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Bell Bay aluminium smelter

Bell Bay Aluminium is hailing its new 13-year-power deal with Hydro Tasmania one that helps it retain 500 workers.

The Rio Tinto-owned smelter said cost-saving measures, such as the electricity deal and extending to job cuts, would improve its viability.

Like the neighbouring Temco manganese smelter, Bell Bay Aluminium has been hit by falling metal prices and a high Australian dollar.

Smelter general manager Roy Mostogl said 30 jobs would most likely go in the restructure with those workers offered redeployment within Rio Tinto or redundancy.

Premier Lara Giddings met with workers who expressed relief at the announcement.

Ms Giddings said it was great deal for the company and the nearby George Town community.

She said the deal was not subsidised by consumers who face a new round of electricity price rises from this Sunday.

More in The Examiner tomorrow.

http://www.examiner.com.au/news/local/news/business/new-power-deal-saves-500-jobs-at-smelter/2606507.aspx

• Tasmanian Small Business Council: 110,000 employees in small business forced to leave Tasmania

TENS of thousands of small business employee’s face an uncertain future due to spiralling
power prices, yet one of the world’s largest resources companies secures a 13 year fixed
price power contract with the State Government.

Chairman of the Tasmanian Small Business Council, Geoff Fader said the state’s 32,000 small
businesses we horrified to learn that while it is good enough for the big end of town, when
it came to the engine room of the economy – small business, the sector will continued to be
slugged with power increases. “While Rio secures a 13 year fixed price power package, small
business gets hit with continual power price increases,” Mr Fader said.

“Over the last three years the average corner shop electricity bill has increased from $5,000
per quarter to $8,300 per quarter. Today some 17% of small businesses are on some form of
payment plan with Aurora, just to be able to keep the lights on”

“Frankly it is shameful that the Government has failed to deal with this issue,” Mr Fader
said.

“Yet again, the State Government has demonstrated it is willing to listen to big business and
multinationals when they roll into town with the threat of cutting jobs, yet for small
business it is a different story. Why is one job worth more than any other?” he asked.

Mr Fader said “the 32,000 small businesses in Tasmania employ some 110,000 people, but
the Government is has demonstrated it is out of touch and has failed to listen.

“I look forward to hearing an announcement from the Government of a collective
concessional fixed priced 13 year package for Tasmanian small business,” Mr Fader said.

• HYDRO TAS NEEDS TO EXPLAIN SMELTER POWER DEAL

Kim Booth MP
Greens Energy Spokesperson
Friday, 29 June 2012

The Tasmanian Greens today said that Hydro Tasmania needed to explain whether its deal with Rio Tinto Alcan included an exemption from the carbon price.

Greens Energy spokesperson Kim Booth MP said that any such deal would risk disadvantaging consumers and creating an uneven playing field for business.

“Hydro Tasmania needs to clarify whether this deal was negotiated on full commercial terms, as would be available to any other of their commercial customers,” Mr Booth said.

“It’s essential to have a level playing field, because it would be unfair and wrong for Hydro Tasmania to be out there picking winners and deciding who does and doesn’t have to pay the carbon price.”

“Creating an uneven playing field is anathema for business, and it’s not good for business confidence when some players receive special treatment.”

Mr Booth laughed off suggestions by the Liberal Party that he supported the Liberal Party’s contradictory policy on the carbon price.

“It’s the Liberal Party who need to explain the inconsistency in their policy, which on the one hand talks about passing the carbon price through to consumers and on the other hand promises to scrap it.”

“The Liberals want to reach into the wallets of every Tasmanian and steal away the money they would otherwise be entitled to under the carbon pricing system and which all Tasmanians will be receiving shortly.”