Editorial: Is CS Energy response shutting the gate after the horse has bolted?

Premier Steven Miles’ response to the CS Energy debacle might be too little too late, writes the editor.

Queensland Labor has for a decade argued that owning the state’s energy companies is much better than selling them off.

The issue was then Labor leader Annastacia Palaszczuk’s big political line in the sand when she successfully beat pro-privatisation LNP premier Campbell Newman in January 2015.

But what was a popular political move has led to a political headache now, thanks to the still-unfolding crisis at Queensland’s second-largest state-owned energy generator, CS Energy.

It is a crisis that has, so far, cost the state government tens – if not hundreds – of millions of dollars in dividends, caused tensions with the unions, and put pressure on all of our power bills.

CS Energy’s problems began in earnest in 2021 when an explosion at its Callide facility cut power to 500,000 homes and businesses. Restoration efforts have taken far longer than expected (stretching well into this year), with further breakdowns and explosions of plant along the way – drying up CS Energy’s dividend stream to the government.

The state has made no money at all from CS Energy since 2021, compared to collecting hundreds of millions of dollars in dividends in the years prior.

The company has also lost the confidence of workers following an incident just days ago involving malfunctioning battery chargers and injuries to three workers.

The Mining and Energy Union is demanding senior management at CS Energy be stood down, and an independent expert – forensic engineer Sean Brady – has been brought in to undertake a full-scale audit of both Callide and Kogan Creek power stations.

The troubled Callide Power Station

Mr Brady has already completed one highly critical report on the 2021 explosion. That report – which the company fought long and expensively to keep secret – highlighted various management failures, organisational chaos and cost cutting.

So far, the government has managed to avoid most of the blame, by successfully making sure the focus remains on CS Energy. Energy Minister Mick de Brenni insists he was misled in briefings.

CS Energy has offered a suite of grovelling apologies, including by the newly appointed chair of the board Adam Aspinall. He has acknowledged written briefings to the government about the 2021 explosion were “ambiguous” and that the government had approved, without any adjustment, all requests from the company for maintenance and capital spending.

But the reality is that as much spin as you want to put on it, the government owns CS Energy and appoints the members of its board. These appointments have often been closely aligned with Labor.

(Mr Aspinall replaced former Labor lord mayor of Brisbane Jim Soorley, appointed by Ms Palaszczuk in 2015.) The government therefore has to take ultimate responsibility for CS Energy’s performance.

To his credit, the Premier has said the government will appoint special advisers to the CS board and has instructed Queensland Treasury to review the company’s management and structure – and its focus.

Whether this is akin to closing the stable door after the horse has bolted is yet to be seen.

But whatever else, it highlights one of the biggest risks of the Labor Government’s preferred model of state ownership of energy assets – actually knowing what is going on inside a business that as ministers you are ultimately responsible for.

CRACKDOWN WELCOME BUT OVERDUE

Premier Steven Miles’s promise to finally do “whatever it takes” to rein in the militant union CFMEU is a good thing, but he had no choice.

That it has taken an alleged assault on a worker who dared try to cross a CFMEU picket line for any action to be taken does not reflect well on the Premier’s leadership, nor that of his ministry. They should have acted sooner.

While there is not suggestion any of the individuals involved in the picket line brawl were involved in yesterday’s alleged assault outside the worker’s home, Mr Miles and his entire cabinet have known for years the lengths the rogues who run the CFMEU are willing to go to.

Their response, however, has not – until yesterday – been to take on the union. Instead, a succession of ministers have quavered in every instance, giving into the CFMEU’s often-ridiculous demands – fearing the personal retribution that is often either threatened or implied.

The Premier has now promised new laws to ensure the Queensland branch of the CFMEU is put into administration – and, further, to take “what steps are necessary at a state level to stamp out this violence and intimidation”.

This is all very welcome. But you have to wonder if the Premier would have acted at all had the federal government’s crackdown on the union not provided him cover.

Up until this point, Mr Miles,
and his predecessor Annastacia Palaszczuk, have lacked the courage to take on the CFMEU. It will be a stain on their leadership.

Responsibility for election comment is taken by Chris Jones, corner of Mayne Rd & Campbell St, Bowen Hills, Qld 4006. Printed and published by NEWSQUEENSLAND (ACN 009 661 778). Contact details here