Unfair: Denis Napthine in Geelong on Wednesday.
MICHELLE HERBISON
FEDERAL Government has “dudded” Victorian manufacturers like Alcoa with inadequate compensation for a carbon tax, according to a Victorian minister.
Denis Napthine called on the Government to make compensation fairer for energy intensive trade-exposed industries.
He said the Government promised 94.5 per cent compensation but would only deliver about 78 per cent.
Mr Napthine said the “unfair system” made more difficult the “very challenging task” of securing the future of Alcoa’s Point Henry aluminium smelter.
Alcoa announced last week it would review the viability of the 49-year-old smelter, threatening the loss of 600 jobs.
Alcoa blamed metal prices, input costs and exchange rates for making the smelter unprofitable.
Mr Napthine said the carbon tax was also putting jobs at risk.
“If you’re going to have a carbon tax with compensation it should apply to all industries in Australia. It’s unfair.”
Mr Napthine met Alcoa management, workers and City of Greater Geelong on Wednesday.
After the meeting he raised with reporters a State Government package of retraining and assistance to Heinz workers after retrenchment.
“I don’t want to go down that track. Our objective is to secure the future of the smelter and 600 jobs but it is a very challenging task indeed,” Mr Napthine said.
Federal Labor Member for Corio Richard Marles called Mr Napthine “completely ignorant”.
“Alcoa is 95 per cent shielded from the carbon price under the compensation arrangements applying to the aluminium sector,” Mr Marles said.
“The workers at Alcoa don’t want to see their elected representatives playing politics with their lives.
“They want to see us rolling up our sleeves and seeing what can be done. We will leave no stone unturned in examining every possibility about constructing a future for Alcoa in Geelong.”
Mr Marles said Alcoa supported the carbon tax and other factors caused the review.
“This has just been in the last couple of years. It was a profitable plant.
“There’s no question Alcoa’s workforce has done a great job and it’s a very efficient smelter.
