Bluescope says government pollution reduction scheme will hit Australian jobs

Australia's biggest steel maker, BlueScope, has attacked the government's emissions trading scheme, a move that could trigger a fresh round of arguments before the federal government's legislation goes to the senate again in November.

Businesses causing heavy pollution and industry groups including the Australian Coal Association, have met Labour MPs and unions in Newcastle and Wollongong asking for more industry assistance. They have raised fears of a voter backlash on job losses in Labour heartland seats as a result of carbon trading.

The chairman of BlueScope Steel, Graham Kraehe told workers at the company's Port Kembla plant yesterday that under the free emissions permits under the Carbon Pollution Reduction Scheme, the company still would lose a minimum of $500 million in the decade to 2020.

He said that the company agreed with the government's objective of reducing carbon emissions without damaging Australian industry but the government scheme falls much short on those objectives.

He did not put a figure on any job cuts in NSW as throwing around threats of job losses would not be helpful, he said.

Earlier this year a study by the Mineral Council of Australia revealed that 1440 jobs in the Ilawarra region would be lost by 2020 as a result of the scheme, however, it took no account of new jobs that would be created in renewable energy .