Black liquor is the refined waste from pulp and paper manufacturing, it is in fact a fuel. A bio-fuel recovered from the waste of production and it is used to produce power for the manufacturing process as well as excess power sold to the national grid.
So that’s good… isn’t it?
Well, it was until the government levied a $26bn tax on it.
“As a result of this foolishness every kilowatt of electricity sold into the grid by the paper makers just got more expensive. Every piece of paper you use just got more expensive. And every consumer product you buy, from cereal to light bulbs to laundry detergent, if it is packaged in paper or cardboard, it just go more expensive. Your children’s school supplies just got more expensive. Every administrative function in government and in business that requires a piece of paper just – got – more – expensive.”
Source: Running ‘Cause I Can’t Fly Read the rest, it explains it better than I can. I can just see the error of their ways. Now you decide.
Having been categorised as an ‘idiot’ by the one commenter who omitted to leave a link to verify what he said, I decided to look further.
Vaguely he is right. Check here: http://www.millwatch.ca/home/22-news/109-paper-industry-pushed-further-into-the-black-by-black-liquor-tax-credits
(Sorry, WP isn’t allowing links at the moment.)
But then that’s not the whole story either. Check here: http://www.bnet.com/blog/clean-energy/paying-for-healthcare-how-democrats-closed-an-energy-tax-loophole-that-doesnt-exist/1431
Like all matters corporate and politic, it’s a mess. But it doesn’t stop the flow-on effect of prices rises in the offing for all paper products and some power production, which was more my concern than the ‘health & welfare’ of a greedy industry.