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Tariff removal threatens South East jobs

Posted on February 11, 2010, 7:07am and updated on February 12, 2010 at 8:10 am

Only one week after 130 jobs were lost in the timber industry, fears are resurfacing that hundreds of jobs could be under threat at Kimberly-Clark Australia’s plant near Millicent and across the South East.

“Very concerned,” was how KCA corporate services manager Ross Hearne yesterday described how workers at the Millicent plant felt.

“Their morale is okay because they know they are running a world-class operation, but they are very concerned that they might be losing their jobs.”

The future of the plant, which is believed to support 1500 indirect jobs in the region, is at stake due to a decision announced by the Attorney-General on January 12 to revoke anti-dumping duties on toilet paper imports.

The tariffs were introduced in 2008 after an investigation by Customs concluded Australian manufacturers were being hurt due to price undercutting by Asian importers.

Moves to lift anti-dumping duties could mean cheap imports from Indonesia and China, entering the local market at up to 45pc below cost, could put KCA against unfair competition in the toilet paper industry.

KCA has invested $320m in its Millicent plant since 2002, but an uncertain future could jeopardise further upgrades, according to Mr Hearne.

“Investments could be affected in the short term and in the long-term investments could stop altogether, which could lead to the closing of the plant and the loss of jobs,” he said.

“All we are asking from the government is to go back to Customs and re-investigate the decision to remove dumping duties — we are not asking for special treatment, we are asking for playing fields to be levelled.”

Mr Hearne said cheaper imports would not necessarily bring toilet paper at reduced prices to consumers at retail level, but it would undercut profits and put local jobs at risk.

Siding with KCA in the bid to get the government to re-investigate the Attorney-General’s decision, Manufacturing Workers Union Millicent secretary Kevin Millie said KCA workers had already lost up to $30,000 in wages in the past year due to rostering changes at the 24-hour, seven days a week operation.

“KCA had been forced to cut hours due to the economic climate and lifting of the anti-dumping duties could add to further losses in wages and jobs at the Millicent plant,” he said.

“Major retailers win contracts with importers, which lead retailers to more prominently display imported products that are not necessarily cheaper for the consumer, but this leads to big profit losses for local products.”

Fighting for the Federal Government to reverse its decision to remove anti-dumping duties on imported toilet paper, Independent Senator for South Australia Nick Xenophon used the Senate Estimates hearings on Monday to ask how Customs reached the recommendations to remove the anti-dumping duties.

“This is about fair trade, not free trade for all,” Senator Xenophon said.

“The decision flies in the face of reality — the fact is there are 1500 jobs at risk in Millicent alone and potentially thousands more around the country.”

Meanwhile, Member for MacKillop Mitch Williams called on Premier Mike Rann to urge the Federal Government to save the 1500 jobs in the region.

“The threat to KCA’s Millicent operation from dumped imported tissue product is real and could cripple the local economy,” Mr Williams said.

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Comments

2 Responses to “Tariff removal threatens South East jobs”

  1. Concerned worker on February 12th, 2010 12:29 pm 1

    We are very concerned. I don’t know who the Attorney General thinks he is. I don’t think he will have his job for too long. Isn’t he supposed to work for us, not against us?

    Can’t be good for Australia.

  2. Alice on February 12th, 2010 1:20 pm 2

    Does the AG realise what the paper source for these companies are? They are cutting down rainforests!!! Allowing them to dump on our market is further fuelling that!!! Along with the very high possibility of Australians losing their jobs, the climate change is being accelerated by these companies, chopping down an unsustainable source! Think about it AG! More than our jobs are at stake here if you allow this to continue!!

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