Prime Minister Julia Gillard is meeting with workers from the struggling Victorian aluminium manufacturer Alcoa in Canberra.
The company announced last week it would review the viability of its smelter in Geelong because low metal prices, a high Australian dollar and input costs have made it unprofitable.
Employees will have to wait until the end of June, when the review is completed, to find out whether they will keep their jobs.
Opposition climate change spokesman Greg Hunt told reporters in Canberra on Monday the government could do one thing to help Alcoa.
“Drop the carbon tax,” he said.
“The aluminum sector is in deep distress and the carbon tax is the worst possible thing at the worst possible time.”
The company is not including the carbon tax in its review.
Mr Hunt said this was a “matter for the company.”
Greens MP Adam Bandt said the best treatment for Alcoa and the manufacturing industry would be to pass an expanded mining tax and establish a sovereign wealth fund.
“We could use that wealth to help other sectors of the economy that are doing it tough,” he told reporters.
Mr Bandt said the company had received $6 billion of public subsidies over several decades in the form of cheap electricity.
“Alcoa needs to do the right thing … use some of that to keep their operations going, not turn on their workers when times get tough,” he said.
Ms Gillard is meeting the Alcoa workers at Parliament House.
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