Australia’s conservative Liberal-National government has sought to blame the country’s carbon price laws for adding to the forecast losses announced by Australia’s flag carrier airline Qantas.
Qantas, which says it will loose up to $300 million, has announced plans to shed 1000 jobs over the next three years.
AAP Newsagency reports Environment Minister Greg Hunt said the carbon price had added $106 million to the operating costs of the airline, which earlier forecast a $300 million loss for the six months to the end of December.
His comments prompted an angry response from opposition Labor Party leader Bill Shorten.
“I spoke to Alan Joyce an hour ago. The carbon tax has nothing to do with it. Stop politicising job losses. Shame on you,” Mr Shorten said to Mr Hunt on the floor of parliament.
Australia’s carbon price, a fixed price Emissions Trading Scheme (ETS) until 2015 when it reverts to a market based ETS, is currently under repeal by the Liberal-National government, although Labor and the Australia Greens Party are blocking the moves in the upper house Senate.
Mr Hunt said it was clear the carbon price was putting pressure on Australia’s aviation industry.
“The Australian aviation sector is clearly a sector under real pressure,” Mr Hunt said after pointing to the Qantas announcement on job cuts.
He said the Qantas 2013 annual report highlighted the carbon price added $106 million to the airline’s operating expenses.
He said the carbon price added $47.9 million to the Virgin airlines group costs.
“The costs are real,” Hunt said.
Prime Minister Tony Abbott said Qantas was under significant competitive pressure.
“We grieve for every worker who’s job has been lost, we grieve for them, we appreciate just how difficult this is for them and their families,” he told parliament.
“The best thing that we as a government can do for the workers of Australia is do our best to create and strong and prosperous economy.”
Qantas shares have been placed in a trading halt on the Australian Stock Exchange and the financial ratings agency Standard & Poor’s has advised that Qantas’ credit rating of BBB- (outlook stable) has been lowered one notch to BB+ (outlook negative).
