[Greens-Media] Reason finally prevails as NSW Treasurer cancels Cobbora coal contract

[John Kaye]

Reason finally prevails as NSW Treasurer cancels Cobbora coal contract

Media release: 1 July 2013

Greens NSW MP John Kaye welcomed the termination of the Cobbora coal contract but warned that further privatisation of the electricity industry would undermine jobs and the environment.

Dr Kaye said: "The Treasurer has at last listened to the Greens, the environment movement and reason on Cobbora.

"The Treasurer's decision to pay out Origin's Cobbora coal contract brings to an end what would have been a massive fossil fuel subsidy. The state's electricity industry would have been even more biased against renewable energy sources.

"After two and half years he has accepted the argument that it is much cheaper to buy out the only private sector contract for coal supply from this completely uneconomic project.

"Instead of using this as an opportunity to consign Cobbora to the history books, Mike Baird has decided to leave private sector development of the mine as an option

"Unfortunately the Treasurer, driven as ever by his obsession with the budget bottom line and assets sales, has created decades of uncertainty for local land owners and tenants.

"The spectre of a privately developed coal mine will hang over the local farming community and reduce their opportunities to productively and sustainably manage their land.

"The carbon beneath the Cobbora farm lands should remain in the ground.

"The gentrader tragedy started with Michael Costa and Eric Roozendaal and their obsession with proving they could privatise assets, regardless of the long term costs.

"Mike Baird was just the last player in the Eraring farce, taking the easy choice to get rid of the residual liabilities.

"The $50 million fire-sale price tag is a measure of how badly Labor's absurd gentrader transaction impaired the asset.

"The massive loss in value and cash earnings in this two-step sale of a key public asset is a salutary lesson in the consequences of both parties' obsession with privatisation.

"As the Eraring mess comes to an end, the O'Farrell government should think again about selling the remaining generators that are not covered by gentrader contracts.

"These power stations produce up to 50 million tonnes of CO2 each year that the Treasurer wants to put into private hands.

"Energy policy in NSW must maintain the important option of being able to close down the existing power stations without compensating the corporate owners and.

"Replacing the state's coal-fired power stations with renewable technologies and energy efficiency measures must remain on the table. Privatisation will create additional costs as the corporate owners will seek compensation for lost profits.

"This is a turning point for the state's economy. The O'Farrell government should not let the community be held ransom by the corporations who will not want to see their profits terminated in the transition to a clean energy future," Dr Kaye said.

For more information:  John Kaye 0407 195 455


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John Kaye
Greens NSW MP

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