Portland bears brunt of wind turbine decision: 130 Jobs Go

Warrnambool Standard
Wednesday 22/8/2007 Page: 1

A PORTLAND factory which manufactures blades for wind turbines has blamed the Federal Government's lack of support for renewable energy for its decision to shut down by the end of the year with the loss of 130 jobs.

Danish company Vestas closed its Wynyard turbine assembly plant in northern Tasmania last year. Senior vice-president for Vestas Asia Pacific, Jorn Hammer, said market conditions in Australia did not support the wind energy industry. He said not enough wind farms were being built to make the factory viable. "It's a big disappointment to Vestas," Mr Hammer said. He said the wind industry was flourishing overseas but struggling in Australia despite the obvious potential.

Liberal member for Wannon and Speaker of the House of Representatives David Hawker last night said news of the company's plans came to him as a surprise. Mr Hawker said he would discuss the case with senior government ministers and would not continent further until he had learned all the facts. "I'm surprised the company hasn't contacted me and I'm very concerned about the employees that will lose their jobs," Mr Hawker said last night.

The decision came less than a week after AGL Energy confirmed it had dumped plans to build a $140 million wind farm in south-east Victoria because it no longer considered the project to be financially viable. "Our view is that the different market mechanisms in other parts of the world support investment in sustainable energy," Mr Hammer said.

The Victorian Government implemented its own Renewable Energy Target scheme after the Federal Government refused to extend the national scheme, which requires energy retailers to buy about two per cent of their energy from renewable sources. Under the Victorian target, power companies will be required to buy 10 per cent of their energy from renewable sources by 2016. Without this effective government subsidy, wind energy, which costs double the amount of coal-generated power, is not competitive.

Victorian Industry and Trade Minister Theo Theophanous said the closure was the direct result of a lack of federal government support for the renewable energy industry. "The Victorian Government has done everything in its power to support this company's operations in Portland," he said.

Opposition environment spokesman Peter Garrett said the Howard Government's consistent hostility to renewable energy showed its failure to take climate change seriously. "Whilst this sector booms across the world and plays an increasing role in reducing greenhouse gas emissions, the possibility of yet another company departing the Australian market points to the abysmal short-sightedness of the policy approach of the Howard Government," he said. Mr Garrett said Labor would significantly increase the Mandatory Renewable Energy Target.