Tuesday 17 March 2009

John Tate going it alone, in The Australian

Without any consultation with fellow Councillors, Cr John Tate talks down Newcastle's new economy in the national media.

At a time, when the Lord Mayor should be showing leadership and lobbying for well-paid, long-term, sustainable jobs for Newcastle he sits on the fence and ties in Newcastle as "a mining town".

Newcastle is not a mining town and the coal industry in the Hunter has been in decline (in terms of jobs) for years. The Lord Mayor is seriously out of step with his constituency and is speaking contrary to Council's adopted policies.

Now is not the time for delay! On the contrary, it is time for real action and Newcastle should be leading the way.

Here's what was said in The Australian.

THE mayors of three of the nation's biggest mining cities have demanded Kevin Rudd delay introducing carbon emissions trading, warning it will smash jobs and seriously damage key regional areas.

The mayors of the traditional Labor strongholds of Newcastle, Gladstone and Mount Isa have called for the emissions trading scheme to be put off.

And the managing director of Frontier Economics, Danny Price, who conducted still-secret modelling for the NSW Treasury on the Rudd Government's plan, said the impact of the scheme across industrial regions, including central Queensland, the Hunter and Illawarra in NSW and Victoria's Gippsland, would be "very high" and "very severe".

"In those regions, the effect on regional GDP would be many, many times more than the national effect forecast by the Treasury, which predicted an ETS would cut 0.1 per cent of average annual growth," Mr Price said.

The growing opposition to the Rudd Government's ETS came as the Opposition intensified its attack on the scheme as a job destroyer, with Malcolm Turnbull declaring the Coalition would not vote for the ETS in its current form.

After the Opposition Leader's weekend declaration that the Coalition would not support a 2010 start-up date or the current design of the Rudd plan, the Government has become increasingly isolated on its support for the scheme.

Newcastle Lord Mayor John Tate said any sensible person had to be concerned about climate change, but he saw no harm in delaying the introduction of the ETS while also pursuing alternative energy sources and developing technologies to reduce emissions from coal.

"I just can't understand why you would put that sort of impost on Australian industry and agriculture at a time when we are trying to compete with the world," Mr Tate said.

"I would urge the Government to consider the economic future and the job future of our citizens. Don't bring an impost on business large or small that's going to affect the viability of those businesses. It's just like another tax."

Mr Tate said Newcastle was faring reasonably well in the current economic climate because the federal and state governments were funding massive infrastructure spending, including a new coal loader at the city's port, works to deepen the south arm of the Hunter River and more than $580million on rail improvements. The spending was designed to boost the city's capacity to export coal.

Mount Isa Mayor John Molony said mines in his community employed 4000 people, including 300 apprentices.

"I believe the ETS should be held in abeyance until the economic downturn is over," Mr Molony said.

Mr Molony said copper and lead smelting and copper refining in Mt Isa and Townsville added major value to the nation's exports and would be severely hindered by emissions trading.

Stressing that the problem of climate change required global action, he said it made sense to delay Australia's contribution to reducing emissions until it was clear what action other nations would take.

Gladstone Mayor George Creed, whose city's port is the exit point for massive coal exports from central Queensland, said the ETS would damage his community's industrial viability at a time it could least be afforded.

Mr Creed said mines and heavy industry in Gladstone were already shedding jobs, and Australia's total carbon emissions accounted for a fraction of the world's output.

"We are not going to hurt anything in the world if we wait for another year or two," Mr Creed said.

Latrobe Mayor Lisa Price, who represents an area that includes three open-cut brown coal mines, said her community was sitting on 500 years' worth of coal supplies and would not accept emissions trading without clear undertakings on structural adjustments to replace the jobs lost in mining.

The mayors spoke out as independent senator Nick Xenophon said the Government's legislation was doomed in the Senate, given that all parties on the cross benches believed it to be fundamentally flawed.

During a sustained question-time attack on the claimed job-destroying consequences of the ETS, Mr Turnbull suggested the scheme should be shelved until the outcome of the UN climate change negotiations in Copenhagen later this year were known.

The Opposition Leader said the Government should not commit itself before the administration of US President Barack Obama clarified the details of its proposed emissions scheme.

Mr Turnbull cited a confidential briefing from coalmining giant Xstrata predicting that the scheme would force the closure of up to four mines and cost 1000 jobs, most of them in Queensland.

But Mr Rudd said the Government was determined to act on climate change, saying the economic costs of inaction would be far greater than the costs of action, particularly for a hot and dry nation such as Australia.

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