Plans to build a $1 billion co-generation plant at Port Kembla steelworks could not go ahead under the Federal Government's present Carbon Pollution Reduction Scheme, BlueScope Steel chairman Graham Kraehe warned yesterday.He said if the Government remained "stubbornly committed" to the scheme's 2010 deadline despite serious flaws, it would drain cash from balance sheets and jeopardise investment in abatement projects such as the co-generation plant designed to save 800,000 tonnes of greenhouse gases annually.In the latest of a series of public attacks on government policy by the steelmaker, Mr Kraehe told a meeting of business leaders in Brisbane: "If ever there was a time to stop, take stock in a calm, analytical and bipartisan manner, it is now."
Read Mr Kraehe's speech in full Steel union reveals blueprint to save 500,000 jobs Union warns of worst crisis ever in steel''Unfortunately, much of the debate and legislative process to date has been characterised by politicking, stonewalling and inflexibility.''Earlier this month, BlueScope chief executive Noel Cornish told a Senate select committee in Wollongong that the viability of the steelworks and the 12,000 jobs it supported were at serious risk from the scheme.Australian Workers' Union national secretary Paul Howes added his voice during a visit to Wollongong two weeks later, telling Port Kembla steelworkers that up to 500,000 Australian jobs could be lost if the Federal Government failed to support the nation's steel industry as it struggled to stay viable during the global economic meltdown.Mr Kraehe said at a time when the Government's top priority was to inject fiscal stimulus into the economy to boost demand and retain jobs, it was pushing ahead with a carbon scheme that would tax Australia's largest exporters and employers, making them uncompetitive and putting jobs at needless risk.''In other words, a $2.5 billion de-stimulus package that will have serious impacts on Australia's competitiveness and on regional economics,'' he said.A first draft of the scheme's regulations is scheduled for release in June and the proposal could go before the Senate as early as August or September before a possible start-up date of July 1, 2010.''The Government has stated it does not want to damage the competitiveness of emission-intensive, trade-exposed companies, but it's actual approach is quite the opposite,'' Mr Kraehe said.''The Government has not modelled the impact of going it alone in 2010 ahead of the rest of the world.''Nor has it attempted to model the impact on the Australian economy of im Leg 2posing a $2.5 billion tax on the nation's largest exporters and employers while in the midst of the fastest downturn of industrial growth in the world's history.''For the Government to achieve its own stated objectives, the scheme needs significant amendment,'' he said.Australian Bureau of Statistics figures for 2005-06 show the entire Australian steel industry chain from the hot end in iron and steelmaking through to such areas as fabrication, employed 91,000 Australians and produced almost $29 billion in turnover.BlueScope Steel's closing share price yesterday was $2.49.
