Committee for Gippsland CEO Mary Aldred says that transitioning to a low carbon economy does not mean having to shut down power stations.
The Committee for Gippsland is comprised of small to medium businesses, large companies, community organisations and education providers from across the Gippsland region. It represents a united voice for Gippsland to government and seeks to maximise opportunities for economic and social development in the region.
In a scathing view of the political landscape surrounding the imminent closure of Hazelwood power station, Ms. Aldred said that the long-term actions of green activists have completely taken the focus off future upgrades of the power stations and the possibilities presented by new technology.
“There needs to be a focus on cleaning up the power stations, not shutting them down”, said Ms. Aldred.
“We need to move away from carbon, but not coal”.
Ms. Aldred stated that without carbon capture technology, it will be 135% more costly to meet the IPCC and Paris agreed targets for carbon reduction.
“Decreased emissions and a lower carbon economy can also come from new lighting and electric motor efficiencies and usage patterns, as well as cleaner energy power stations”, said Ms. Aldred.
“Governments must encourage an environment for future planning and investment and that has not happened”.
Ms. Aldred said that government regulatory bodies have been making it an increasingly harsh investment environment for Latrobe Valley power stations, which have ageing infrastructures, changes in the electricity market to contend with, and the impetus of climate policies.
In a statement released in November, Engie, Hazelwood’s owner, said the power station has been operating in difficult market conditions, with lower electricity prices and a surplus of electricity supply in Victoria.
Ms. Aldred said that Gippsland’s competitive advantage lies in its ability to generate cheap electricity and that capacity is now being eroded. Perversely, the closing of Hazelwood will ensure the economic viability of the remaining power stations through increased electricity prices. However, that has a severe economic impact on households and on business competitiveness.
“Gippsland has had a double whammy”, said Ms. Aldred.
“Firstly, the region has had to endure a severe downturn in dairying returns and now the closure of Hazelwood. A place like Mirboo North, for example, will feel the effects of both, badly”, she said.
Ms. Aldred gave the example of a single news agent in Morwell that supplies the Hazelwood power station with 2000 newspapers plus miscellaneous items like cigarettes and magazines. A myriad of businesses that will be directly hit by the station’s closure; school uniform shops, cafes supplying workers with a coffee and sandwich on their way to work, car dealers, restaurants, fabrication factories, will all be impacted.
“Gippsland needs a diversity of skills and a diversity of businesses, for they are the backbone of Gippsland”, said Ms. Aldred.
Ms. Aldred, who grew up in Gippsland and lives in Pakenham, said we must not talk down the region.
“There’s far too little respect or understanding about the history, value and future opportunity that exists in Gippsland. Mostly, from people who don’t fully realise how much they actually depend on this region for their power, food, gas and water. I argue this issue has become such an ideologically driven agenda for some, who think carbon transitioning is no more complicated than flicking a hypothetical off-switch to a power station and watching it come to a whirring stop.
“Carbon transitioning is a complex process requiring vision, investment and long-term policy and business planning from government, industry and the community. They must all work in concert”.
“We have a diverse, world beating future ahead of us if we face our challenges head on, “she said.
Ms. Aldred said that at present coal royalties paid by one power station are around $18M annually. With the increase, this figure will jump to around $54M annually.
The company also pays a bond to the state government of $12M.
Last April, Victorian Premier Daniel Andrews announced a three-fold increase in coal royalties, raising $252 million over the forward estimates. Power company royalty payments, charged per gigajoule of energy, would therefore jump from 7.6 cents to 22.8 cents.
Premier Daniel Andrews has announced he will spend $226 M to create jobs and grow local businesses, as well as $42M in assistance for workers and the region.
