EXCLUSIVE: Thousands are expected to lose their jobs in Latrobe Valley ahead of the carbon tax next month, and the city is asking state and federal governments to absorb some of the economic pain.

With the carbon tax due to start next month, Latrobe Valley expects thousands to lose their jobs.

A Victoria University study found the valley will be one of the areas worst affected by the carbon tax since it generates most of the state's electricity.

The Mayor of Latrobe City Ed Vermeulen expects around 2,000 job losses and is asking state and federal governments to absorb some of the economic pain.

“Our approach is to economically diversify the area here and we're working hard on that for instance we have the only aeroplane factory in Australia in Latrobe city,” he said.

But despite the best intentions, job losses are likely, and strikes that could cripple Victoria's electricity generation could follow.

Green groups, however, argue that the carbon tax will not have a signficant impact on the local economy.

“What we're seeing is Latrobe Valley generators are getting very large amounts of compensation in the early years of the scheme,” Mark Wakeham from Environment Victoria said.

As part of its carbon plan, the government is negotiating the closure of the worst polluting power stations. It will buy around 2,000 megawatts of capacity and then shut them down.

The Nationals' federal member for Gippsland, Darren Chester says the closure program is only making things worse.

“We're talking about hundreds of jobs hundreds of well-paid jobs being taken out of the local economy,” he said, “and that's all adding to this crisis of confidence in the local community.”

But some believe the carbon tax will actually help the valley.

The Gippsland Trades and Labour Council’s John Parker says the scheme brings certainty, and more jobs would be lost without the tax.

“Over the last ten years we haven't had that certainty,” said Mr Parker, “there's been no investment in the Latrobe Valley.”

So far, three Latrobe Valley power stations have been shortlisted.

EXTENDED INTERVIEW

SBS’s Richard Davis travelled to the valley and spoke to power station worker, Angelo Gaudiano, who reveals the personal cost of pricing carbon.

Angelo Gaudiano expects to lose his job after the carbon tax begins and is deeply frustrated that the valley is carrying much of the burden of reducing greenhouse gas emissions.

Jobs gone, for such a pointless tax that won't change the weather one bit.   

Interesting question. How many green jobs have been created in the latrobe valley? Somehow I think these workers will be living off the dole for a while in wait for those 'green' jobs.

Shane B wrote on Jun 24^th, 2012 at 7:58pm:


We should never have had indoor plumbing and sewerage treatment plants because it put thousands of night cart workers out if a job in this country.
We should never had stopped whaling because it put thousands of whalers out of work n this country.
We should never have invented the electric light bulb because it put thousands of candle makers out of work in this country.
We should never have invented PC's because they put millions of office workers of work.
The list goes on forever

Awesome wrote on Jun 24^th, 2012 at 7:54pm:


Don't you worry about a thing. The cost to households of the carbon tax is just .7%! It's less than the price of a flat white once a week.

salad in wrote on Jun 24^th, 2012 at 8:09pm:



I'm more worried about Whyalla being wiped off the map on July 1st 2012.

Awesome wrote on Jun 24^th, 2012 at 8:12pm:


But you will have time to drink that flat white without the need to slam it down fast. And while you are drinking the coffee you can think of Julia Gillard and how she will control the earth's temperature. Good Gawd! Aren't we lucky to be living in this period of time.

Go ask the hard right.