PM Transcripts

FOR PIESS: PM No. 31/ 1959.
EXPANSION OF BELL BAY ALUMINIUM PLANT.
Joint Statement by. the Prime Mnister and the Premier of Tasmania,
In a joint statement today, the Prime Minister and the
Premier of Tasmania, Mr. Reece, announced agreement upon a detailed
plan to increase the capacity of the Bell Bay aluminium works from
12,000 tons to 16,000 tons of aluninium ingots a year, at a cost
of approximately œ 3 million.
The plan for expansion was recomrnended to the two
Governments by the Australian Aluminium Production Commission.
Up till now the Cor. uonwealth has found œ 9.7 million and
the Tasmanian Government œ 1.5 million for the establishment of the
Commission's undertaking.
The Commonwealth contribution to the expansion programme
is that it will continue for the time being to guarantee the
existing bank overdraft of the Commission of œ 300,000. It further
agreo-as has the Tasmanian Government also, to temporarily waive
any claim on the Co:-iission for payments on account of profits,
interest or capital. It is anticipated that this will enable the
Commission to provide up to œ 650,000 from its own resources towards
the cost of the expansion programme. In addition the Commission
may be able to provide the further working capital that will be
necessary. The Tasmanian contribution will be to underwrite the total
cost of the expansion programme. It is estimated that this nay
involve the provision of œ 2 million. Even when the enlargement to
16,000 tons is completed, Bell Bay will still be able to supply
only about half the Australian demand, leaving the remainder to
be met by imports.
The two Governments have therefore agreed to continue the
negotiations to attract private capital to Bell Bay so that its
manufacturing capacity can be increased further. It is not
proposed to make any statements concerning these negotiations
until finality is reached thereon.
The new agreement should enable construction to connence
almost immediately.
CANBERRA, A. C. T.
1st September, 1959.