News, media releases

Pressure on Groom to resolve gas contract crisis

  • Energy Minister must emerge from COAG meeting with clear way forward on gas
  • Major industrials deserve certainty
  • Matthew Groom’s decision to sell the Tamar Valley Power Station still haunting him

Energy Minister Matthew Groom needs to come out of today’s COAG meeting in Brisbane with a clear plan to resolve Tasmania’s gas contract crisis.

Shadow Energy Minister Scott Bacon said our biggest employers deserve certainty.

“The Energy Minister must demonstrate at the end of today’s meeting that he has a plan to resolve the gas contract crisis,” Mr Bacon said.

“Hundreds of jobs would be put at risk by skyrocketing gas prices.

“Major industrials have been told prices could increase by as much as 95%. That’s not a scenario worth contemplating in terms of potential job losses.

“Negotiations between Hydro and TGP have broken down but COAG is yet to sign off on an arbitration process to resolve disputes.

“Not only does COAG need to agree to an arbitration process – it needs to be put in place urgently.

“Time is running out for major industrials to get a long-term deal locked in.

“On radio yesterday the Premier failed to shed any light on the progress of discussions between Hydro Tasmania and the Tasmanian Gas Pipeline.

“We’ve got a hands-off Premier and an incompetent Minister who created the mess in the first place.

“Matthew Groom’s decision to sell the Tamar Valley Power Station meant Hydro did not enter negotiations over a new gas contract in good faith.”