Financial assistance for Tasmania's major industrials will be on the table if gas negotiations continue to break down and result in massive price hikes, the Energy Minister says.
The contract for the transportation of gas across Bass Strait expires at the end of the year but discussions between Hydro Tasmania and the pipe's owners, Tasmanian Gas Pipeline (TGP), have broken down.
TGP chief executive Lindsay Ward hit out at Hydro, accusing it of being "disinterested" in negotiating and threatened to put up costs by 95 per cent if they cannot agree.
There are fears that could lead to mass job losses at the state's major industrials such as Bell Bay Aluminium and Nyrstar, which employ thousands of Tasmanians and are the biggest users of gas aside from the Tamar Valley Power Station.
State Energy Minister Matthew Groom said price hikes of 95 per cent would be unacceptable, and the Government would intervene.
"If we needed to provide financial assistance to a major user to avoid major job losses in the state, we would do that," he said.
He said TGP's current contract offer was not reasonable.
"At the moment, the deal that presents, from all advice I've received, is not in the best interests of the state," he said.
"We're talking about tens of millions of dollars here.
"It is important that we get a fair outcome. We can't just write a blank check to a monopoly provider."
TGP argued it had put a reasonable offer on the table, that would bring down costs for the Tamar Valley Power Station by 45 per cent.
Opposition spokesman Scott Bacon blamed Mr Groom for the breakdown in commercial negotiations.
"No one thinks a 95 per cent increase in gas prices is going to help our major industrials," he said.
"What this shows is Matthew Groom has had three years to sort out this issue, he's done nothing to put the minds of the major industrials at rest.
"It's just not good enough."
