(Transcript from World News Radio)
Australia's ailing manufacturing industry has been dealt another blow, with Alcoa announcing it will permanently close two of its operations in Victoria and New South Wales.
The company will close its Point Henry smelter and rolling mill in Geelong, along with a second rolling mill in New South Wales.
It will mean the loss of about 1000 jobs, mostly in Victoria.
The federal government says it's another example of why bailouts are not the answer for struggling businesses.
Amanda Cavill reports.
The Alcoa announcement follows a tumultuous couple of months for Australian manufacturing, with all of the country's car makers announcing they will stop production in Australia by 2017.
The Alcoa announcement will also be another blow to the regional city of Geelong which has has recently been hit hard by job losses at workplaces such as Ford, Target, and Qantas.
Alcoa says it's not pulling out of Australia completely, and will continue to operate an aluminium smelter at Portland in Victoria, along with bauxite mining and alumina refining operations in Western Australia.
Alcoa says it will seek a buyer for the Anglesea coal mine and power station, which currently provides power to the Point Henry smelter.
Alcoa Managing Director Alan Cransberg says despite a $40-million federal government grant two years ago, the operations being closed are not commercially viable.
Mr Cransberg says Alcoa doesn't believe additional government funding would help.
"Yeah, we went to the government in February 2012 because we wanted to see if we could get some support, and we got some excellent support from the government to get through the last two years, When we look at the money we have lost in the last three years and we look at our forecast, I won't share that number but it's a considerable amount and we look at our forecast for the next three years then I can't put a position to the government that says hey this support will make us sustainable in the longer term."
Federal Treasurer Joe Hockey says the closure of Alcoa's Point Henry smelter is disappointing but predictable.
Mr Hockey says the $40-million the previous Labor government gave Alcoa is wasted taxpayers' money.
"Because in 2012 Alcoa did an analysis that said the plant was not financially viable the Labor government gave them 40 million dollars and in two years they closed, two years later. The fact they they closed two years after receiving a 40 million dollar government grant just illustrates the fact that you have got to be very careful with taxpayers' money. And now we have all got to work together to find new business opportunities for the workers and contractors and everyone else who's been involved in Point Henry."
National secretary of the Australian Workers Union, Paul Howse, also says the closure was inevitable with the price of aluminium plunging on global markets.
He says the main task ahead is to ensure that there is a national plan to stimulate the economy, provide jobs and help workers affected by the growing number of plant closures around the country.
"When the GFC (Global Financial Crisis) hit in May 2008 the price of aluminium was over $3000 a tonne. The price of aluminium today is around $1700 a tonne on the London Metal Exchange in US dollars. Today is not about blame, today is not about pointing fingers. Today is about providing certainty and a path for those communities in Geelong and Western Sydney and for the workers who have been hit for six by this announcement."
Mr Hockey says the carbon tax has added to the cost of production and the Alcoa announcement gives further weight to the argument that Labor should support the tax's repeal.
Federal Opposition Leader Bill Shorten says the Abbott Government must provide adjustment packages for the affected regions and workers.
He says a jobs plan is also needed for the tens-of-thousands of car industry workers and others who are losing their jobs.
