Australia’s Carbon Tax kills 1160 Jobs as Ford Stops Making Cars in Australia

Posted by PITHOCRATES - June 1st, 2013

Week in Review

General Motors and Chrysler required those government bailouts because of the costs of their pensions and health insurance.  Especially for retirees.  Who were living long into retirement consuming a lot of their health care dollars.  It was so bad that the cost of GM’s retirees was greater than the cost of their active workforce.  Which was a big problem.  For they just couldn’t sell cars at high enough prices to cover these crushing costs.

While labor costs are the automotive manufacturers biggest cost they’re not their only big cost.  Another big cost is energy.  For those assembly plants consume a lot of energy.  Especially electric power.  Which is why a carbon tax would be a horrible thing.  As it will only make a big cost bigger.  Perhaps even chasing more manufacturing jobs out of the country.  Like it is doing in Australia (see Ford workers ‘won’t be left behind’ posted 6/2/2013 on Sky News Australia).

Ms Gillard met workers from the Geelong factory on Saturday afternoon and announced an extra 15-million-dollars to help them find new jobs when operations close down.

Earlier on Saturday, Opposition Leader Tony Abbott challenged Ms Gillard to apologise to the workers, singling out the carbon tax as a contributing factor.

Last month, the company announced it would stop making cars in Australia, costing 510 jobs at Geelong and 650 at Broadmeadows.

The war on carbon gave Australia a carbon tax.  To punish those big carbon emitters.  In particular their coal-fired power plants.  Giving the government a clever way to transfer more money from the private sector to the bloated public sector.  For a noble reason to boot.  To combat global warming.  As Australia suffers through one of the coldest winters on record.  So to combat this global warming they added a punitive tax on electric power producers.  Which greatly increased the cost of electric power.  Greatly increasing a business’ costs that consumes a lot of electric power.  Like an automobile assembly plant.

The carbon tax is anti-business.  It makes for a less business-friendly environment.  So is it any wonder that a business leaves a place that grew more business unfriendly while they were there?  This is the cost of environmentalism.  And fighting the specter of global warming.  You put people out of a job.  And ruin their lives.

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