Bell bay aluminium in Tasmania’s north has warned its workers its future viability is under threat. After failing to reach a new power supply deal with hydro Tasmania. The Tasmanian government is calling on the commonwealth to financially support the Rio Tinto-owned smelter. But the federal industry minister says the impasse is the state's fault.
00:00More than 500 people work at the Bell Bay aluminium smelter in Tasmania's north.
00:07Now they've been told their jobs are at risk because it hasn't been able to negotiate a new power agreement with Hydro Tasmania.
00:15The state government wants the Commonwealth to shore up the smelter by giving it renewable energy subsidies.
00:21We've got a green aluminium smelter here in Tasmania. They've got a green aluminium production credit scheme. Let's bring the two together.
00:29But Federal Industry Minister Tim Ayres has blamed the Tasmanian government, which owns Hydro, a view shared by the Tasmanian opposition.
00:38Of course the state government are putting pressure on the federal government because they haven't done their job.
00:42If the Tasmanian ministers did their job, we wouldn't be in this situation.
00:45Bell Bay aluminium would have a power contract. Their workers and their families would have certainty going forward.
00:50Hydro Tasmania says it will continue negotiations with Bell Bay aluminium in good faith, but it can't offer an uncommercial contract.
00:58If we want to pull that lever any harder, we take that contract below the cost of production. That then has a flow on effect to the Tasmanian taxpayer.
01:07The closure of Bell Bay aluminium would be felt beyond the company itself.
01:11If we don't have these jobs for these people, local economy will suffer, not just at Bell Bay and immediate surrounds, but across the north of Tasmania.
01:19Bell Bay aluminium isn't the only one of Tasmania's major industrials raising concerns over its financial sustainability.
01:28The Liberty Bell Bay manganese smelter recently got a $20 million loan from the state government to buy a shipment of ore.
01:35Near Star's Hobart zinc smelter got a multi-million dollar federal and state government bailout in August, while the Boya paper mill is negotiating with Aurora Energy over energy costs.
Be the first to comment