Tax repeal lifts burden
18 July 2014
DEVONPORT, TASMANIA - The end of the carbon tax will make jobs safer and lift profits at Devonport manufacturer Delta Hydraulics.
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That is according to managing director John White.
``It takes the burden off us,'' Mr White said yesterday.
He said one of Delta's manufacturing processes was hard chrome-plating, which he described as all electrical input.
``People try to say industry should use more efficient processes.
``I'm afraid that the boiling of a litre of water in Tasmania takes the same amount of energy it does in Beijing.
``So this mantra that the Greens keep on pumping out of more efficient processors . . . physics is a natural law and natural laws can't be compromised.''
He said Delta never increased its prices because of the carbon tax, choosing to wear the costs.
``We did that so we wouldn't lose our market.''
He said the end of the tax would cut about 5 per cent from chrome-plating costs and about 1.5-2 per cent of total business costs at Delta.
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`` . . . now we've got to rebuild our margins and see what the future brings''.
Bass Strait shipper SeaRoad will end a surcharge it levied on customers because of the carbon tax.
Chairman Chas Kelly said that would mean a small saving to customers.
``The portion of fuel surcharge which was subject to the carbon tax will be scrapped,'' Mr Kelly said.
