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New Wind Farm Subsidy Would Be Open To CorruptionThe Bracks Government’s plans to create a cross-subsidy from consumers for wind farm connections to the power grid will leave the energy industry open to potential corruption, according to Liberal Member for Gippsland Province Philip Davis. By Philip Davis - 19th November 2004 - Back to News Speaking on the Electricity Industry (Wind Energy Development) Bill in Parliament yesterday, Mr Davis vowed the Liberal Party would vigorously oppose the Bill.
Mr Davis raised concerns about the subsidy the Bill offers to proponents of wind farms, the distribution of which will be at the discretion of the Minister for Energy.
"This Bill is a disgrace because frankly it sets in place a political relationship with wind farm promoters and a potential for corrupt practice," Mr Davis told the Parliament.
"I do not accuse the Minister of being of a mind to benefit from that, but I am saying that the framework the government is putting in place clearly has the potential for corrupt practice to be observed as a result of that framework, and the government should seriously think again.
"The Bill manifestly distorts the pricing signals in relation to the viability of these projects.
"Bearing in mind that already there is a very significant subsidy going to wind generators as a result of the Mandatory Renewable Energy Target (MRET) put in place by the Commonwealth, it is unfortunate that the government insists on running down this path.
"In conclusion I confirm that the Opposition is absolutely opposed to the Bill and will be opposing it at every stage."
Mr Davis said the wind industry is not yet succeeding financially and the proposed cross-subsidies from consumers are an attempt by the Energy Minister to prop it up.
He said the Liberal Party supported renewable energy, but did not condone the Bracks Government’s practice of forcing communities to have wind farms placed in their back yards when there was fierce opposition.
Mr Davis told the Parliament that although wind power was a renewable source of energy, he had doubts about its ability to eventually replace other forms of energy production.
"I would like the Minister to tell us in his summing up in the debate how it is that wind in Victoria will make any material difference to the amount of energy requirement we have to pull from the Latrobe Valley from brown coal, because in my view it will be so negligible that it would be impossible to measure."
Source: http://gippsland.com/ Published by: news@gippsland.com
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