Media Release: Has Government Offered a Repayable Loan to Liberty Bell Bay Administrators to Keep Workers at Work?

Did Minister Over-ride Selection Process to Provide Heritage Role to Liberal Mate?

22 April 2026

Independent Member for Nelson Meg Webb said today the Tasmanian government should disclose whether it has explored the option of offering the administrators of the beleaguered Liberty Bell Bay smelter in the state’s north a repayable loan for the purposes of securing the current workforce until a final decision is made on the smelter’s future.

“Of the current 216 workers at Australia’s only manganese smelter, 176 face either having to take leave without pay or redundancy at the end of this week,” Ms Webb said.

“At the same time we are hearing from the administrators Ernst and Young that the smelter remains a very viable underlying business and they are confident the current interest from potential Australian and international buyers will come to fruition.

“We know that a business with a current workforce attached adds value to that business.

“We need to know whether the Tasmanian government has sought to protect Tasmanian workers, while also ensuring the resale of the smelter reflects its full value, by investigating the option of offering the administrators a repayable loan by which to secure the current workforce until a sale has been finalized.

“This could mean any future sale arrangements would include a repayment schedule of that loan back to the state, in return for the new buyer having a strong skilled workforce in place ready and able to get operations back on track.”

Ms Webb said similar financial repayable loan arrangements were utilized by many Australian State governments during the COVID-19 pandemic period.

“A repayable loan option paid to the administrators could see the Tasmanian government invest in workers, invest in maintaining the full value of this infrastructure asset, while minimizing the financial loss risk to the State.

“At the very least, the Tasmanian government should be putting this option to the Federal government to investigate as well, either as a joint partnership or for the Commonwealth to act alone if Tasmania is unable to offer this option.

“Tasmanians deserve to know whether the Tasmanian government has seriously investigated this option, and if not, why not?”