By The Editor
The carbon tax’s damaging effect on job creation has again been evidenced by a large Melbourne-based chemical company’s decision to shelve a planned $1 billion expansion due to concerns about its viability.
Coogee Chemicals, which operates a large methanol factory in Melbourne’s west at Laverton North, was planning to build a new plant, possibly at a regional Victorian location, which would have created about 150 jobs.
However Coogee Chemicals’ chairman Gordon Martin said the company would not only make building a new plant unviable, but jeopardise the operations of the existing Laverton North plant, which is the country’s only methanol factory.
Laverton plant manager Dr Grant Lukey told the Herald Sun without any guarantee of industry assistance continuing beyond the initial five year period enshrined within the carbon tax legislation, which passed the Senate today, the risk of investing in a new plant was too great.
Climate Change Minister Greg Combet has attempted to reassure Coogee Chemicals by saying the company would have no net liability under the carbon tax and would receive free carbon permits for its existing efforts to reduce carbon emissions.
However the example of Coogee Chemicals illustrates the continuing uncertainty experienced by many businesses due to the looming carbon tax, and the job creation opportunities being missed as a result.
