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July 11, 2008
Letter to the Editor - Emissions Trading Scheme
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Alcoa, like others, has been interested in media commentary on the proposed Australian Emissions Trading Scheme (ETS) since the release of the Garnaut report last Friday.
Professor Garnaut’s report outlines what a scheme might look like, and we are reviewing the report now, as we will Minister Wong’s Green Paper. The scope of an ETS is critical to the sustainability of our operations and as Victoria’s largest exporter we are an important part of the debate.
Alcoa supports the introduction of an ETS that delivers reductions in greenhouse gas emissions and does not compromise the international competitiveness of Australian industry. We believe in a sustainable solution to climate change - that means one that supports greenhouse solutions AND Australian jobs.
There is no reason why the scheme should not support us when it is finalised - the Government and industry view is that trade-exposed emissions-intensive industries like ours should not be exposed to increased costs before our competitors in other countries face similar.
The Government is aware that there is no point damaging Australian industry - that is counter-productive to the aim of the scheme.
We strongly disagree with any commentary which proposes the closure of our smelting operations and have been heartened by the support for our business from the Premier, our local Members of Parliament and individuals in the community who recognise the social and economic value we continue to add to the communities in which we operate.
In Victoria, Alcoa’s operations-
- Directly employ over 1800 people providing around $200 million in wages annually
- Provide around $90 million in contractor wages annually
- Pay $7.5 million in council, land and water rates annually
- Contribute $2 million each year in sponsorships and partnerships to help build stronger communities in Victoria.
We would also like to clarify that Alcoa does not receive a subsidy from the Victorian government for our electricity supply. Alcoa has had commercial energy supply agreements in place with the State Government since the 1980s and those are still in place today. We have never received a subsidy from the Victorian Government, nor are we seeking one now. Alcoa will negotiate our post 2014 (Point Henry) and 2016 (Portland) energy supply agreements with private generators.
Alcoa remains absolutely committed to the sustainability and growth of our Australian operations and their contribution to building stronger communities.
We are part of a vigorous debate on one of the most important issues facing us all today, climate change, and we will no doubt hear and read plenty more in weeks to come.
Tim McAuliffe
Manager, Environment and Sustainable Development
Alcoa of Australia
For further information about Alcoa and the Emissions Trading Scheme, please visit the Alcoa Australia news page.
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