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Groom Silent as Basslink Finances Fail

19 Oct 2016

Rosalie Woodruff MP | Greens Energy spokesperson

Basslink's third quarter financial report has painted an alarming picture of the state of their finances.  There's a real risk Basslink may go into liquidation, and the costs of the energy crisis to Tasmanians becomes even more unknown.

At the moment, all that we do know is that Basslink are in default to their creditors, and Hydro Tasmania have not paid them a facility fee since September.

Minister for Energy, Matthew Groom, needs to reassure Tasmanians their energy supply will remain secure.  They also need to know they won't be left with the costs of the ongoing Basslink saga.

At Budget Estimates, the Greens asked the Energy Minister whether contingencies were in place to manage the risk of parent company, Keppel International, walking away from Basslink, given its mounting financial losses.  He had no response, except to point a finger at the previous government.

We hope Minister Groom will  take the time to reassure Tasmanians now.  Hydro Tasmania is a Government Business that is owned by the people of Tasmania, and any costs incurred in that business will ultimately be worn by them.

The enormous expense of the energy crisis will already be incurred by Tasmanians through increased power bills, or redirected State funds.  That was a direct result of the Liberals’ failure to have contingencies in place, and we could face yet another hit.

The Hodgman Government has continued to put all dealings with Basslink are the responsibility of Hydro.  Under Minister Groom, it seems everything in the Energy portfolio is someone else’s responsibility, and fault.