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<\/p>\nWorkers at Tasmania’s only manganese smelter will have their wages paid for another two weeks in a deal struck between the state and federal governments.<\/p>\n
The $1.6 million\u00a0deal for the Liberty Bell Bay workers has been presented to the smelter’s administrators EY Parthenon, days before the previous three-week pay extension was due to run out.<\/p>\n
On Friday, EY Parthenon partner Morgan Kelly said the deal would help the troubled smelter as a new buyer was sought.<\/p>\n
“The announcement of further funding from the Commonwealth and Tasmanian government will support the immediate retention of employees while we continue the sales process,” Mr Kelly said.<\/p>\n
“We’d like to particularly acknowledge this workforce, who have shown an incredible resilience and commitment during a very difficult period.”<\/p>\n
The Liberty Bell Bay smelter is under administration. (ABC News: Mitchell Woolnough)<\/p>\n
Last month, the voluntary administration period for the northern Tasmanian smelter was extended until July 29.<\/p>\n
At the same time, the state and federal governments agreed to pay the workers’ wages for three weeks until May 19, at a cost to the taxpayer of $3 million, while administrators worked to secure a new owner.<\/p>\n
At the time, administrators EY said several prospective buyers were circling, but further government support was likely to be needed as a sale could take months to finalise.<\/p>\n
Last week, the window for non-binding indicative offers closed as the union representing workers travelled to Canberra seeking further payroll support.<\/p>\n
Further fortnight of funding secured<\/p>\n
The proposed 50:50 funding package between the state and federal government will allow the smelter to continue operations as a buyer is sought.<\/p>\n
“The loan will help maintain the existing workforce and specialist industrial capability while administrators continue discussions with interested parties regarding the future of the facility,” a joint government statement said.<\/p>\n
“The Australian and Tasmanian governments are giving administrators every chance for a sale to occur.”<\/p>\n
Federal Industry Minister Tim Ayres said it has been a difficult time for the broader Bell Bay community.<\/p>\n
“This support backs the workers at Liberty Bell Bay during the final stages of the sales process, who have been let down by the facility’s previous owner.”<\/p>\n
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Industry Minister Tim Ayers (right) made the announcement in conjunction with Tasmanian Premier Jeremy Rockliff. (ABC News: Kelsey Reid)<\/p>\n
Tasmanian Industry Minister Felix Ellis said the governments will be “closely examining” potential buyers.<\/p>\n
“The site needs a buyer willing and able to invest in the future of the plant and its people,” Mr Ellis said.Union seeks longer-term commitment<\/p>\n
Today, Tasmanian AWU branch secretary Robert Flanagan welcomed the funding deal for this pay period and the next but said the workforce anxieties remain.<\/p>\n
“We’re hoping that a preferred purchaser will be identified soon, and there’ll be further discussions with government about what support it’s able to provide,” he said.<\/p>\n
“What we know is that the workforce is critical if there’s going to be an ongoing operation at Liberty Bell Bay.”<\/p>\n
Mr Flanagan said that taxpayers wondering why they were paying the workforce’s wages needed to be aware of what the smelter contributed.<\/p>\n
“When the smelter is running it contributes $340 million to the Tasmanian economy,” he said.<\/p>\n
“That’s 1.2 per cent of gross state product.”<\/p>\n