Richard Dowling (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

A couple of weeks ago I stood with my colleagues from the Tasmanian and Commonwealth governments to announce a $135 million support package for Nyrstar smelters in Hobart and Port Pirie. Let me be clear, this was not charity or a handout to a failing business; this was an investment in our people, in our sovereign capability and in the regions that built this nation.

Make no mistake, the scale of what was at risk was enormous. In Port Pirie, the lead smelter is the backbone of the town. More than 850 South Australians are directly employed there, and hundreds more rely on it through contracting and supply work. In my hometown of Hobart, the zinc refinery employs over 550 Tasmanians. If you add in suppliers, contractors and small businesses, you reach more than 6½ thousand jobs tied to these operations nationwide. If either smelter closed, it would not just have been a hit to the economy; it would have been a catastrophe for those towns—families broken, businesses shuttered, communities hollowed out. That is why we acted, because walking away was never an option.

In this partnership, the federal government will contribute $57.5 million, the South Australian government will contribute $55 million and the Tasmanian government will contribute $22.5 million. Each level of government is stepping up, each recognising the national importance of these facilities. What will it deliver? First, it will bring forward critical maintenance; infrastructure upgrades to furnaces, wharves and safety systems; modernisation to reduce emissions and improve efficiency; and, most importantly, feasibility studies and pilot projects in critical minerals. This is the key. It's not about clinging to the past; it's about creating a future.

At Port Pirie, we'll fund a pilot plant for antimony, a mineral used in defence, electronics and semiconductors. Right now, China dominates its supply. With this package, we change that. We'll also explore bismuth, another mineral with growing demand. In Hobart, we'll investigate refining germanium and indium. Without those, you don't get smartphones, you don't get satellites and you don't get fibre-optic cables. They are essential to the modern world. Think about that; a refinery in Hobart could soon be part of the global supply chains for semiconductors and advanced manufacturing. That's the scale of the opportunity before us.

This is a future made in Australia in practice. The strategy is built on three pillars: sovereign capability, decarbonisation and clean energy leadership, and regional jobs and renewal. In relation to sovereign capability, this package keeps processing onshore—so we stop sending raw ores offshore and buying back the value-added products. We build resilience against shocks. In relation to decarbonisation, Hobart's zinc refinery already underpins renewable energy industries. Zinc is critical to solar, wind and batteries. By adding germanium and indium, we go further; we link Tasmania directly to the clean energy economy around the world. In relation to regional jobs, this is not about centralising everything in Sydney or Melbourne; it's about ensuring that the regions are part of the new industrial story. And I say this: when critics call this a bailout, they miss the point.

This is a transitionary support tied to transformation. It's conditional, it's strategic, and it is exactly what the future made in Australia is all about.

I want to speak to intergenerational equity because this is not just about today's jobs; it's about tomorrow's opportunities. Protecting today and building tomorrow—that's the balance. By keeping these smelters open, we protect thousands of workers right now, but, by investing in critical minerals, we create industries for the next generation. Regional resilience—Tasmania has one of the oldest populations in Australia. Too many young people leave because they can't find high skilled work. With this package, Hobart can offer careers in advanced refining and in global tech supply chains. That keeps young Tasmanians at home, and it draws others back. Tasmania is rich in renewable energy, but fairness means that Tasmanians must benefit directly, not just investors and offshore corporations. By anchoring processing locally, future generations inherit both clean power and the jobs that flow from it. So, yes, this is an intergenerational package—one that protects today and invests in tomorrow.

Let me add another point around productivity. This package is not just about saving jobs; it's about lifting productivity in Port Pirie, in Hobart and across the nation. In Tasmania, the numbers tell the story. Our gross state product per capita is around $70,000—just three-quarters of the national average. Our labour force participation rate sits at 61 per cent—the lowest in Australia and well below the national rate of 67 per cent. If we matched the mainland average, we would see more than 11,000 jobs and billions of dollars added to the state economy. We work fewer hours too—just 32 hours a week on average. That's nearly five hours less than in New South Wales or Queensland. Our underemployment rate is the highest in the nation at 7.7 per cent. On top of that, we have one of the oldest populations in the country, meaning fewer younger people in the workforce and more pressures on our services. Without productivity growth, that gap will only widen.

These are the structural weaknesses that this package begins to address. By upgrading the furnaces at the Hobart zinc refinery, we lift efficiency—more output from the same input. That's productivity in action. Through diversification by moving into germanium and indium, we increase the value added per worker. Each shift becomes more valuable to the national economy. On skills: these upgrades will require metallurgists, engineers, technicians. Training and retaining those skills build a more adaptable and more productive workforce. On supply chain uplift: hundreds of Tasmanian contractors will modernise alongside the refinery. They too will become more efficient and more competitive. Make no mistake, this is not about keeping the smelter alive; it's about making it stronger, smarter and more productive. When Tasmanian industry becomes more productive, Tasmanian workers share the gains through higher wages and better jobs.

Let's deal directly with some of the critics that say, 'This is corporate welfare—pouring money down a smelter stack.' Wrong—this is a conditional investment tied to diversification, tied to pilot projects, tied to sovereign capability. Others say: 'Why support heavy industry at all? Why not just let it fail?' If we let these smelters go, we let our regions go, we let our workers go, and we let our sovereignty go. That is the price Australia cannot afford.

Swift action around this matters. Let me give a concrete example. Without this package, Port Pirie would have been forced to shut down furnaces within weeks. Hundreds of workers would have been sent home, families would have been left without income, and communities would have plunged into crisis. Instead, because governments could act swiftly and because agencies carry the burden, maintenance was funded, furnaces kept running and families kept working. That is the difference between theory and practice.

The Newstart package is not perfect. It will not solve every problem facing regional industry. It will not undo decades of neglect overnight. But it matters. It's a start, and it is a signal. It tells workers in Port Pirie and Hobart, 'You matter.' It tells our children, 'We are investing in your future.' It tells the world, 'Australia will not give up its industrial capacity without a fight.' That is the heart of Future Made in Australia.