Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Action, Environment and Heritage) Share this | Link to this | Hansard source

I refer to the impact of the carbon tax on three businesses within my electorate of Flinders. The first is Sunbather Pool Technologies in Hastings. This was founded in 1974, by Simon Boadle, so it is nearly 40 years old. It manufactures pool-heating systems and pool covers around the country and it employs 60 people across three states. In particular, the carbon tax will, according to Simon, push up the cost of the petrochemical based raw materials they use, the cost of electricity, and the cost of freighting parts and materials between each state of production as of 2014 and off-road diesel immediately. They face competition from Chinese companies. Simon has said the increase in manufacturing costs will have an impact on their competitiveness and will put at risk their Australian manufacturing operations. He is doing everything he can to ensure he protects these jobs but he worries that the squeeze will continue.

Secondly, we have Carroll's Injection Moulding of Hastings. Carroll's was founded in 1994 by Mick and Marina Carroll. They employ six people in manufacturing quality plastic parts, and I have spent time onsite on the manufacturing floor. They make products for light industrial and commercial uses. Whether in air conditioning or automotive products, they contribute to the Australian manufacturing cycle. They are on tight margins and face stiff competition from China. Almost every day, according to Mick, they have calls or faxes from China offering to outsource the manufacturing of these products from Australia. They have spent a lot of money on energy efficiency in recent years and there is not much more they can do to minimise the impact of increased power bills as a result of the carbon tax. Therefore, they in particular face risks to their Australian manufacturing.

The third business is Jack Thompson Engineering. This is based in Hastings and also has a plant in Moorabbin. It was founded in 1934 and the General Manager is David Kent. We know this is an iconic business for Hastings, the Mornington Peninsula and Victoria and that it is already under pressure. It is an engineering firm that does a lot of work for the Latrobe Valley power companies. Maintenance spending by the coal-fired power stations in the valley is now minimal compared with the level of spending prior to the announcement of the carbon tax. This is the direct advice and evidence of David Kent. It has led to a significant impact on the business and on plans to close the Moorabbin factory. David Kent has made it absolutely clear that the carbon tax has been detrimental to confidence and to the flow of jobs throughout the manufacturing and manufacturing services sectors. Lately, the company has been advised by some suppliers of price increases directly attributable to the carbon tax. All of these three businesses will experience deep, significant impacts precisely because of the carbon tax.