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Energy Minister Groom Should Learn From His Mistakes

Rosalie Woodruff MP

Rosalie Woodruff MP  -  Tuesday, 14 June 2016

Tags: Energy, Energy Crisis, Basslink, Hydro

That the House:—

(1)           Acknowledges that a lack of forward planning by the Minister for Energy, Hon Matthew Groom MP plunged Tasmania into an expensive energy crisis that all Tasmanians will pay for.

(2)           Notes that:—

(a)           Basslink Pty Ltd lost $22 million 2015/16 financial year, and $25 million the preceding year;

(b)           Basslink will forgo approximately $40 million in facility fees from Hydro Tasmania, its only source of income, as a result of the cable outage;

(c)           Basslink is likely to have taken on significant further borrowings to cover the cost of fixing the cable fault; and

(d)           with Basslinks borrowings potentially exceeding the value of its assets, and with those borrowings being secured against the cable itself, there is a real risk that Kepel Holdings may walk away from its subsidiary Basslink.

(3)           Recognises that the Minister for Energy confirmed during Budget Estimates that he has no contingency plan in place should Keppel Holdings, the parent company of Basslink Pty Ltd, abandon Basslink.

(4)           Calls on the Minister for Energy to learn his lesson from the recent energy crisis and to enforce a standard business culture of risk management, including contingencies to protect our energy supply and limit the exposure of Tasmanians to risk from foreseeable eventualities.