As many as 600 workers at an Alcoa plant in the southern state of Victoria will soon learn if they still have jobs, with the federal Labor government saying it expects to finish talks soon with the company about the future of its Point Henry aluminium smelter.
Federal Industry and Innovation Minister Greg Combet said the government wanted to conclude discussions with the company in the “very near future”.
At the same time the conservative Liberal-National opposition leader, Tony Abbott, said any bailout of the smelter would be the first of many such rescue packages as a consequence of Labor’s pollution price regime.
The government has insisted that the smelter’s problems have nothing to do with the carbon price that comes into effect on July 1.
Mr Combet said the long-term viability of the smelter depended on the projected value of the Australian dollar, world aluminium prices and state government electricity subsidies.
“We are obviously extremely concerned about the future of the smelter and the 600 workers.
“Their futures, their jobs, depend upon the viability of the smelter, plus their families plus other businesses and the jobs that are associated with the smelter indirectly in Geelong,” he said in the national capital, Canberra.
“The aluminium industry is under significant pressure.
“Obviously there needs to be a case for long-term viability.”
Mr Abbott said the Point Henry smelter would be the first of many to be bailed out as a consequence of the federal government’s carbon price.
“The best thing you could do for the jobs at Point Henry is scrap the carbon tax because plainly the carbon tax is nothing but a jobs killer when it comes to the energy-intensive industries of Australia,” Mr Abbott said in the Victorian capital, Melbourne.
Mr Combet reiterated that Alcoa’s difficulties had nothing to do with the carbon price.
“They have everything to do with the high value of the Australian dollar and low aluminium prices.”
Victoria’s Regional Cities Minister Denis Napthine said the state government already provided enormous assistance to Alcoa including electricity subsidies.
“We are now providing additional assistance with regard to the carbon tax costs and, of course, with the Alcoa Anglesea (brown coal) power station.
“We are now looking at an additional package in conjunction with the federal government to try and secure the future and the jobs of the people at the Point Henry smelter.”
Dr Napthine said the conservative Liberal-National state government was looking at direct assistance for Alcoa but also to the broader manufacturing supply chain.
State LAbor opposition employment spokesman Tim Pallas welcomed a government Alcoa assistance package.
“It is important both state and federal governments work hand in hand to make sure these jobs are protected,” he told reporters.
“I hope that (Premier) Ted Baillieu isn’t taking the approach, which he seems to do quite regularly, of exporting this issue to the federal government and not lending a hand.”
One Response
Part of the Keating Plan to shut down all manufacturing and Australia just be a Quarry – Trouble is all our leaders since have followed his lead and those in waiting will do likewise.