Protect Australian jobs

The future of several thousand Australian jobs could be at risk if the Federal Government continues with its free trade policy.

Many of those jobs are in the South East of South Australia where Kimberly-Clark Australia (KCA) manufactures tissues and toilet paper at Millicent, near Mount Gambier.

KCA is a subsidiary of the US-based Kimberly-Clark Corporation.

The Customs Department, which comes under the Attorney-General’s portfolio, last year allowed the importation of cheap tissue paper from Asia.

KCA and workers say this contravenes anti-dumping policies, but the government persists in saying the issue is a competitive one, rather than dumping.

That’s my summary of the following text, beginning with a media release issued by KCA on February 10. That sets the context for the complete Hansard record of a Senate question asked by Nick Xenophon on February 25, answered by Penny Wong for the government.

I don’t know or care about how dumping is legally defined. I just know that some countries have an unfair competitive advantage when it comes to manufacturing because of cheaper labor, less stringent environmental regulations, etc.

According to the paper workers union (CFMEU), one Asian competitor destroys Indonesian rainforest and logs illegally, threatening endangered species such as the Sumatran tiger (pictured); employs children as cheap labor, forcibly removes indigenous people and is financially inept.

Apart from that, they are good corporate citizens.

MEDIA RELEASE (February 10)
Kimberly-Clark calls for a fair deal on Australian tissue manufacture

The Australian Government’s removal of dumping duties on imported toilet paper from Indonesia and China puts local manufacturing of product under serious threat.

“Kimberly-Clark has invested more than $300 million in tissue manufacture for its Kleenex®, Wondersoft® and Viva® Towel brands in Australia since 2000,” said company spokesperson, Ross Hearne.

“The growth in imports will likely result in further major investment ceasing. This could, in turn, eventually jeopardise 650 direct jobs in South Australia, long term, and indirectly around 1500 jobs in the South East of the state.”

“We are not asking for special treatment, simply that the Government maintain fair competition between imported toilet tissue and our locally manufactured Kleenex® and Wondersoft® products,” said Ross.

“We are asking the Government reinstate the dumping duties on toilet tissue from Indonesia and China immediately and to reinvestigate the case which, in the final appeal, we believe was flawed.”

CFMEU media release (February 22)
Union Pressures Rudd Govt to Act on Dumping as Jobs Put at Risk

Unions have launched a concerted campaign to force the Rudd Government to overturn a decision to allow millions of rolls of toilet paper to be ‘dumped’ in Australia, threatening local manufacturing jobs.

The products from China and Indonesia, which were sold up to 45 per cent cheaper than in their home countries, have caused serious concern among timber and paper workers around Australia.

Several unions have written to Attorney-General Robert McClelland warning that the Federal Government had set a “dangerous precedent” that poses a threat to Australian workers and industry and requesting an urgent meeting.

CFMEU Forestry and Furnishing Products Division National Secretary Michael O’Connor said the union would also campaign on the issue in the lead up to the South Australian election, where manufacturer Kimberly-Clark has already flagged the potential loss of 1,500 jobs as a result of this decision.

“There is a groundswell of concern in regional Australia over this decision, which threatens to open the flood gates to foreign companies saturating the Australian market with cheap products in a deliberate attempt to destroy local industry and competition through predatory pricing,” Mr O’Connor said.

“With up to 20 ‘timber seats’ around Australia, where forestry, paper and timber products are big employers, the Federal Government would be wise to move on this issue now, rather than allow it to become an election issue.

“Exporters from China and Indonesia are hurting the tissue making industry by selling product at a lower price than is charged in their home markets, a price significantly below what the WTO antidumping agreement regards as constituting ‘normal price’.

“Even the Government’s own Customs and Border Protection Service has admitted that this dumping of 20,000 tonnes of toilet paper has caused injury to local industry.

