Government process to deliver security to nation’s fuel refineries should be sped up, MP Richard Marles says
A process to deliver security to the nation’s fuel refineries — including the at-risk Geelong Viva plant — and secure jobs should be sped up, Labor’s deputy leader Richard Marles says.
Geelong
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A federal government process to deliver security to the nation’s fuel refineries and secure jobs must be sped up, Labor’s deputy leader Richard Marles says.
It comes as the future of the Geelong refinery and its 700 jobs are up in the air as its operator Viva Energy considers a full shutdown amid a COVID-19-lockdown-driven drop in demand, and a first-half loss of $49.4m.
Mr Marles said the county could not afford to lose refining capabilities and skills.
“Whilst you have stated that a comprehensive fuel security package is on the way, with a request for information process beginning in June, I write to ask that you fast-track this for the purposes of ensuring the long term viability of Viva Energy, which as you know is one of only four refineries in Australia,” Mr Marles wrote in a letter to federal Energy Minister Angus Taylor.
“Geelong’s Viva Energy refinery has the capacity to process 19 million litres of oil in a single day and currently employs approximately 700 people. In addition, it supports an industrial ecosystem in Geelong that includes numerous other businesses, with crucial capabilities, and thousands of jobs.
“Industrial refining and the critical capabilities that go with it, cannot be left to leave our shores in the same way as automotive manufacturing.”
In April the federal government announced it would spend $94 million to buy oil, at historically low prices, and store it in the United State for 10 years to maintain fuel security.
Submissions to the federal government’s request for information process closed on July 10 but results of the process are yet to be released.
A spokesman for Mr Taylor failed to spell out how the government was supporting Viva in the short term but said the minister was in weekly contact with the company.
“It has taken Mr Marles five months and a public statement from Viva Energy for him to show any concern.
“Rather than trying to shift responsibility away from Premier Dan Andrews, Mr Marles should encourage the Victorian Government to get Victoria’s economy going again.”
In an update to the Australian Stock Exchange this week Viva said it is “working closely” with the Commonwealth on the “viability of the sector” and “is encouraged by the review underway.”
Viva has argued a channel deepening into Corio Bay, which Mr Marles declined to publicly support this week, was part of the solution to its long-term international competitiveness and wants state government support.
In June the federal government said its planned comprehensive fuel security package would focus on strengthening Australia’s fuel industry.
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Originally published as Government process to deliver security to nation’s fuel refineries should be sped up, MP Richard Marles says