Cash cow for Tasrail

MINISTER CONFIRMS TRANSEND USED AS CASH COW FOR TASRAIL
Priority Should Be Lowering Power Prices

The Tasmanian Greens today questioned a decision by the Premier and Energy Minister to approve a $20 million equity transfer from Transend to Tasrail, saying the Minister appeared more focused on upgrading rail than on lowering energy prices.

Greens Energy spokesperson Kim Booth MP said it was not clear why the transfer was made to Tasrail, instead of being used to pay down Hydro Tasmania’s debt, given this was one of the key recommendations of the energy expert panel.

“The Minister has confirmed that mum and dad energy users are effectively paying through their power meter to fix rail infrastructure left to rot by the previous commercial operator,” Mr Booth said.

“Here we have a government business within the energy sector that is actually generating a profit, and it’s being treated as a cash cow for rail.”

“The Greens believe upgrading rail infrastructure is an important priority, but it should not be paid for by mum and dad energy users through their power meters.”

“Poor investment decisions in the Tasmanian energy sector have substantially increased Hydro Tasmania’s debt burden, which has had a flow on to the cost of energy.”

“With about $160 million in equity earmarked in the forward estimates to be transferred out of Transend, the priority should be on lowering energy prices and improving energy efficiency.”