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As the prime minister prepares to announce a bailout for a major New South Wales smelter tomorrow, Tasmania is calling for similar federal government support. Rio Tinto's Bell Bay Aluminium smelter in the state's north is seeking deep discounts on its new power deal with Hydro Tasmania and says without financial help it could close. Hydro Tasmania needs to cut its power bills by $60-million a year but with negotiations at an apparent impasse, stakeholders wants the federal government to step in.

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00:01A Tomago aluminium smelter in New South Wales has a familiar problem.
00:06Its owner, Rio Tinto, says it needs a cheaper power price agreement or it will be forced
00:11to consider closing.
00:12In northern Tasmania, Rio's Bell Bay aluminium smelter is also seeking deep discounts on
00:18a new power deal.
00:20The deal, if it's not done by the 31st of December, we're possibly going to be losing
00:25another 550 direct employees, another 1,200 contractors, all leading up to a Christmas
00:31period.
00:32Prime Minister Anthony Albanese is expected to join the New South Wales Premier tomorrow
00:36to announce a bailout for the Tomago smelter.
00:40That will increase the pressure on the federal government to offer similar support to Bell
00:45Bay aluminium.
00:46The only way to guarantee the smelter's future and lock in the workers' jobs is with the federal
00:51government pitching in, it is the only way.
00:55The Tasmanian opposition wants the state government to direct Hydro Tasmania to offer Bell Bay aluminium
01:01cheaper power.
01:03But the government says Hydro can't afford the extra $60 million a year subsidy Rio Tinto
01:09is requesting.
01:10And energy analysts say the generator would be forced to forgo potentially profitable deals
01:15with other customers.
01:16I think it's really the linchpin to retaining the aluminium smelter is really federal support.
01:24Tasmanian Labour says the state government needs to formally request a bailout.
01:29Propose the package of support for consideration by the feds.
01:32There is not a package on the table for the feds to consider.
01:35Only a few kilometres from here at Bell Bay aluminium is the Liberty Bell Bay manganese
01:39smelter, which went into liquidation earlier this month.
01:42The recent example of that closure, and the hundreds of job losses and economic damage
01:47it caused, will be on every stakeholder's mind, as efforts continue to find a new power
01:52price agreement for Bell Bay aluminium.
01:54Thank you very much.
01:55Thank you very much.
01:58Hopefully we will see.
01:59And I will see you next time.
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