Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

The government is assisting aluminium smelters but, first of all, let me say that, in terms of employment loss in any industry, it is always a very sad day when you hear of that news. The government, for its part, with its Jobs and Competitiveness Program, is expected to provide over $3.5 billion of assistance to the aluminium industry over the next three years. Also, to put it in context, aluminium prices peaked at around $3,300 per tonne in 2008 but are under US$2,100, a fall of some 40 per cent over that period. This collapse in aluminium prices has resulted in numerous closures of older, less competitive aluminium smelters around the world.

The government's jobs and competitiveness package, as I said, is about supporting those smelters who are in that circumstance by providing that assistance, which is $3.5 billion, but our assistance arrangements mean that the initial average industry impact of the carbon pricing for aluminium refining is equivalent to less than half a per cent of appreciation in the value of the Australian dollar. Based on public production figures, the jobs and competitiveness package that this government will provide will deliver around $230 million of assistance to places like QAL in the first three years of operation of the carbon price and, importantly, assistance more broadly in Gladstone itself. Senator Brandis talked about the impact there. If you look at Rio Tinto— (Time expired)