Reveal Alcoa’s ‘secret’ tax deal, says Kennett

A SECRET energy deal between Alcoa and Federal Government should be revealed to the public, says former premier Jeff Kennett.
He told the Independent that details of the subsidies Alcoa received in compensation for the Gillard Government’s carbon tax should be available to the public.
The former self-appointed Minister for Geelong, a harsh critic of 30-year electricity subsidies struck by Alcoa with Labor’s Cain Government in the mid-1980s, said the excuse of commercial confidentiality for withholding the information from the public was unjustifiable.
“I can’t think of any commercial reason why the amount of those subsidies shouldn’t be made available,” Mr Kennett said.
“I do appreciate the need, under certain circumstances, for confidentiality about government and industry contracts – I’m not opposed in principle – but the difference here is we now have a tax imposed.
“Where that leads to a rebate or commercial arrangements between a government and commercial operators, as opposed to commercial decisions a government makes, for instance, to sell power or, to be current, decide to buy a grand prix, I think those subsidies should be made available.’’
Alcoa won a $42 million bailout in June to keep its Point Henry smelter operating and to maintain the jobs of 600 workers for the next two years.
But Mr Kennett criticised the secret deal to compensate State Government via Alcoa for the growing cost of its ongoing subsidies under the carbon tax, with the company retaining a portion of the compensation.
A lack of obvious competition for Alcoa meant the deal did not have to be kept secret.
Alcoa spokeswoman Nichola Holgate insisted the arrangement was strictly confidential.
“It’s not unusual for commercial arrangements, including between governments and private organisations, to be bound by confidentiality agreements,” she said.
“That is the case in this instance. We are unable to comment beyond this.”
Federal Member for Corio Richard Marles said the deal had nothing to do with the carbon tax.
“I respect Jeff Kennett, notwithstanding the fact he’s president of Hawthorn, but he’s going off half-cocked,” Mr Marles said.
“He should get around the facts before shooting his mouth off.”