FED:Steel makers oppose carbon tax: Abbott=2

AAP General News (Australia)
04-27-2011
FED:Steel makers oppose carbon tax: Abbott=2

Mr Abbott spent about an hour and a half touring the steelworks with the plant's manufacturing
manager and community relations manager.

OneSteel spokesman Steve Ashe said in a statement to AAP the carbon tax is "a big issue
for our Whyalla operation as the largest portion of our emissions come from Whyalla steelmaking".

"We are concerned that taxing our production when our import competition does not also
face a similar tax will reduce our competitive position and increase the challenges and
risks for our Whyalla business," Mr Ashe said.

"The carbon tax is meant to be a price signal to reduce emissions, however the nature
of steelmaking is that the chemistry dictates that emissions will occur, and there is
no new technology available now or in the foreseeable future that will allow us to materially
reduce these emissions."

Mr Ashe said the company was not against taking action on climate change, but that
as demand for steel is not changed by the tax "there will be no reduction in global emissions,
in fact emissions are likely to increase because of leakage offshore".

"So a carbon tax on the steel industry that deteriorates our competitive position is
likely to result in a worse environmental outcome, but also have a significant negative
impact on Australian jobs," Mr Ashe said.

AAP pjo/sb/apm

KEYWORD: CLIMATE ABBOTT UPDATE 2 CANBERRA (REOPENS)

� 2011 AAP Information Services Pty Limited (AAP) or its Licensors.