May 16, 2012:

THE potential closure of the Caltex oil refinery at Sydney’s Kurnell would be a body blow to the New South Wales economy and leave Australian motorists exposed to future petrol price rises, says the Australian Workers’ Union (AWU). The union’s national secretary, Paul Howes, says the future of the Kurnell refinery is on a knife’s edge, with about 800 jobs at risk.

Caltex in February flagged possible closure of its two refineries, at Kurnell and in Brisbane. “Caltex will ultimately make a commercial decision based on whether or not they can make more profit by importing petrol, rather than refining it in Australia,” Mr Howes says in a statement. “It is clearly a marginal decision for the company, but the implications for motorists and workers are serious – especially if Caltex gets it wrong.

“Retaining a local manufacturing presence would give Caltex greater flexibility and would be an important safeguard for motorists should there be a spike in the cost of imported fuel.” Mr Howes says the AWU is working with Caltex’s local management to deliver productivity gains at the Kurnell refinery.

“The Kurnell refinery plays an important role in Australia’s energy security,” he says. “We cannot afford to reduce our domestic refining capacity.”

By cowracommunitynews.com