News Article

Reserve Bank signed death warrant on jobs: AWU boss

10/02/2012 -

Australian Workers' Union boss Paul Howes says the Reserve Bank of Australia (RBA) has signed a "death warrant" for manufacturing by putting its cash rate on hold.

But the coalition insists it is the threat of the carbon tax, which starts on July 1, that is making industry nervous.

The RBA on Tuesday kept the cash rate steady, at 4.25 per cent, contrary to most forecasts of a 25-basis-point cut.

The decision has pushed up the Australian dollar, which already is putting pressure on exporters and has led to a number of car makers and other manufacturers shedding jobs.

Howes on Thursday told Melbourne radio MTR the main pressure facing the latest company to shed jobs - aluminium maker Alcoa, which operates a smelter in Geelong, Victoria - was the dollar, not the carbon price.

"This plant with a carbon price can be incredibly profitable if the dollar sits at 104, 99 (US cents, or lower)," Howes said.

"But when you're sitting at 110, and when there's no signs of it coming down, when the Reserve Bank is, basically, trying to sign a death warrant on Australian manufacturing industry, yes, these jobs are under threat."

Opposition Leader Tony Abbott agrees the high dollar is an issue.

"But the thing is the carbon tax is a further structural change that will operate to the detriment of these industries," he told the same network.

Australia should have a "natural advantage" in making aluminium and steel because of its affordable energy and abundance of coal and gas.

"But because of the policies of this government, unfortunately these industries are on the way out," Abbott said.

Source: AAP NewsWire

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Have your say...

Goldie | 10/02/2012 11:35:17 AM

Howes is a tosser warming up to follow other union hacks into politics. When was the last time you heard a union boss endorse a tax on industry, complain about job losses and then blame the Reserve Bank for the problem. What a wanker

dave d | 13/02/2012 12:24:11 PM

Well after the increase in Bank rates which will obviously drive the dollar up even further plus Carbon Tax - we have Two greedy Rats that don't give a Fat Rats clacker about peoples jobs - Julia and the Banks - still want to put your support behind Julia now Howes ???

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