Labor's $2 Billion Aluminium Credit Is a Reckless Policy That Fails to Address the Core Issues Facing Australian Manufacturing
The Albanese Labor Government's announcement of a $2 billion Green Aluminium Production Credit is a classic example of throwing money at a problem it has helped create. While the government claims this initiative will support the aluminium industry, it fails to address the underlying issues threatening the sector's survival.
If the government truly cared about the metals industry, it wouldn't have blocked a crucial Senate inquiry into the health and future of Australia's metals manufacturing industry. This inquiry aimed to investigate the challenges facing our smelters and refineries, including skyrocketing energy costs, regulatory burdens, and international competition. However, Labor, in alliance with the Greens, used its numbers in Parliament to block the inquiry without providing any explanation for this extraordinary move.
The government's renewable energy policies have driven up electricity prices, making it increasingly difficult for energy-intensive industries like aluminium smelting to remain viable. For instance, Rio Tinto has warned that its Tomago aluminium smelter in New South Wales could close by 2028 due to unaffordable energy costs, according to a report by The Australian. This situation is not unique; other smelters across the country are facing similar challenges.
The government's $2 billion credit scheme is a short-term fix that does nothing to address the root cause of the problem, unreliable and expensive energy. Instead of investing in temporary subsidies, the government should focus on providing affordable, reliable, and secure energy to support our manufacturing sector.
It’s also worth noting that the government themselves have quoted that aluminium manufacturing contributes 3 - 4 per cent of Australia’s greenhouse gas emissions, which is roughly 3 - 4 per cent of 1 per cent of global emissions. $2 billion is an enormous sum to be spending for such a minimal reduction in global emissions, money that could be far better spent on policies that actually strengthen our industries and energy security.
The Coalition believes in a balanced approach that includes investing in new technologies while ensuring that traditional industries have access to the energy they need to thrive. We are committed to supporting Australian manufacturing and ensuring that our industries remain competitive on the global stage.
ENDS
Caption: Federal Member for Dawson and Shadow Assistant Minister for Manufacturing and Sovereign Capability, Andrew Willcox, says Labor’s $2 billion “Green Aluminium” announcement is throwing taxpayer money at a problem of its own making, warning that soaring energy costs and unreliable renewables are putting Australian smelters and manufacturing jobs at risk.
Contact: Amanda Wright | Media & Communications Adviser
P | 07 4944 0662 M | 0455 456 705 E | Amanda.Wright@aph.gov.au