Rising business costs, which are being exacerbated by factors such as the carbon tax and excessive regulation, have delivered a third major blow to the Whyalla region today.
Arafura Resources’ announcement that they will not proceed with a $1 billion mineral processing plant at Whyalla citing increasing business costs, including transport costs is the last thing anybody wants to see for a community like Whyalla.
Transport costs on rail and off-road heavy vehicles have already been pushed higher by the carbon tax, with on-road heavy vehicles to also be taxed should Labor be re-elected.
Projects with extensive transportation requirements, such as Arafura’s mineral processing plant at Whyalla, face a double whammy with the carbon tax hitting both processing and transport costs.
While the carbon tax is not the sole reason for this decision, this announcement is yet another demonstration that this is the worst possible time to be hitting Australian businesses with the higher costs associated the world’s highest carbon tax.
Arafura’s decision is a third blow for Whyalla, which has already been rocked by the withdrawal of Deepak Fertilisers’ proposed processing plant and the regional impact stemming from the postponement of the Olympic Dam expansion.
Under Labor the bad news just keeps coming for South Australian industry, with iconic companies such as Penrice Soda and Holden feeling the strain of higher costs too.
There is a better way. The Coalition will axe the carbon tax as a priority and will implement a one-stop-shop for environmental approvals as part of our campaign to slash the red tape that strangles business.
The Coalition’s plans will take the pressure off rising business costs, making investing in Australia more attractive and competitive again.