Title is from http://www.climatespectator.com.au/commentary/albanese-first-dirty-dozen-falls#comment-236211. Here’s my feelings about it:
In Victoria, aluminium smelting is especially crazy. Liberals deal for power for Portland was geared to world price of aluminium, not cost of production. Based on report by Turton, 2002, they pay a whole 1.5cents/kWh. The only part of SEC not privatised is the part which transfers taxpayers money to Loyang, owned by IPR-SUEZ, also owners of desal plant. Premier Brumby was mever game to suggest that desal would get better than 6.5 cents/kWh.
If subsidy is 6.5-1.5 = 5cents/kWh then annual subsidy amount to 5 x 15,000kWh/ton x 550,000ton/year = $412,5M/year. If you do the numbers for amount of carbon tax they don’t pay, it’s the same again. With this much annual allocation of taxpayer money, surely Portland could attract sensible industry, to become a serious regional city even attracting people away from worsening sprawl of Melbourne?
Countries making money out of aluminium are adding value, with alloys, extrusions and fabrication. We export more than 80% as virgin ingots and import more than 30% of our demand.
The international cartel of aluminium smelters is as ruthless as the mafia and as tax exempt as the church.