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.
Carbon scheme jeopardises Port Kembla steelworks: BluescopePreviously the steel manufacturer had talked in general terms about the scheme's possible impact but chief executive Noel Cornish pulled no punches before a Senate select committee in Wollongong, saying if the business became unviable: "Port Kembla steelworks is threatened".
Throsby MP Jennie George said BlueScope was "conflating the impact of the economic downturn and our proposed Carbon Pollution Reduction Scheme".
"I was most concerned to hear about the presentation ... because it didn't portray the full picture about our proposed Carbon Pollution Reduction Scheme and the high level negotiations that are occurring ... to address some of the legitimate concerns of BlueScope Steel."
Ms George said she thought the presentation had been mischievous. She added the Government was aware of the impact of the financial crisis on steel demand but said the scheme was a separate issue.
"Before the downturn, in our discussions (with BlueScope) there was not the doomsday suggestions about the scheme there are now," Ms George said.
"I want to place on the record the company has met with me and (Cunningham MP) Sharon Bird on numerous occasions - the Government is aware of the issues and is working on addressing them."
BlueScope said its presentation had been straight down the line.
"The company is in no way being mischievous," a spokesman said.
"We have presented at yesterday's Senate hearing a genuine analysis of what we expect the impact of the CPRS, in its current proposed form, would be on our business.
"The point was made yesterday that CPRS costs of this magnitude would be difficult to bear in good economic times. In the current downturn, they would be disastrous."
The spokesman said BlueScope had been "appreciative ... and encouraged by the support we have received from our local MPs".
"They, like BlueScope, are keen to secure our region's economic prosperity, however the CPRS as it is currently designed is flawed and will require significant amendment," he said.
Parliamentary Secretary for Climate Change Greg Combet entered the fray yesterday, promising the Government was in "ongoing" talks with BlueScope.
"Port Kembla integrated steelmaking will receive permits at the 90 per cent rate of assistance, which is the maximum level of government assistance under the Carbon Pollution Reduction Scheme," he said.
But BlueScope argues the free permits would actually only cover 64 per cent of its emissions.
Ms George said she understood this concern and an independent committee was looking into the claim.
National secretary of the Australian Workers' Union Paul Howes said the union was working to ensure a result that also protected jobs.
As negotiations were still continuing, Mr Howes believes "it is still too early to say what the result of the CPRS will be on Port Kembla direct".
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