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Communities hit by looming Hazelwood closure to receive economic package

Friday, 4 Nov 2016 04:41:16

The Victorian Government says financial support will be made available for the workers. (AAP: Julian Smith)

The Victorian Government is establishing a special "economic growth zone" funded by an additional $224 million to help the Latrobe Valley in the wake of the announcement of the closure of the Hazelwood power station.

The brown coal plant will be shut at the end of March next year putting hundreds of people out of work after the French owner, ENGIE, said the 1,600 megawatt power station was deemed no longer economically viable.

About 250 workers would remain at the power station between 2017 and 2023 to manage the site's rehabilitation.

Victorian Treasurer Tim Pallas said the funding for the new growth zone was part of a $266 million package to create jobs and grow local businesses.

Tax breaks, infrastructure funding

The State Government had already announced $42 million in assistance for workers and the region, that will go towards the creation of a Latrobe Valley Authority and specific job help for workers.

"The new elements of this package include such things as $174 million for community infrastructure and investment fund," Mr Pallas said.

"This will target new local projects which could include road and rail upgrades, school upgrades, health facilities."

What will happen when the Hazelwood power plant shuts down?


The closure will have wide-ranging consequences for Victoria and beyond

For example, a company that wanted to purchase a $500,000 property to move to the Latrobe Valley would get a $25,000 stamp duty concession.

"It will help the community grow but it will also, in the short term, create more local jobs," he said.

"This is about making business that much easier to establish and grow in the Latrobe Valley as well as building the community infrastructure that the Latrobe Valley needs.

"It's about generating jobs and economic opportunity.

"Our commitment is not only to the workforce and their transition but to the community in this difficult time."

The economic growth zone will cover three local government areas including the Latrobe City Council, the Wellington Shire and the Baw Baw Shire and the eligibility for funding will be assessed by the Latrobe Valley Authority, Mr Pallas said.

Concerns about energy supply

Victoria supplies 14 per cent of South Australia's energy, 6 per cent of New South Wales' supply and 6 per cent of Tasmania's energy, sparking fears the closure of Hazelwood would force prices to rise.

Energy Minister Josh Frydenberg, speaking on ABC Radio's AM program, reiterated that the closure of Hazelwood was bad news for the Australian energy market.

He said any time you take cheap brown-coal-fired energy out of the equation "you will invite more instability into the system" and any push for the closure of more dirty power plants would not be a good outcome.

"We can't afford the closure of another Hazelwood in the near term because already I'm being told by the Australian Energy Market Operator (AEMO) that supply is very tight," he said.

But Victorian Premier Daniel Andrews refuted those concerns saying government modelling showed only a 4 per cent increase.

"That's about 85 cent as week," he said.

"Josh Frydenberg perhaps should have mentioned that the Australian Energy Market Operator, the independent umpire, if you like, have been very clear that there is sufficient power within the Australian grid to deal with the decision that the French company ENGIE made yesterday."

AustraliaPlus


 

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