$2.5b Tomago Aluminium bailout saves jobs but hits taxpayers
The federal opposition has described the deal as a net zero "failure", while the Greens want the government to own a stake in the smelter.
A $2.5 billion taxpayer-funded deal aimed at saving Tomago Aluminium smelter has been hailed as a lifeline for Australia's aluminium industry and the workers at the smelter, but critics argue the deal raises questions about the wisdom of taxpayers' expenditure. The federal government, along with New South Wales Premier Chris Minns, has announced the funding deal, which will keep the smelter operational for at least another decade.
The government will cover half of the power costs, while smelter owner Rio Tinto will invest $1.1 billion, including funds for further decarbonisation efforts. Prime Minister Anthony Albanese and the Premier visited the Hunter region to announce the deal, which aims to secure skilled manufacturing jobs in the region. However, the Prime Minister insists the deal is in the nation's best interests and will generate more renewable energy for NSW.
The deal has drawn criticism from the opposition and the Greens, who question whether it is fair to burden taxpayers with the costs of a profitable private company.
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