situation now changed by the forcible addition of expensive and inefficient "green" energy to the grid . In a struggling economic climate this additional punitive tax will send many struggling businesses to the edge especially non-incorporated small businesses which will receive no help at all and they employ the majority of the Australian workforce. Australia's smelters are competing poorly with China where energy costs are much lower and labor costs are small.