Govt told to be more 'proactive' over smelter

The Government's being told be more proactive when it comes to the row between state owned Meridian Energy and the owners of the Tiwai Point aluminium smelter.

Aluminium prices are at a 25-year low and smelter owners Rio Tinto have already announced 100 job layoffs.

Around 900 people directly rely on the smelter which pumps half a billion dollars into the local economy every year.

Invercargill mayor Tim Shadbolt's urging the Government not to forget the deep south.

"It's ridiculous that a third of our population live in one city and the only thing that keeps people living down here, or one of the major things, is the smelter."

Mr Shadbolt's says the indication that 100 jobs could go is not the end of it.

"It'd also have a major impact on our port of course because shipping the bauxite in and the aluminium ingots out is a big part of the port's economy, which is majority owned by the regional council here."

And people in Southland want to know what's going on with the Tiwai Point aluminium smelter.

Venture Southland CEO Jason Casson says they're trying to get clarification over the rumours over the smelter's future.

He says it's very unsettling, and people want answers.

"Put a call into Meridian Energy to try to get some feedback or a statement from Meridian Energy to just give us a ... stance with regards to their situation with regards to the contract negotiations."

Mr Casson says if the smelter was to close, the impact would be huge.

Photo: supplied