The Federal Government says it is not ignoring the cement industry’s concerns about the extra costs associated with an emissions trading scheme.
The Opposition says Cement Australia is threatening to scrap a $1 billion expansion at Gladstone, in central Queensland, because of the cost of the scheme.
Queensland Nationals’ Senator Ron Boswell says the scheme will cost the cement industry an extra $20 million a year.
Climate Change Minister Penny Wong says the Government is aware of the concerns.
"We are providing very substantial assistance to the cement industry," she said.
"Under the Government’s white paper we anticipate the cement industry would in fact get 90 per cent of their carbon pollution permits free, so that is a very substantial amount of assistance to that industry.
"What we know is that Senator Boswell is opposed to any action on climate change because he doesn’t think climate change is real."