Australia’s Prime Minister revs up his attack on the wind farm industry
Abbott escalates war on wind, The Age, 11 July 115 Adam Gartrell EXCLUSIVE: Tony Abbott has been warned he is putting international investment at risk after ordering the $10 billion Clean Energy Finance Corporation not to finance new wind power projects. Tony Abbott has dramatically escalated his war on wind power, creating a new cabinet split and provoking a warning he is putting international investment at risk.
Fairfax Media can reveal the government has ordered the $10 billion Clean Energy Finance Corporation not to make any new investments in wind power projects. Treasurer Joe Hockey and Finance Minister Mathias Cormann have issued the so-called green bank with a directive to change its investment mandate, prohibiting new wind funding. It’s understood the directive was issued without the approval or knowledge of Environment Minister Greg Hunt, angering the minister. The decision is another blow for the multibillion-dollar wind industry, which has just started to recover from the uncertainty created by the government’s Renewable Energy Target review. Analysts say $8.7 billion is expected to be invested in wind power in the next five years, while the corporation has invested about $300 million in wind projects to date.
And international investors are warning the government’s move sends a bad message about how safe it is to do business in Australia.
The directive is just the latest salvo in the government’s attacks on the wind industry.
Mr Hockey started the campaign when he told Sydney radio shock jock Alan Jones he found wind farms “utterly offensive”. Prime Minister Abbott reignited the debate last month, telling Jones he finds turbines “visually awful”. He said he wanted to reduce the growth rate of the sector as much as the Senate would allow.
Amending the corporation’s investment mandate does not require Senate approval.
Sources say Mr Hunt was angered at being left out of the decision. The disagreement adds to a number of cabinet splits in recent months……….
The clean energy board now has time to respond to the decree. The government is required to consider that response before tabling the directive in parliament and making it legally binding. The government’s directive will not affect existing investments.
The decision will please anti-wind cross-bench senators such as David Leyonhjelm. But wind industry insiders, who declined to comment on the record, say the decision is a “big blow”. One said that while it will not sink the industry altogether, it will make things harder.
Head of Australia at Bloomberg New Energy Finance Kobad Bhavnagri said the decision would have a “significant” impact on the industry.
A major international renewable energy company told Fairfax Media the decision would add to perceptions Australia was not a safe place to do business.
“This adds to the negative message being sent to international investors,” a senior source at the company said. “Why would an international investor want to put their money into wind energy in Australia when you have both the prime minister and treasurer saying they’re ugly, a blight on the landscape? There are a lot of other countries where they can invest.” http://www.smh.com.au/federal-politics/political-news/tony-abbott-has-escalated-his-war-on-wind-power-20150711-gia3xi.html#ixzz3fikGQmbt
No comments yet.
1 This month
of the week – Disrupting War & Militarism in Oceania. Active solidarity. Radical practice.
Antinuclear 
Leave a comment