Tasmanian Labor has pledged “up to $25 million” to help secure the future of more than 500 jobs at Hobart’s Nyrstar zinc works.
Labor leader Dean Winter announced the rescue package for the struggling site on Wednesday.
Winter said his party would reallocate the state’s previous $20 million commitment to the company and add an extra $5 million if needed.
The election promise comes as negotiations continue between federal and state governments to finalise a support deal for the zinc producer in Hobart and at Port Pirie in South Australia.
“It is clear to me that the cost of not supporting Nyrstar will be greater than the cost of supporting it,” Winter said.
“The flow-on effect of any closure would be devastating for the Tasmanian economy.”
Winter said the commitment is “a fair contribution from Tasmania for a joint package” involving the federal and South Australian governments.
Prime Minister Anthony Albanese said yesterday a deal was close to being finalised and that the federal government has already committed $50 million to keep Nyrstar afloat.
“This isn’t an issue of politics. This is a matter of making sure that we get this done,” Albanese said.
Winter said letting the facility close would be an economic disaster.
“The loss of hundreds of jobs and the flow on impact to contractors and reliant businesses would devastate the local economy as well as jeopardise the viability of other industrials,” he said.
“I will not stand by and let 500 Tasmanian families lose their incomes and the careers they’ve worked to build.”
Premier Jeremy Rockliff said Labor’s “half-cocked” plan was jumping the gun, with the support package currently being worked through “not too far away”.
“What is needed is sensible, collaborative discussion between three governments to ensure that we have the right support needed to save the jobs, not only for the short term, but for the long-term sustainability of the Nyrstar operation,” he said.
