Ballarat's Gekko Systems cuts jobs

GEKKO Systems is claiming it has been affected by the "uncertainty" of the federal government's new tax plan on mining profits and cut back nine of its workers a day after it was announced.The award-winning Ballarat manufacturer, which specialises in innovative mineral processing equipment, made nine of its 82-strong staff redundant yesterday. They were all locals.The company put the job losses down to the impact of the global economic crisis and the uncertaintly of the government's proposed Resource Super Profits Tax - announced on Sunday - which will involve imposing a 40 per cent tax on profits made from non-renewable resources from July 1, 2012."The global economic crisis has made investors wary and it is difficult for mining companies to raise capital finance for new mining projects," the company said in a statement."The uncertainty of the planned government resources rent tax has also unsettled local mining investors."Gekko Systems managing director Elizabeth Lewis-Gray said the company tried to avoid staff redundancies."Gekko has experienced these pressures for some months now and had undertaken operating cost reductions, including voluntary pay reductions by management and team leaders, in an attempt to avoid having to make staff redundancies. We have a high level of interest and proposals in the market place, but these projects continue to be delayed," Ms Lewis-Gray said.Workers were told of the redundancies after a management meeting yesterday morning. Some workers seen leaving the Learmonth Rd company in the afternoon declined to comment.Federal MP Catherine King said the government did not want to see more job losses in Ballarat."The local economy, as well as employment prospects, continue to be challenging after one of the most difficult global financial periods on record," Ms King said."Gekko certainly acknowledges the tough international conditions that have led to this decision."Ms King said jobs had been a focus of the government for more than 18 months with 400-plus projects funded or launched in the Ballarat region in the past year.Last year, Gekko Systems dominated the CGU Commerce Ballarat Business Excellence Awards. It took out the CGU Business of the Year Award, CGU Marine Innovation and Technology Award and the CGU Workers Compensation Export Award.Staff numbers at Gekko Systems have been kept to a minimum to maintain operations.