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2 July, 2012 9:57AM ACST Whyalla expected to boom, not bust, under the carbon tax The Federal Government is predicting a jobs and investment boom for Whyalla, despite speculation it would be harmed by the carbon tax. 1 The Federal Government said it could not say whether there would be more Government help for Whyalla's steelworks - but the city's future appears set to thrive. Yesterday Special Minister of State, Gary Gray, was among two Ministers to visit Whyalla to counter claims from the Opposition Leader Tony Abbott that the city would be 'wiped off the map' by the carbon tax. Earlier this year, Steel producer OneSteel received a $64 million Federal assistance advance. Mr Gray says in terms of the carbon tax, it was not appropriate to consider whether more help will be needed, but Whyalla was on track to prosper. "The future holds what the future holds - what we do know is that already there are hundreds of millions of dollars of new investment. "That's going to create jobs, economic activity, a whole new export growth industry out of the Eyre Peninsula and out of South Australia." While Member for Grey Rowan Ramsay welcomed the Minister's visit, he was not convinced that Whyalla could prosper under the carbon tax. He said the Government was not taking seriously the effect the Carbon Tax could have on the steelworks, and other possible investments that underwrite Whyalla's future. "The Government does not understand the decision making processes for international investment." Mr Ramsay questioned what would happen when OneSteel was no longer supported by the $300m Federal assistance, delivered as part of the Steel Transformation Package to offset the carbon tax. "The question needs to be asked, what will happen in three years time when this subsidy runs out and the tax has increased to $29 a tonne?" Looking to prepare for its carbon tax future, as from today the company OneSteel will be known as Arrium. The name change is the result of the company wanting to reflect its broader mining operations, not just steelmaking.
would like to borrow their crystal ball for a few hours.
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