More concerns over Australian carbon trading scheme

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Australia - Another Tasmanian industry has expressed concern at the Federal Government’s proposed carbon trading scheme. Cement Australia, based at Railton, says as a high emissions polluter the company would get some transitional funding from the government.

The company’s sustainability manager, Stuart Ritchie, says the big unknown is the price of carbon as a trading mechanism. Mr Ritchie says the Federal Government’s green paper points to an initial allocation of 90 per cent of total carbon liability coming through an allocation of permits.

“The real concern that we have is that, that allocation will decay and it will decay at an unknown rate because it’s dependent upon overall growth in the economy and particularly in the overall growth in the trade exposed emissions intensive sectors.”

The group representing large industrial companies in Tasmania says many others are concerned about their viability under the trading scheme.

The Major Employers Group says the scheme has the potential to do major harm.

Zinc producer Nyrstar says carbon taxes could see it close its Hobart and Port Pirie operations with the loss of 3000 jobs.

The group’s chairman Terry Long says commodity producers are already doing it tough because of the global financial crisis.

“Tasmania is a commodity producer and is therefore exposed on one front already,” Mr Long said.

“The emissions trading scheme has the potential to leave industry exposed on two fronts and struggling for viability.”