After hitting business with the Fair Work Act, the Carbon Tax and RET they have the temerity to tell them to lift their game
Speaking to The Australian, Mr Combet said business plans that were adapted with an Australian dollar averaging between US60c and US80c would have to face the reality that the dollar at or above parity with the US dollar was now the norm
Does he really think that businesses haven’t adjusted their thinking to account for the high dollar – its been that way for quite a while now?
As I understand it, aluminium smelting is heavily dependant on electricity as evidenced by this submission to the Senate Select Committee on Electrticity Prices;
Electricity use represents approximately 30-40 per cent of the production costs of aluminium and, in highly competitive global markets, the cost of electricity is a critical factor in determining international competitiveness.
The long-term viability of smelters in Australia is under question. Continued operation of the industry will only be assured if significant production cost reductions can be achieved.
The operators of Australia’s five continuing aluminium smelters will be forced to continue actions including reducing employment and foregoing investment in order to manage the loss of competitiveness that results from increasing electricity costs.
With a stated policy of increasing electricity prices to hurt the country and force us to use less, the ALP can hardly lecture business on how to adjust to problems, most of which are caused by the ALP.
Mr Combet would not be drawn on the new body to vet Australian content in major projects, through Australian Industry Participation Plans, but The Australian has confirmed resource and infrastructure giants will be told to spend more heavily with local manufacturing companies, such as steel suppliers, as the government seeks to head off further lay-offs in the manufacturing sector.
ALP managed increases in electricity prices also effects Australian steel suppliers so how are they going to be able to compete with steel from countries not saddled with an ALP government?
They can’t, thus to help business Combet suggests they pay more for their steel.