By Karen Poh
AUSTRALIA’S top climate change adviser’s call for the rapid introduction of carbon emissions trading has stoked business fears that such a scheme would push up costs and make it difficult for companies to compete against foreign firms.
Star contacted oil giant Mobil last week, after company executives told the Herald Sun that its Altona refinery, which employs 350 people, could be forced to close because of competition from overseas facilities that did not have to pay to emit greenhouse gases.
But Mobil spokeswoman Rebecca Arnold played down the concerns, saying it had “no plans to close the refinery”.
Workers on site the Altona refinery were not worried, she said.
“It’s more a company point of view where we’re concerned about reduced competition within Australia for emissions-intensive industries such as refining.
“We’re just calling for the Government to recognise refining as an emissions-intensive trade-exposed industry and ensure that it remains a competitive industry within Australia,” Ms Arnold said.
She reaffirmed the company’s willingness to accept a carbon tax, which would enable Mobil to make effective financial projections on carbon costs and carry out the necessary long-term investments in the plant and machinery to reduce emissions.
Mobil was concerned about climate change, Ms Arnold said.
“We have a very good environmental record here at the refinery and certainly around the world and that’s certainly a high priority. We’re constantly looking at the environment and our impact on that,” she said. “One thing we do at the refinery is work with the community to develop an environmental improvement plan. And what that does is we ask the community and representatives of Hobsons Bay City Council and the Environment Protection Authority what kinds of things can we be doing to improve our environmental record and to improve our impact here,” she said.
Health Minister Nicola Roxon, whose seat of Gellibrand encompasses the Altona refinery, acknowledged the impact a cap and trade scheme could have on emission intensive industries like Mobil.
“The Government is acutely aware that there will be particular industries more affected than others by the introduction of an emissions trading scheme,” Ms Roxon said. “The Government has been consulting widely with the key stakeholders within these industries.
“One of the key aspects in developing the scheme has been, and will continue to be, considering the impact on emission-intensive industries,” she said.
Hobsons Bay acting mayor Angela Altair, who is the chair of the council’s sustainable environment adivsory group, as well as the Victorian Local Sustainability Network, said the council would be watching the issue with interest.
“The reports of closure are only speculation at this point. But obviously we’re concerned about any flow-on effect for local jobs and the local economy,” she said.
