Jobs to go in Latrobe Valley due to carbon tax

22 Jun 2012, 7:53 pm   -   Source: Richard Davis, SBS
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SPECIAL REPORT: Thousands are expected to lose their jobs in Latrobe Valley ahead of the carbon tax next month, and the city is asking state and federal governments to absorb some of the economic pain.

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With the carbon tax due to start next month, Latrobe Valley expects thousands to lose their jobs.

A Victoria University study found the valley will be one of the areas worst affected by the carbon tax since it generates most of the state's electricity.

The Mayor of Latrobe City Ed Vermeulen expects around 2,000 job losses and is asking state and federal governments to absorb some of the economic pain.

“Our approach is to economically diversify the area here and we're working hard on that for instance we have the only aeroplane factory in Australia in Latrobe city,” he said.

But despite the best intentions, job losses are likely, and strikes that could cripple Victoria's electricity generation could follow.

Green groups, however, argue that the carbon tax will not have a signficant impact on the local economy.

“What we're seeing is Latrobe Valley generators are getting very large amounts of compensation in the early years of the scheme,” Mark Wakeham from Environment Victoria said.

As part of its carbon plan, the government is negotiating the closure of the worst polluting power stations. It will buy around 2,000 megawatts of capacity and then shut them down.

The Nationals' federal member for Gippsland, Darren Chester says the closure program is only making things worse.

“We're talking about hundreds of jobs hundreds of well-paid jobs being taken out of the local economy,” he said, “and that's all adding to this crisis of confidence in the local community.”

But some believe the carbon tax will actually help the valley.

The Gippsland Trades and Labour Council’s John Parker says the scheme brings certainty, and more jobs would be lost without the tax.

“Over the last ten years we haven't had that certainty,” said Mr Parker, “there's been no investment in the Latrobe Valley.”

So far, three Latrobe Valley power stations have been shortlisted.

EXTENDED INTERVIEW

SBS’s Richard Davis travelled to the valley and spoke to power station worker, Angelo Gaudiano, who reveals the personal cost of pricing carbon.

Angelo Gaudiano expects to lose his job after the carbon tax begins and is deeply frustrated that the valley is carrying much of the burden of reducing greenhouse gas emissions.

Watch Richard Davis's report on YouTube:

Carbon Tax , Latrobe Valley , Powerplant

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Labor have never cared for Latrobe Valley

Cameron - from Traralgon, 10 months ago

The Australian Labor party use too take Latrobe Valley for granted. Now they are never likely to hold the seats of Morwell and McMillian again. Labor are supposed to be for the workers but have sent this very working class area down the drain. They are a disgrace and the retric they carry on with about support packages for the valley are just talk and will never happen. Thanks Labor you have destroyed the valley just for your pathetic green vote!!!

Have you lived in the Valley?

Jason Stockdale - from Grovedale, 10 months ago

If you've never lived in the valley and experienced the jobs market there then you should not be criticising his position. The Latrobe Valley is a small country area and is 100% dependent on the 5 power stations that are in the area to maintain the economy. Wind power jobs? Are you kidding? Once a windmill is built it requires no upkeep. The power stations require thousands of workers each day just for maintenance - where will they go in Green power? There's nowhere that needs them!

Pseudoscience cost jobs

Peter - from QLD, 11 months ago

If world Government leaders really were concerned mans impact on the earth, mass tree logging would be halted, not tripped.

Tip of the Iceberg

Steph - from Magill, Adelaide, 11 months ago

This carbon tax is going to go down as one of the biggest blunders in Labour history. By making an underhanded deal with the Greens, Labour have turned their backs on their voters, the same voters they promised that a carbon tax wouldn't be implemented if they were voted in. Make no mistake, the price of power will quadruple over the next 8 years, brought about by Labour's bungling of the implementation. Hopefully the Coalition will bin it the moment they get in, and they will get in, very soon!

It's your fault

Bill Koutalianos - from Sydney, 11 months ago

This bloke helps to keep our lights on, our refrigerator running, the hot water, stove, microwave, TV, computer, trains, airports, factories, supermarkets and the office blocks humming and yet he feels that he's under attack by society. That's because we have let him down, by placing too much trust in our politicians, their scientists and some sections of our media. Invest some time investigating the climate scam for yourself, before it's your turn to worry about your or your family's future.

Hypocracy

Bill Koutalianos - from Sydney, 11 months ago

I don't accept that Angelo's job loss as inevitable. The UN IPCC have been exposed as liars. Under the Kyoto Treaty, Indian coal fired power plants received carbon credits / cash for their new coal plants. This was paid for through various emissions reduction schemes by charging electricity consumers in developed nations more for their power. The CFMEU official who appeared in the news story is a hypocrite, his organisation has supported climate and green activist groups demanding such outcomes.

Criticism Easy - from an Ivory Tower.

Anne Whitson - from Lane Cove, 11 months ago

Its quite easy to criticise others while forgetting that we have all benefited from cheap power for many decades. This has made our personal lives easier and allowed industry to expand and compete with overseas producers and allowed our manufacturers to stay afloat. It is hard to imagine how different our country would have been today without this cheap power. It is also sad to see the lack of compassion for people who are about to lose their jobs.

It is a blot on the state that a factory spewing out 16 million tons of Carbon/year

John C, Wilson - from Mentone, Mentone, Vic, 11 months ago

It is a shame and a blot on successive Victorian governments over the last 30 years have allowed this grand pollution machine to exist, to continue and not to have brought down successively restrictive regulations so that today's electricity generation would be breathaable with only modest carbon emissions and reduced levels of cancer and respiratory disorders. Without a carbon tax, the ownership will certainly not make any clean up investment. I have seen this before.

Caron Tax

Peter Roberts - from Wheelers Hill, 11 months ago

very hard to have sympathy for someone who works for one of the biggest polluters on the planet although that's not his fault. Has Angelo tried to get work in the fast growing wind power generation sector that is booming in that region?

Industrial Age - Green Sustainable Age

Jenny - from Brisbane, 11 months ago

I found this story to be completely biased and if you ask anyone if they want to move to get a job they would share they are reluctant to do so. The only thing is a lot of people have moved from their hometowns and followed the work and that's part of the work cycle. Stop dishing up hard luck stories about the carbon tax because someone has to change their career direction. Gosh, we all have a story to share about starting our careers again. The sky is not going to fall in.

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