“All we are asking is for the Government to implement an antidumping system which prevents the targeting of Australian jobs and guarantees local industry’s right to compete on a level playing field.”

SENATE HANSARD (February 25)
Trade: Dumping Duties

Senator XENOPHON (2.41 pm)— My question is to Senator Wong, the Minister representing the Attorney- General, and is in relation to the decision to lift dumping duties on toilet paper products imported from Indonesia and China. In December 2008, toilet paper products from Indonesia were found to have been dumped on Australia at up to 45 percent below its domestic value and up to 22 percent from China. A reinvestigation into this case was finalised in December last year, resulting in the lifting of these dumping duties even though the products were being dumped at well below their domestic value. Customs determined that material injury to Australian industry by the dumped imports was not foreseeable and imminent.

However, aggrieved domestic parties were constrained by providing submissions and providing evidence even though the basis for analysis was changed by the Trade Measures Review Officer. My question to the minister is: why does the reinvestigation not include consultation with domestic parties, especially in circumstances where the basis for analysis is changed?

In such cases, does it not seem reasonable that the entire investigation be reopened?

Senator WONG (Minister representing the Attorney-General in the Senate)— I understand Senator Xenophon had a detailed discussion with the Attorney-General this week in relation to this matter. Obviously the government gives very serious consideration to any antidumping issues and is concerned to ensure that Australian jobs and Australian industry are protected when dumped imports cause or threaten to cause material injury.

In terms of the facts of the particular case, the former Minister for Home Affairs published a dumping duty notice in respect of toilet paper from China and Indonesia in December 2008 following recommendations from Customs and Border Protection. Applications to review the former minister’s decision were accepted by the Trade Measures Review Officer, who subsequently conducted a review and recommended that all findings be reinvestigated. Pursuant to those recommendations, the Attorney-General in June of last year directed Customs to reinvestigate all findings. In December, the Attorney-General accepted the Customs and Border Protection recommendation from that reinvestigation that these antidumping duties be revoked.

I note that in the senator’s question he asserted that the basis for analysis from the original investigation was changed by the Trade Measures Review Officer.

This is not the advice of the government. We believe that is an incorrect assertion. There was no change to the basis of the analysis. Customs and Border Protection was directed to reinvestigate all findings of the original investigation, and that occurred within the relevant legislative framework.

I do note that the senator, in the context of this discussion and also in estimates, has raised concerns about that legislative framework. I would advise the senator, through you, Mr President, that that is a framework that has been in place for many years, well preceding the election of this government, and under that framework no new submissions were considered nor could be considered. As the senator is aware, the reinvestigation found that the toilet paper exporter was not the cause of, nor the likely cause of, material— (Time expired)

Senator XENOPHON— Mr President, I ask a supplementary question. Does the government not consider the possible loss of up to 4000 jobs nationally as a result of this one decision, including 1500 in the south-east of South Australia alone, to be ‘material injury’?

Senator WONG— As I said in my earlier answer, of course the government is concerned to ensure that Australian industry and jobs are protected where dumping of imports causes or threatens to cause material injury.

The reality is that Customs concluded that the injury suffered by the applicants was caused more by competition in the industry, not dumping. I understand the concerns which have been raised by the senator and also by employees and some members of the industry.

The fact is that the government made its decision on the basis of advice and that decision was made on the basis of the cause of any injury. The fact is that the international antidumping system requires dumped goods to have caused material injury to the Australian industry. That was not the finding of Customs nor the advice— (Time expired)

Senator XENOPHON— Mr President, I ask a further supplementary question. Under section 269TAG of the Customs Act, will the Attorney-General order a new investigation into this case, opening up the review to allow the domestic industry to present its case and issue a stay of lifting of duties to ensure no impact on the domestic industry while a fresh decision is being considered? Wasn’t the competition caused by the dumped goods in the first place?

