Tuesday, March 13, 2012

Roofing Carbon Tax?

What effect will the Carbon Tax have on the Building Industry?

The amount of CO2 tax revenue on a few of the building industry key companies must have an effect later on prices. An already subduded construction industry needs this like a hole in the head!

Here is a short list of some building and associated companies that the construction industry rely on:


CompanyTotal CO2$23.00 per tonne
Tonnes2012 to 2013
Adelaide Brighton Ltd3,111,777$71,570,871.00
Alcoa Australian Holdings Pty Ltd18,038,269$414,880,187.00
BlueScope Steel Limited212,937,246$297,556,658.00
Boral Limited32,996,193$68,912,439.00
Brickworks Ltd415,134$9,548,082.00
Building Supplies Group Holding Pty Ltd296,994$6,830,862.00
Cement Australia Holdings Pty Ltd2,932,985$67,458,655.00
CSR Limited860,310$19,787,130.00
Fletcher Building (Australia) Pty Ltd425,743$9,792,089.00
Gunns Limited58,856$1,353,688.00
H.P.S Transport Pty Ltd14,567,101$335,043,323.00
Hanson Australia (Holdings) Proprietary Limited313,446$7,209,258.00
Holcim Participations (Australia) Pty Ltd.294,403$6,771,269.00
Hyne & Son Pty. Limited73,256$1,684,888.00
James Hardie Austgroup Pty Ltd91,513$2,104,799.00
Koppers Australia Pty Ltd195,256$4,490,888.00
Linfox Pty Ltd273,882$6,299,286.00
OneSteel Limited23,825,661$87,990,203.00
Orica Limited2,127,374$48,929,602.00
Sims Metal Management Limited77,174$1,775,002.00
Telstra Corporation Limited1,414,262$32,528,026.00
Wesfarmers Limited5,044,230$116,017,290.00
Total$1,618,534,495.00


So  overall on just some of the industries in the top 500 dirty polluters - the construction industry could be up for some $1.6 billion payable as CO2 Tax. The above list includes transport, cement, insulation, steel, timber, telecommunications and is only a small number of companies that will be liable for this new CO2 Tax. Even hospitals, Universities, banks, airlines and councils are on the list.

This list - called the 2010-11 Greenhouse and energy information by registered corporation is available online. The total income for the government in the first year is well over $10 Billion. A PDF is available also HERE.

So the money collected is to aid Australia in reducing CO2 emmissions from these companies that are emitting them and so the result will be lower emmisions and lower temperatures. How much can $10 Billion reduce the temperature by?

What if the science is wrong and many of these industrys close as a result? Isn't it only done on models - not actual proof of data? Where are the models and the results?

Yet we can import coil steel from Asia or India without the CO2 Tax being charged on it. Who is going to lose in all of this?

UPDATE:

  1. BlueScope Steel has given Port Kembla until end of 2013 to turn a profit! It employs currently some 5,000 staff - and is the threat closure - BlueScope could cash in the free Carbon Credits the government gave them for the remaining year and pick up $300 million plus - for closing down! Reward the manufacturers by paying them to close?
  2. Fletchers to announce job reductions in insulation, Laminex (SW) and Stramit shortly. Australia is not doing well currently for Fletchers - and they will restructure accordingly. Who's next.
Corrections thanks to SW


2 comments:

  1. Monier is a CSR brand roofer...
    The insulation industry is still yet to recover from the government energy scheme which fell in a heap... these jobs are likely to go offshore
    thailand is a likely candidate (free trade agreement) or the US (no carbon tax)
    Thanks JuLiar

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  2. Corrected the text - thanks SW. Had Monier in my mind!!

    Yes! The Insulation companies may be the first to go - but many of the rollformers are slowly laying off staff. It's going to get worse before it gets better in the construction industry!

    Most of the accomodation units for the mines are coming in from China and just assembled on site!

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