Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

Two weeks ago we had the very regrettable if not totally surprising news from Alinta that they were closing the Port Augusta Flinders power stations. While I will not go into the whys and wherefores of why this has come about, it is a plain case of government policy. In this case, the renewable energy target got ahead of itself, oversupplying the Australian electricity market, and it has led to the early demise of these power stations. Given that they had been producing around 15 per cent to 20 per cent of the state's electricity supply, that will present some problems going forward.

Last week I hosted a number of local governments in Canberra. The mayor and CEO of the Port Augusta council were here. We met with a number of ministers, including the Minister for Industry and Science. There are a number of issues around Port Augusta and Leigh Creek, a town that is purpose-built for coal mining and owned by the South Australian government. It will see a complete role change as a result of this decision. In Port Augusta, in particular, I have become aware of a lot of things since the announcement that I might not have anticipated before. For instance, the Port Augusta council will lose $500,000 a year in rates. There is a lake there called Bird Lake that is supplied with water from the nearby power station's cooling system. It will dry out and become basically a stinking mess. The council has lost a number of land sales as a result— (Time expired)