Contract for closure
Monday, 3 October 2011
Jarrod Whittaker, Latrobe Valley Express
Latrobe Valley power stations interested in closing as part of the Federal Government’s carbon pricing package would not begin being phased out until at least 2016, Energy Minister Martin Ferguson has revealed.
The Federal Government has begun calling for expressions of interest from generators interested in participating in its contract for closure program which aims to remove 2000 megawatts of high emitting capacity by 2020.
As part of the scheme,generators would enter a tendering process to receive government funding to phase out their plant by an agreed date.
Federal Energy Minister Martin Ferguson said the government hoped to have contracts signed by 30 June next year, with closure to take place between 1 July 2016 and 30 June 2020.
“There could be expressions of interest from the Latrobe Valley, but in terms of the contract for closure there is no bottomless pit of taxpayers’ money,” Mr Ferguson said.
“Having a phased transition allows us to manage any transition in the Valley in terms of reskilling.”
Entitlements of workers employed at the power station would be protected as part of the process.
He said calling for expressions of interest now meant the government could provide investment certainty for business, while protecting energy security and managing transition in the Latrobe Valley.
“The Valley understands change is going to occur and they want it managed in a proper way and that’s what the government is committed to doing,” Mr Ferguson said.
“That was the message from the (Latrobe City) council, ... to get on with the job and give us some certainty about the future.”
Local power stations such as Hazelwood, Yallourn and Energy Brix are eligible for closure as part of the scheme.
IPR-GDF Suez and TRUenergy, owners of Hazelwood and Yallourn, respectively, have previously expressed interest in participating in a phased closure scheme.
The Express attempted to contact IPR-GDF Suez and TRUenergy but did not receive a response by time of publication.
Gippsland Trades and Labour Council secretary John Parker said he thought the timeframe proposed by the government was a “little bit optimistic”, but believed it could be achieved if closure occurred over time.
Mr Parker said he welcomed news the scheme would ensure workers’ entitlements were protected, but hoped the scheme went further to help employees who were not interested in redundancies.
He said early retirement packages should be offered to older workers at all Latrobe Valley generators if closure was to occur, to ensure jobs remained available for those interested in staying in the industry.
“I would like to see... early retirement packages (offered) right across the board rather than at an individual power station,” Mr Parker said.
The announcement has drawn fire from the Opposition, with climate action spokesperson Greg Hunt accusing the government of showing “contempt” for “democratic process”.
“The carbon tax legislation has not even passed the parliament and already the government is ploughing ahead with its policy to shut down a power station,which is most likely going to cost jobs in the Latrobe Valley,” Mr Hunt said.
“It shows the contempt that this Labor Government has for the democratic process and is continuing to ignore the concerns of Australian workers about their jobs and the cost of electricity.
“The difference between the Coalition and the ALP is that we want to clean up power stations and will seek the support of the people at the next election but they want to close them down, wouldn’t face the people at the last.”
Mr Hunt and Opposition treasury spokesperson Joe Hockey have previously indicated the Coalition would negotiate the closure of Latrobe Valley power stations such as Hazelwood and replace them with gas.
Environment Victoria campaigns director Mark Wakeham welcomed the announcement, but said he believed the closure could be moved forward.
“There would appear to be room to be turning off turbines in the next couple of years,” Mr Wakeham said.
