Prime Minister Julia Gillard has dismissed coalition claims the Government's proposed carbon tax is causing economic jitters, as a major steel manufacturer axed a total of 1000 jobs in two states.
BlueScope Steel on Monday announced the cuts - which takes to 20,000 the total number of manufacturing jobs axed nationally since February - as part of a group restructuring to get its books back into the black after it reported a $1.05 billion full year loss.
The shock news came as about 180 trucks and vans, forming a "Convoy of No Confidence", descended on Canberra to present a petition calling for a fresh election to test the Government's mandate on the carbon emissions tax.
About 1000 people from every state and territory rallied outside Parliament House.
Three women from the convoy later stood in the public gallery of the lower house during question time and yelled "election now" but were not thrown out.
While no Government ministers met with the protesters, Opposition Leader Tony Abbott told the rally Australians were being "ripped off by a bad government".
"We say `no' to a carbon tax because we say `yes' to a manufacturing industry, we say `yes' to affordable transportation, we say `yes' to affordable energy and affordable power in this
country," Mr Abbott said.
Australian Greens leader Bob Brown described the truck rally as a "general smorgasbord of whingers".
In question time, coalition MPs linked the carbon tax to the axing of jobs at BlueScope, Qantas and Westpac, a rise in house construction costs as well as the failure of four out of five renovated properties featuring in the Nine Network television show, The Block, to reach reserve at auction.
The prime minister said there was no link between these events and the Government's proposed $23 per tonne carbon price, which is due to start in July 2012.
BlueScope itself said the decision to restructure its business by winding back exports to focus on domestic operations was due to adverse economic factors in the industry and was "not related" to the tax.
"It is quite wrong to misrepresent to around 1000 working people and their families the reason that their jobs are under threat," Ms Gillard said.
Treasurer Wayne Swan said carbon pricing would create new jobs through innovation.
"There are a lot of things that offend me about the opposition but one of the things that really offends me is how excited they get at job losses because they think there is some political credit in it for them," Mr Swan said.
The government announced a new advance facility under the $300 million Steel Transformation Plan (STP) to support jobs.
Ms Gillard said there would be talks this week with unions and manufacturers about other forms of assistance and how to ensure booming industries such as mining bought more Australian-made goods and services.
