State and federal politicians have spent the day trading blame over who is responsible for securing the future of Bell Bay Aluminium, even as the fallout from Liberty Bell Bay’s collapse deepens.
The Rio Tinto-run smelter employs more than 500 workers, but its power supply agreement with Hydro Tasmania expires on December 31 and no new deal is in place.
Felix Ellis, the state Industry Minister, said the government had offered power prices at around a quarter of residential rates and half what mainland smelters pay.
He took aim at the federal government for backing away from plans to include Bell Bay in the $2 billion Green Aluminium Production Credit scheme.
“The Prime Minister promised specifically that on national television, he told the nation and he told the people here in Northern Tasmania that they’d receive the same kind of support that the other aluminium smelters have received around the country,” Ellis said.
Bass MP Jess Teesdale fired back the scheme was designed to help coal-burning smelters shift to renewable energy.
Bell Bay has always run on hydro power.
“The green production credits aren’t due to come in until 2028 and they are designed for other companies to move onto renewable power,” Teesdale said.
She said a power price agreement between Hydro and Rio Tinto needed to be locked in before any federal support could flow.
A dispute also broke out over whether Hydro Tasmania had been willing to engage with Teesdale.
She said she had been reaching out for months with no response.
Hydro rejected that claim, saying Teesdale had been offered briefings and meetings over the past 12 months but had not accepted any invitation.
Hydro chief executive Rachel Watson said the company had pushed its offer as low as it could go without the deal becoming unworkable.
“There remains a gap between the price Hydro Tasmania can responsibly offer and the price Rio Tinto is prepared to pay,” Watson said.
She suggested government support may be needed to bridge the difference, as has happened for mainland smelters.
