On the eastern side of Geelong is Point Henry. On it stands a fifty-year-old aluminium smelter and accompanying rolling mill.

This complex provides jobs for a thousand people and contributes to the livelihood of thousands more. Operated by Alcoa, Point Henry is, along with the Ford plant, one of the largest economic centres in Geelong.
The electricity consumption of Point Henry is massive. This is not Alcoa’s fault. While other industrial processes may use combustion or a chemical reaction, aluminium is made by passing a very large electric current though alumina.
To stop making it is not an option. As a lightweight material which has many uses – particularly for fuel efficient transportation – aluminium is part of the solution.
So lots of electricity has to be used – in the case of Point Henry, more than the rest of Geelong’s electrical consumption combined. In a state where electricity is generated by burning brown coal, the result is that the smelter is very carbon intensive.
And so you will not find a place in Australia more keenly watching the debate around a carbon price than Point Henry.
I would be lying to say that the atmosphere in the Point Henry lunch room right now is sanguine. A better description might be nervous. And they have a right to be.
Yet the fact is that the world, Australia and the aluminium industry face a hugely difficult problem. Climate change is a threat to the globe and plunging our collective heads in the sand will neither make it go away nor address the anxieties of the workers at Point Henry.
This nettle must be grasped.
There is no longer a doubt about the science.
We are pumping an unprecedented amount of CO2 into our atmosphere. The great preponderance of scientists predict that this will result in a markedly warmer planet. And, as it turns out, the first decade of this century has been the warmest ever recorded.
Given science has a healthy tradition of scepticism, it is not surprising that there are some scientists who say that the causal connection has not been established.
Yet when it comes to public policy it doesn’t have to be. There is enough science for us now to say, that the risk of our actions causing climate change, floods, fire, and famine is such that we must change our actions. This is the precautionary principle. And when it comes to climate change it was clearly established a long time ago.
All of this has been said before. But we still need to hear the message from the experts. No matter how blue in the face climate scientists may have become, now is not the moment to lose their voice.
In recent times the debate has acquired a new dimension. With thirty-two countries and ten US states pricing carbon, and with China installing carbon friendly technology by the day, it is now a case of Australia having to keep up.
If a premium is being placed upon production with no carbon footprint, then economies which produce with a large carbon footprint will fall behind.
Pricing carbon is a significant change. The Government will be working overtime to protect existing jobs in the way it prices carbon. But the job-impact of not putting a price on carbon is clear.
For if we don’t price carbon then in the fullness of time our industry will be consigned to the dustbin, including Point Henry.
This is why Alcoa supports a properly constructed carbon price.
Getting the scheme right really matters. Small details around a carbon price can mean big dollars. A quality national debate combined with strong local advocacy is vital to achieving an excellent final outcome.
It is on this score that Tony Abbott and the Liberal Party are so profoundly letting down our country. Carping “a great big tax” at every turn may make the nightly news in the short term but it completely diminishes the debate we must have in the long term.
The Liberal Party is one of the two great political parties in our nation. The country needs its meaningful engagement in the construct of a carbon price and its constituency needs representation in the framing of the final result.
The half-baked direct action plan is not the useful contribution Australia needs. It is a cheap political fix. And in their private moments every Coalition MP knows it.
Putting a price on carbon is a big deal. The lunch room at Point Henry is hungry for information. They need the best national discussion about a carbon price we can give them.
Sadly, right now, there is only one political party which is at the table and talking.
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