Media Release

Peter Gutwein MP
Shadow Minister for Energy

Saturday 13th February 2010

Musselroe problems also raise questions about viability of Roaring 40s

Roaring 40s admission regarding the Musselroe wind farm that "we need the Government to fix this problem" unfortunately confirms concerns I’ve been raising now for months in relation this project.

Furthermore, as Roaring 40s has been unable to generate revenues in the last two years sufficient to cover its expenses and required a $50 million taxpayer funded equity injection in 2008, it raises serious questions regarding the long term viability of this major Hydro subsidiary should further wind farm development not occur.

The problem is that the Premier David Bartlett and his Energy Minister David Llewellyn have not been prepared to take on Prime Minister Kevin Rudd over the need for Federal legislation to change to ensure that wind energy developments do not continue to be disadvantaged by the special deal being given for solar roof top panels.

The admission by Roaring 40s today that there “is a strong risk it (Musselroe) won't go ahead” and that “we need the Government to fix this problem”, unfortunately confirms what I have been saying and makes a mockery of Labor’s continued denial over recent months that the project was in trouble.

Not only has the failure by the State Government to take on Kevin Rudd put the Musselroe wind farm in jeopardy it also raises serious questions about the ongoing viability of Roaring 40s itself if wind farm development stalls around the country.

Roaring 40s is in the business of building wind farms and if wind farms cannot be built in this country what will happen to the taxpayers funds that have already been invested in developments that now appear very unlikely to proceed?

This is a disaster of the State Government’s own making. They have been unprepared to heed the warnings they have received, and now jobs, investment and potentially a key Hydro subsidiary are at real risk of collapsing.

This weak Labor State Government must put aside its ideological reluctance to taking on its Federal Labor mates and begin standing up for people of Tasmania as I have been demanding they should for months.

A Hodgman Liberal Government would not be intimidated by Kevin Rudd and would immediately take a strong case to Federal Labor to fix this problem.