A fiery debate over the collapse of Liberty Bell Bay erupted in Tasmania’s parliament today, with opposition leader Josh Willie accusing Energy Minister Nick Duigan of giving workers false hope before the smelter shut its doors.
Willie told parliament Duigan had personally welcomed the smelter’s power agreement in February last year, telling Tasmanians it had secured the site’s future for 10 years.
“You made them sign a power deal under duress with a 30% increase barely 18 months later,” he said.
“How did you get it so badly wrong?”
Willie also questioned what checks the government carried out on Sanjeev Gupta and GFG Alliance before encouraging them to acquire the site.
“When the government actively recruits an investor and encourages them to take responsibility for hundreds of Tasmanian workers and their families, the government has a responsibility to make sure that investor is credible,” he said.
Duigan hit back, blaming Gupta for stripping “very close to $200 million out of the business” and calling that the real reason for the collapse.
He rejected any suggestion energy policy was at fault, saying the power contract was struck between Liberty and Aurora Energy “without input from government on commercial terms.”
Duigan said potential new operators were now seeking to take over that same contract as a condition of restarting the smelter, describing it as “favourable to the market at around $120 million.”
Attention then turned to Bell Bay Aluminium, where more than 550 jobs are at risk as Rio Tinto negotiates a new long-term power deal with Hydro Tasmania where the current deal expires on December 31st 2026.
Duigan declined to say how much more Hydro is asking Bell Bay Aluminium to pay, telling parliament only that “there is a gap” and that he was focused on making it “as small as it can possibly be.” He put that gap at around $60 million a year in parliament yesterday.
He said the federal government needed to step in, pointing to the Commonwealth spending close to $1 billion at the Boyne smelter in Queensland and hundreds of millions at Tomago in New South Wales.
“Tasmania can’t and shouldn’t be expected to do this alone,” he said.
Premier Jeremy Rockliff backed that call, saying he had sat down with Rio Tinto and outlined a structured way forward.
“The only way to guarantee the smelter’s future and lock in the workers’ jobs is with the federal government pitching in,” Rockliff said.
The exchanges grew heated when Duigan accused the opposition of being “apologists for Mr Gupta.”
Deputy opposition leader Janie Finlay demanded he withdraw his comment, saying she was “deeply offended.”
Speaker Jacquie Petrusma ordered the withdrawal and warned members they faced suspension.
“I remind all members that you can be suspended very fast from this chamber, so my patience after yesterday has got very thin,” she said.
