Labor Hypocrisy Over Steel Package

Federal Member for Grey Rowan Ramsey spoke in Parliament on Tuesday opposing the Government’s proposed carbon tax and highlighting the Labor Government’s determination to send Australian industry offshore.

Earlier in the day on ABC radio, Australian Workers Union head Paul Howes accused Mr Ramsey of “driving yet another nail into the coffin of the steel industry”

“Mr Howes support for the carbon tax is a complete back-flip and in stark contrast to his earlier claim that, “if one job is gone, our support [for the carbon tax] is gone” so his credibility on this issue is shot,” Mr Ramsey said.

Mr Ramsey staunchly defended his decision not to support the assistance package.

“This package goes nowhere near far enough to save jobs in the steel industry long-term,” he said.

“Simply, this tax puts costs on our steel producers that none of their competitors face.

“After four years when the carbon price has gone up significantly the assistance package ends. What then?

“The Government claims its compensation package for the steel sector is essential, however the $300m on offer will be spread across the entire nation and Whyalla will be lucky to see 20% of that amount which will in any case expire by 2016.

“By that time the carbon tax will have moved from $23 tonne to $29. In the following four years the tax will rise to $37 tonne and the assistance package will be a distant memory.

“If OneSteel is happy with the deal struck with the Government, the question of their long-term plans for steel-making in Whyalla arises.

“After the four-year period unless there are radical shifts in our economic parameters, steel making will become a total liability.

Mr Ramsey told Parliament the only aim of a carbon tax should be to change behaviour and yet around 80% of the emissions in steel making are unavoidable.

“High taxes on steel cannot change CO2 efficiency, in fact if we want to reduce Australia’s emissions from steel the only way of making a significant difference is to close down the industry and send it offshore,” he said.

“That will not cut global emissions, but it will remove them from Australia’s balance sheet, which is of no benefit to the environment.

“149 members of the House of Representatives went to last election on the platform of no carbon tax, just one, the Greens member was in favour. Julia Gillard promised not to introduce a tax. She has no mandate to; the tax was the price of the deal with the Greens, part of the deal to deliver government to the Labor Party.

“Mr Howes said I’m a threat to the steel industry, the accusation is just preposterous, it is his Government’s tax which not only has the steel industry lined up, but also attacks Nyrstar and Alinta energy and in those cases there is no compensation offered above the standard rebates.

“I’m not likely to support anything which so savagely attacks our major industries.

 “The carbon tax will cost Nyrstar in Port Pirie in excess of $10 million in the first year, rising to $16 million per year by 2020. Similarly to steel production, there are virtually no means by which Nyrstar can alter the process to emit less CO2.

“In the wider sense, the economic backbone of my electorate—agriculture, fishing, aquaculture, mining, and the overseas-competing tourism industry will all wear rising costs, receive no compensation and have no ability to pass on their costs.

“All sides of politics agree that we need to reduce our CO2 output; however, there is a better way than installing a tax that Australians were promised they would not have and, despite the Government’s best efforts, clearly do not want.”

Media Contact: Leonie Lloyd-Smith (08) 8633 1744 Canberra (02) 62774967

October 12, 2011