Brock tells Port Pirie council to talk to smelter owners before legal fight

Port Pirie MP and former mayor Geoff Brock has urged talks between the council and owners of the town’s smelter, in a bid to secure a “compromise” that would head off court action over a disputed $1.34 million rates bill.

Port Pirie MP and former mayor Geoff Brock has urged talks between the council and owners of the town’s smelter, in a bid to secure a “compromise” that would head off court action over a disputed $1.34 million rates bill.

The Advertiser yesterday revealed Nyrstar has lodged District Court action claiming that a council rate category which targets the business by name, called “industry — other (Nyrstar), ” is “without legal basis”.

Court documents show that the company’s eight properties were hit with a total $1.34 million bill for rates in 2018-19, and state that Nyrstar paid the first quarter’s instalment while planning an objection.

The council has not commented. However, past council business plans list a rates category of “Port Pirie smelters”, which was to raise $1.28 million in rates for 2017.

Nyrstar is seeking for the current rate to be quashed and costs be paid.

Port Pirie MP and ex Mayor Geoff Brock. Picture: Bianca De Marchi

Mr Brock last night said it was critical for the town that the council and its major employer work together.

“I will be working very closely with both parties to get a good resolution,” he said.

“I can understand Nyrstar trying to reduce all of their expenditure as much as can, because they are going through a hard time. We just have to work our way though it.

“I ask both sides to come up with a compromise.”

Nyrstar says it would prefer to revolve the rates matter in discussion with the council rather than in court.

The council was expected to discuss the matter at a meeting scheduled for last night.

Treasurer Rob Lucas yesterday again warned that $291 million in state taxpayers’ money was at risk if Nyrstar were to go under.

“We are desperate to see the redevelopment project succeed because there are a large number of jobs and the future of the Port Pirie economy at stake there,” Mr Lucas said.

“Any decision by anybody … which makes the financial viability of this particular project harder, is something which can’t be supported.”

New reporting in the financial press has raised further concern about the financial position of the smelter’s parent company in Europe, as it works to manage a large debt burden.

The Financial Times reports that “banks risk derailing a rescue” for Nyrstar as they resist a complicated “loss on metal-for-loan deals” as part of a planned restructure.

Business Port Pirie president Mark Hanlon said there was still strong confidence in the future of the plant. “We’re 100 per cent sure it will continue to be here, the only question is who the owners will be,” he said.

“No one is going to spend more than $600 million on a plant they’re going to close. Port Pirie is a resilient town, we’ve been through plenty.”