Senator WONG— I think the second assertion is not consistent with the advice that I have read out in terms of explaining what the findings of Customs and Border Protection were. Also, in relation to the first supplementary question, I did not have the opportunity to make the point that Customs, on my advice, did consider price, volume and profit effects as well as other economic factors, including employment. That is in response to your earlier assertion. I am advised the Attorney- General does not have the power to direct Customs to undertake another investigation. There are avenues of appeal available to parties. I am also advised that a new application for dumping duties can be made by Australian industry at any time. In addition, under the section in the Customs Act to which the senator refers, it is possible for the Attorney-General to initiate an investigation. Justification of such investigation would require a written application on behalf the Australian industry, and— (Time expired).

STATE ELECTION ISSUE
Premier writes to the Prime Minister

Premier Mike Rann has stepped into the fight for Millicent’s Kimberly-Clark Australia mill, calling on Prime Minister Kevin Rudd to reconsider a decision that threatens hundreds of South East jobs.

More than 200 senior managers, union leaders, contractors and workers at the KCA mill gathered last week in an unprecedented rally to voice opposition to a Federal Government Customs decision that could pave the way for cheaper tissue imports.

Workers took the step of writing to Mr Rudd to call for dumping duties to be retained, while Member for MacKillop Mitch Williams called on the Premier to intervene.

After calls from The Border Watch this week, Mr Rann’s advisers yesterday released a letter the Premier sent on Wednesday to the Prime Minister.

“I have recently received representations in relation to a decision by the Commonwealth Government to remove anti-dumping duties from certain tissue papers exported to Australia from the People’s Republic of China and the Republic of Indonesia,” Mr Rann wrote.

“I am advised that the issue as to whether dumping occurred is not in dispute.

“I understand that the decision to remove the duties was made on the basis that the impact on Australian firms from the dumping had not been material.

“This issue has caused widespread concern, as industry considers that material injury has been caused by the dumping and significant harm to Australian manufacturers could occur, should the decision stand.

“Kimberly-Clark Australia employs 640 people at Millicent in South Australia and supports a further 830 people in the local economy, or 6.3pc of employment in the South East region.

“Without protection from products imported at subsidised cost, the South Australian operations of Kimberly-Clark will find it difficult to secure further investment, putting these jobs at risk.

“On this basis, I ask that you look into this matter and take all reasonable steps to have this decision reconsidered.”

Media release from the CFMEU
Union backs independent candidate

Paper workers have voted to back independent Darren O’Halloran to stand as a candidate in the electorate of MacKillop in the South Australian State election to highlight the hundreds of local manufacturing jobs put at risk after the Federal Government allowed foreign-made toilet paper to be dumped in Australia.

The Millicent sub-branch of the CFMEU Pulp and Paper Division this week agreed to provide financial and practical support for Mr O’Halloran’s campaign.

“After lengthy discussion and debate the committee unanimously endorsed a motion that commits financial assistance to Darren’s campaign which highlights this important issue,” sub-branch secretary Kevin Millie said.

“The committee did not take this decision lightly, but based on the threat to our jobs and the sites future the committee felt that this action is appropriate in the current circumstances.”

Up to 20,000 tonnes of imported tissue products from China and Indonesia have been dumped on the local market, sold up to 45 percent cheaper than in their home countries, in a deliberate attempt to undercut local producers.

CFMEU Pulp and Paper Division Federal Secretary Alex Millar said in Millicent alone, home to the Kimberly-Clark mill, up to 1500 jobs are threatened by the decision.

“Many workers in regional Australia are worried by the Federal Government’s decision to allow this to happen, which is why we think it is important to support Mr O’Halloran’s campaign to have the policy overturned,” Mr Millar said.

“All we want is a fair system that creates a level playing field by preventing this kind of predatory dumping.

“The SA election is a warning to the Rudd Government that if they fail to act and protect these jobs the union will be forced to expand the campaign around the country in the run up to the Federal Election later this year.”

• External link: CFMEU anti-dumping campaign