CARBON TAX CLOUD OVER MANUFACTURING
05-October-2011
Nissan Australia is the latest in a long line of companies that has spoken out about the devastating impact the carbon tax will have on Australian manufacturing.
Today, Nissan officially opened its Accessories Business Unit manufacturing facility at Dandenong, Victoria. Nissan is committed to using high quality Australian steel and aluminium in its manufacture of accessories and is committed to local manufacturing jobs.
At the official opening of the Dandenong production line, Nissan Australia CEO Dan Thompson has forecast a bleak future under a carbon tax regime:
“A so-called carbon tax, looming as a hurdle to Australian manufacturing, won’t help. Our business plan figures are finely balanced and based on a predictable and measured business environment.”
“What might change, and what we do not welcome, is the prospect of rapidly inflating resources costs which will drive up costs and have the effect of limiting or stalling growth at this facility.”
“After proving its competitive mettle on the global manufacturing stage, after bringing business back home from Asian factories; for a business on the move like NCAP, we want to see those breakthroughs produce a sustainable, long term benefit for our customers. We cross our fingers that any additional and unnecessary tax burden won’t lead us to change our plans. After all our employees’ hard work, we are not in the mood to see that happen.”
The Nissan Dandenong plant will use 9,000 tonnes of aluminium per annum which represents 40% of its cost base with electricity contributing a further 20%. Therefore the carbon tax will substantially increase 60% of costs directly.
Also today, the Australian Workers Union and the Australian Manufacturing Workers Union unveiled a big red mobile billboard at Parliament House promoting manufacturing jobs. The easiest and most significant action to support manufacturing in Australia is to axe the carbon tax, and that’s what the unions should be lobbying the Government to do.