A FEDERAL Coalition minister has sought to justify his government’s axing of a multi-million dollar ‘energy hub’ proposal for the Latrobe Valley, but Latrobe City Council has expressed disappointment in the change.
The Coalition’s ’emissions reduction fund’ originally allocated about $50 million to ‘clean energy employment hubs’ in the Valley as well as the Hunter and central Queensland regions.
Costings released days prior to the federal election revealed the ‘hub’ proposal had been cut.
On Friday the Coalition sought to defend the move, despite its own stringent opposition to the former Labor Government scrapping a $200 million structural adjustment program, part of which was expected to specifically assist the Valley in its transition to a cleaner economy.
Incoming Environment Minister Greg Hunt said as well as axing the structural adjustment program, the Labor Government had “cut funding for the Climate Change Adaptation Research Facility”, which the new Coalition Government would now invest $9 million in.
While that facility is located on the Gold Coast, Mr Hunt claimed it would “provide significant support for communities looking to develop new energy technologies such as the Latrobe Valley”.
Mr Hunt said the Coalition believed the Renewable Energy Target and Australian Renewable Energy Agency were the most “appropriate mechanisms for supporting investment in renewable energy, rather than the original clean energy employment hubs” which he said had formed “part of the Coalition’s policy at the previous election”.
Acting Latrobe City Council mayor Sharon Gibson said council was disappointed to learn the hubs had been axed.
She said once a new federal cabinet had been appointed council intended to seek meetings with key ministers “to see how we can work together with them to ensure the best possible outcome for the Latrobe Valley”.
“It is all about jobs for us and we are happy to go to Canberra and have those conversations, but of course we would love it if they came here,” Councillor Gibson said.
“We want jobs on the ground here and we really have to have the communication lines open (with the new government) to find out exactly where they are at.”
Federal Member for Gippsland Darren Chester said the Valley’s power generation industry, small businesses and families would “benefit from the Coalition repealing the carbon tax”.
He said the tax had damaged business confidence in the region and its removal offered “greater stability and certainty” to the Valley.
Mr Chester called on the Labor Party to support the removal of the tax, saying it was time they recognised “the mandate of the new government”.
