Factories make hay while sun shines

MANUFACTURING businesses in Hoppers Crossing and Laverton North are the latest to benefit from federal grants to help the industry cope with carbon pricing.

Sausage and smallgoods manufacturer Wagners Fine Foods in Hoppers Crossing was given $41,000 to install a 33-kilowatt solar panel to reduce grid use and save an estimated $9000 a year in power bills.

Australia’s largest herbicide manufacturer Nufarm was awarded $28,000 to improve combustion efficiency, and is eligible for $15,000 to upgrade control systems for boilers at its Laverton North site.

The Clean Energy Investment package, which began in July, aims to help manufacturers invest in energy-efficient capital plant and equipment, and lower-pollution technologies. For grants under $10 million, the government will pay $1 for every $2 the applicant spends.

Nufarm project engineer Alistair Penna said the company, which employs 350 people at Laverton North, was feeling the pinch of the carbon tax through rising power and gas prices. The grant made it financially feasible to conduct upgrades to the boilers, he said, as the project would pay for itself after two years of savings.

Wagners Fine Foods owner Tom Wagner said rising power costs had made for tougher times, but the solar panel would cut the company’s use by about 85 per cent. “Electricity has been increasing more and more. We have coolrooms running 24 hours a day, 365 days a year, along with high-voltage machinery . . . it’s hard in the business world to stay afloat.”

Opposition industry spokeswoman Sophie Mirabella claimed the grants were not enough to cushion the blow of the carbon tax. “This tax is a reverse tariff on Australian industry and is resulting in a significant loss of competitiveness for those that are trade-exposed.”

But Prime Minister and Lalor MP Julia Gillard said the grants would help companies make practical improvements to energy efficiency. “This program is assisting local manufacturers make the transition to a low-carbon economy by investing in energy-efficient equipment and low-emissions technologies. Under our plan, businesses are becoming more competitive, more efficient and more sustainable.”