Australian manufacturers are shocked by today's announcement that a billion dollars worth of clean energy grants have been put on hold.
The Clean Technology Investment Program, which was introduced 10 weeks ago as part of the government's carbon tax package, provides manufacturers with financial support to invest in energy efficient capital equipment.
A spokesperson for the Minister for Climate Change, Greg Combet, has confirmed that all grants are on hold while a review is undertaken and the government looks for budget savings.
"It's a normal part of the budget process to ensure taxpayers get value for money," the spokesperson said.
Only last month (September, 2012) CCN reported that West Australian company Naturaliste Vintners will reduce carbon emissions from its refrigeration systems by more than 50 per cent by moving to hydrocarbon refrigerants.
Naturaliste Vintners made the announcement after receiving a grant under the Clean Technology Investment Program.
The company was one of four WA manufacturers to receive $1.8 million worth of funding to support the installation of $4.8 million of energy efficient equipment.
Australian Industry (AI) Group chief executive Innes Willox said he was concerned about the program being put on hold while it is examined by the Expenditure Review Committee.
"Any pause in a program that is only 10 weeks old is concerning, particularly when it was established to assist industries to offset the impact of the carbon tax," Willox said on ABC Radio earlier today.
The AI Group surveyed 800 member companies in August, most of them manufacturers, and asked them about the clean energy grants.
While only 15 per cent had applied for grants under the program, Willox said a further 55 per cent intended to apply or were in the process of preparing applications.
"There is enormous interest out there among industry, so it is important the program continues," he said.
"Manufacturers need it to offset some of the costs from the carbon tax; it's a mechanism that lets them compete."