“The net zero agenda has claimed another victim with the critical Whyalla Steelworks shedding jobs because of the $100 million Safeguard Carbon Tax imposed by the federal government,” said Saxon Davidson, Research Fellow at the Institute of Public Affairs.
It was announced this week that the Whyalla Steelworks workforce has been cut by over 500 jobs, with approximately 100 contractors also affected, due to the failure of the blast furnace to operate effectively. This accounts for approximately a third of the total jobs at the Steelworks. This is despite repeated bailouts from both the state and federal governments.
“The government has rendered Whyalla Steelworks an investment no-go-zone because of its policy intent to shut down emissions intensive industries such as the Steelworks.”
“To have a thriving manufacturing base in Australia we must have affordable power prices and a reliable supply of energy to invite investment. Both those things are put at risk by the policy of net zero.”
“This is a clear signal that Australian manufacturing cannot survive the renewable transition.”
The Safeguard Mechanism is the federal government’s signature net zero policy that mandates large projects and facilities must reduce their emissions or purchase carbon credits to continue to operate. Previous IPA research found that facilities will incur a safeguard carbon tax cost between $7.1 billion and $11.7 billion by 2029-30.
Using the same methodology, the IPA calculates that the Whyalla Steelworks, at full operation, faces a safeguard tax cost of up to $97.4 million to 2029-30.
“The Safeguard Mechanism is a danger to our sovereign capability, as almost nine-in-ten of all the facilities targeted are in critical industries we need to survive as a self-reliant nation, including mining and manufacturing,” Mr Davidson said.
“While a carbon tax of $97.4 million is significant, it is only one cost the facility incurs on top of ever-expanding red tape, emission reduction requirements, and net zero-induced rising power prices.”
While the Safeguard Mechanism is a direct burden on our sovereign capability, the underlying policy of net zero is the catalyst for Australia’s decline.
“Australia must be a country that takes advantage of our natural resources and services the needs of our country first. This means abandoning emission reduction targets set by global conferences.”
To download the IPA’s research on the Safeguard Mechanism click here.
