Industry Minister Tim Ayres has faced a gruelling TV grilling as he was repeatedly pressed over the jobs guarantee attached to the $200m taxpayer-backed deal to keep Rio Tinto’s Bell Bay aluminium smelter operating.
The $200m package was announced by the Albanese and Tasmanian governments on Thursday, with the two governments splitting the cost equally.
It is designed to support the smelter for the next five years and secure its future into the 2030s.
Mr Ayres defended the package as a way to secure hundreds of jobs in northern Tasmania after the facility struggled with high electricity costs.
But when asked what Rio Tinto had actually committed to in return for the funding, the minister initially struggled to give a clear answer.
“This is 550 jobs, 1,000 indirect jobs in northern Tasmania,” he told News24 on Friday morning.
“That is important, it’s a smart deal, and it’s shared between the Albanese government and the Tasmanian government on an equal basis to make sure that these facilities continue to operate into the 2030s.”
The Bell Bay smelter directly employs about 550 people and produces around 190,000 tonnes of aluminium each year.
But the minister took a step back when News24 host Laura Jayes repeatedly asked whether Rio Tinto was required to maintain those 550 jobs as part of the deal.
“Well, there is minimum guaranteed employment that goes through the whole package. The minimum, I think it has different numbers in different years,” Mr Ayres said.
Pressed on whether the number would remain at 550, the minister did not provide a figure.
“It’s not going to stay at that 550 level, is it?” Ms Jayes asked.
Mr Ayres responded: “It’ll be close to that.”
The minister was then asked whether the company could “turn around tomorrow and sack anyone” despite receiving the government funding.
“Well, of course they have to manage the business,” he said.
Pressed again on the minimum employment standard, Mr Ayres eventually said the guarantee was around 500 jobs.
“There is a minimum standard, it hovers around the 500 mark, there’s more than 500 people there, those jobs are guaranteed,” he said.
He then shifted the focus to the wider purpose of the deal, arguing the Government was trying to protect Australia’s industrial capability while addressing the high cost of electricity.
Mr Ayres said the company still had to manage the facility, but the Government’s intervention was aimed at keeping production in Australia and securing the electricity supply needed by energy-intensive industries.
The Bell Bay package is the latest in a series of major taxpayer-backed deals involving aluminium and heavy industry.
Less than two months ago, the Commonwealth and NSW governments committed $2.5bn over 10 years to Rio Tinto’s Tomago aluminium plant.
The federal and Queensland governments have also pledged $2bn to support Rio Tinto’s Boyne aluminium smelter.
Since the beginning of 2025, governments have pledged more than $8.1bn to support major industrial operations, according to News24.com.au analysis.
The list includes a $2.4bn package for Whyalla Steelworks, which has since increased by at least another $200m, as well as support for Nyrstar operations, a fertiliser producer and the Liberty Bell Bay smelter, which is now in liquidation.
The Coalition has criticised the government’s approach, arguing taxpayers are effectively subsidising industries that face rising costs under Labor’s energy and emissions policies.
Mr Ayres said the Government’s broader strategy was designed to protect manufacturing and secure critical industrial capability.
“Our interventions over the course of the last 18 months since we were elected have secured tens of thousands of good jobs in regional communities and we are unapologetically pro-industry and pro-manufacturing,” he said.