Australian Steel Workers Voice Carbon Tax Fears

by Mary Swire, Tax-News.com, Hong Kong

02 May 2011

The Australian Workers' Union (AWU) threw out a clear message to the Australian government this week, saying that it would not support a carbon tax if it cost even one job in the steel industry.

In the meeting called by the AWU leadership to discuss carbon pricing, Paul Howes, National Secretary, said:

“Try making a sustainable economy without steel – that’s what we’re telling politicians as the debate over carbon pricing continues."

“We need steel to help create the new carbon-neutral economy. You can’t create wind energy without steel. Our members are rightly proud of their jobs. They want to be part of the solution – not seen as part of the problem."

“A carbon price will happen in Australia and across the globe – we’ve got to be realistic and recognize that is happening. But our members’ voices need to be heard loud and clear in Canberra during this debate.
That’s why we’re talking directly to our members about carbon pricing and how we face the challenges ahead of us."

“Canberra knows that the transition to a low-carbon future must not threaten jobs. We have faced challenges in the steel industry before. The Union has fought hard to protect steel jobs in the past, and won.”

When asked for his views on the AWU’s threat, Wayne Swan, Treasurer, said: “I think they are concerned about the employment of members, as any union would be concerned, but what I would say to them is, what I'd say to unions and employers and the public in general, that we've got to put in place a price on carbon to get the investment which will drive renewable energy in this country, and which will give all of our industries the chance to compete in the future. And the steel industry is part of all of that”.

He said that the government had made it very clear that it was genuine in its discussions with trade-exposed sectors, and that what it believed was essential for the country was jobs, more jobs, and better quality jobs.

“What we have managed to do in the face of a global recession and a global financial crisis is produce an outcome in terms of jobs that is the envy of the world. And we will ensure as we go through this whole debate and policy formulation process for a price on carbon that jobs remain to the fore. That's what drives us. That's what drives us in terms of pricing carbon, to make sure that we can get the transition in our economy to a lower pollution future and that that keeps our relative competitiveness in a completely different and changing world.”

“I believe the union leadership understands that we do have to price carbon, that yes, we'll have a vigorous debate about it with not just unions but also the business community and so on, and we'll get the settings right”, he said.

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