Packaging giant Visy has hit out at the Federal Government’s draft carbon reduction scheme saying based on the proposed model, at a carbon cost of $20 per tonne Visy would be forced to immediately close two paper remanufacturing and recycling facilities in Australia, resulting in the loss of 160 direct jobs.
In a submission the company also says the proposed Carbon Pollution Reduction Scheme (CPRS) would damage Visy's corporate engine, Visy Pulp & Paper, and therefore the rest of the group. Planned investment of at least $1bn would be jeopardised.
The company states, “Clearly, the quantum of the carbon cost at the start of the scheme, and into the future, will determine the severity of CPRS impact on Visy's business. However, the carbon price is not yet known, and Visy faces considerable uncertainty in assessing the impacts, and in budgeting for its immediate and longer-term operations.”
Visy has examined the CPRS Green Paper, and proposes the following design changes:
- Recognise the carbon abatement benefits of domestic recycling and remanufacturing, and net this off companies' emissions liability
- Freely allocate permits to all liable entities up to the cap
- Grant EITE compensation on the basis of the actual carbon cost impost
- Provide for full credit of existing GGAS abatement
Visy continues that it sees considerable new business opportunities arising from Australia's orderly transition to a low-carbon economy. However, the Government must ensure these opportunities are not cut short by prescriptions which might inadvertently stall businesses' capacity for reinvestment.
The company concludes that it is not seeking special consideration however the higher cost of products bearing a carbon price will need to be borne by Australian consumers.
