The first domino falls: Cement Australia

It's a sign of the times: the first factory to close as a result of the Rudd Government's insane Cap-and-Tax policy. And this before the legislation is even enacted.

In today's Brisbane Times we read that Cement Australia is to close its Rockhampton plant next month and displace 31 workers.

In what is bound to become a fairly regular occurence over the coming months and years, the Times reports that:

Cement Australia, a private company that produces half Australia's cement, will mothball its Rockhampton plant next month due to the projected cost impact of the CPRS.

The CPRS is the straw that broke the camel's back, as the plant's viability had already been hit by the global financial crisis and big Queensland Government royalty and tax rises.

It also notes that:

All 31 employees will be offered alternative jobs in the company.

The reality of the situation is that these 31 jobs will cease to exist. And what is the response of our Dear Leader of the Carbon Revolution to this 'inconvenient truth'? Why, to deny all responsibility, of course. In the Senate today, she asserted:

"a 25 per cent drop in demand for cement and the global recession contributed to the company's decision to close the plant."

Apparently the Government is only responsible when jobs are created - never when jobs are trashed.

And what do the owners of the plant have to say on this matter?

"The pity is the CPRS has the unfortunate effect of stopping us putting in new technology. Our plan always was to put a new kiln into the Gladstone plant, but the trouble is all of our numbers for the CPRS say that the carbon impost will stop it going ahead.

"Cash is hard to come by. We're all worried about the rollover of our loans. To suddenly suggest you can rush out to the bank and borrow as much money as you need for carbon abatement, even if all the numbers stacked up, that's questionable."

And it is precisely for this reason that more and more industries are going to be heading towards the exits when this insane policy is landed on an unsuspecting public.