23.8.11
Bluescope SteelFactsheet: (22-23 Aug 2011)
- It said the impending carbon tax[1] was not a reason for the decision.Workforce reduction of around 1,000 people, with approximately 800 at Port Kembla and 200 at Western Port.
- Blamed the high dollar and soaring imput costs for a $1 billion loss in 2010-11
- No longer exports steel
Possible financial compensation via :
1)Carbon Tax – Steel Transformation Plan
"The announcement of the Government’s Steel Transformation Plan (STP) on 10 July 2011, effectively shields BlueScope from any material cost of the Carbon Tax for the first four years of the scheme.
2) BlueScope Australia & New Zealand (BANZ) Restructure
"Following the announcement to restructure the Australian and New Zealand businesses on 10 March 2011 from three businesses into one consolidated business (BANZ), the design and implementation of the restructure is now well advanced and will deliver a more efficient and effective customer interface.
3) Further Fixed Cost Reductions
"In FY2011, the Company has been able to achieve a further $38 million in fixed cost reductions, whilst successfully maintaining the cumulative savings of $696 million ($340 million in permanent savings and $356 million in temporary savings), based on FY2008 base levels.
Definitions:
[1]A carbon tax is an environmental tax that is levied on the carbon content of fuels. It is a form of carbon pricing. A carbon tax can be implemented by taxing the burning of fossil fuels—coal, petroleum products such as gasoline and aviation fuel, and natural gas—in proportion to their carbon content.
[2] Global Financial Crisis, GFC
[3] FY= financial year
Voluntary redundancies: Acceptance of the termination of employment by an employee on the basis of terms offered by the employer.



