The Labor Government must explain whether the Musselroe windfarm project has stalled and will now not be built.
I uunderstand that the $400M project is unable to reach financial close as a result of the financial model no longer stacking up due to the fall in the value of renewable energy certificates.
The Government must explain whether this is the case and if so what they intend to do to get this project back on track. I suspect that tens of millions of dollars have already been spent on the project and taxpayers deserve to know when there will be a return on this investment if at all.
Northern Tasmanian firms deserve to know whether or not this project will be built, especially in light of further jobs being lost in vegetable manufacturing in the North West and the inevitable flow on effects throughout the entire supply chain. Renewable energy should be an industry of note in Tasmania and if this key project is dead in the water the Government need to explain why this has happened.
During the last 11 years under the Labor Government Tasmanians have been paying higher and higher charges for their electricity and now it appears that this major wind farm project may not proceed whilst at the same time householders and small business people will not receive the competition the Government promised to keep prices in check and improve service standards in July of 2010.
The Tasmanian energy regulator has recommended that retail competition not be extended to more than 270,000 households and small businesses in July of next year when originally planned for meaning that the vast majority of customers will not receive any benefits in respect of completion regarding prices and service.
As the competition the Labor Government promised 270,000 Tasmanians is not going to materialise, and now $400M of investment in renewable wind generation looks set to fall over as well, there is no other conclusion to be drawn than after 11 long years of Labor their energy reform strategy has failed and all Tasmanians will have to show for these 11 years is higher prices.
Peter Gutwein MP Shadow Minister for Energy
