Australian Solar Timbers blames carbon tax for job cutsFriday 26 Apr 2013 The managing director of an Australian hardwood flooring manufacturer said the country's carbon tax introduced in July 2012 has contributed to the company's decision to reduce the workforce by a further 30%, after downsizing 11 months ago.Douglas Head said Australian Solar Timbers (AST) in West Kempsey, New South Wales, was shedding 15 jobs - around 30% of the remaining workforce - because of deteriorating sales in 2013 and an increase in its electricity bill of AU$10,000 per month, The Macleay Argus reported. When the company downsized 11 months ago, 20 employees lost their jobs and the log intake was reduced by 75%. Head said that decision came after the company failed to gain a change in the law that would have allowed it to reduce its electricity costs by using wood waste to generate its own electricity. Head said the significant effects of the carbon tax on electricity prices had been an unnecessary handicap, accusing the government of squashing AST's attempts to move into energy as a result of its deal with the Greens. He described the situation as "disheartening" and accused the government of "political hypocrisy." The higher energy costs had combined with the high Australian dollar and flat demand from the building industry due to February rains to result in the latest round of lay-offs, Head added, a decision he described as difficult but unavoidable. Source: The Macleay Argus |
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