BlueScope Steel has welcomed the decision to delay implementation of the Carbon Pollution Reduction Scheme, but indicated it will use the extra 12 months to push for more changes.
Mr Rudd yesterday said the Government was delaying its introduction until mid-2011 because of the global financial crisis.
In a statement to the Mercury, BlueScope - which employs 4600 workers plus contractors at Port Kembla - said the alterations were "constructive steps in the right direction".
Carbon scheme jeopardises Port Kembla steelworks: BlueScope BlueScope boss' dire Port Kembla warning Steel union reveals blueprint to save 500,000 jobsThe Federal Government's backdown comes after intense pressure from industry groups and companies like BlueScope, which headlined its campaign against the previous plan by claiming the introduction of a poorly considered scheme could put 12,000 Illawarra jobs, supported by the steel industry, at risk.
NSW Treasury modelling on the scheme, obtained by the Mercury in March, seemed to back this and showed the Illawarra economy would be one of the "worst affected".
The Government has now delayed the scheme's start until after the next election, due in late 2010.
"We welcome the measures to delay the commencement date, cap the carbon price in the first year and improve assistance arrangements for emissions intensive trade exposed industries," a BlueScope spokesman said.
"There are still significant issues to be resolved for the industry, including the definition of which activities will be eligible for assistance, and potential costs pass through from suppliers.
"We will continue to work constructively with the Government in order to ensure the design of the CPRS meets the Government's economic and environmental objectives, avoids carbon leakage and maintains jobs."
As yet, the company has given no indication how changes to the policy affect plans for a $1 billion co-generation plant at Port Kembla.
The plant, which would reduce greenhouse gas emissions each year by the equivalent of taking 185,000 cars off the road, is still being considered, but last week BlueScope chairman Graham Kraehe said it could not go ahead under the then existing scheme.
Under the revised scheme announced yesterday, emissions-intensive trade-exposed companies would receive greater government support - 95 per cent free permits as opposed to the previous 90 per cent.
Initially, BlueScope had argued the free permits would only cover 64 per cent of its emissions.
The Mercury understands preliminary estimates show BlueScope believes that will now rise to 70 per cent.
"The iron and steel industry has consistently stated its concern about the cumulative cost impact of the CPRS, and the impact of the scheme on its trade competitiveness in the absence of a global carbon price," the BlueScope spokesman said.
Throsby MP Jennie George said the delayed scheme would be welcomed by workers, but acknowledged there were still negotiations to take place.
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