Hazelwood power station closure: Drive is on to save Latrobe Valley

THE Latrobe Valley may become home to “ghost towns” if workers have to leave to find work after Hazelwood power station’s closure in March.

• Morwell sets itself for tough times ahead
• ‘Another kick in the guts for the Valley’
• Matt Johnston: Hazelwood fallout a worry for Alcoa
• Josh Frydenberg: We’ll focus on three key areas
• Electricity prices in Victoria tipped to jump in 2017 with Hazelwood closure

HAZELWOOD power station’s closure in March will deal a devastating blow to brown-coal towns in the Latrobe Valley, where 750 jobs will go.

Some may become “ghost towns” if workers have to leave to find work.

And in further shock news for a state already bracing for power price rises when the station shuts, Hazelwood’s owner, Engie, revealed it also wanted to offload another coal-burning plant, Loy Yang B.

Up to 250 workers could be needed short-term to rehabilitate Hazelwood, but not all would necessarily be from its 750-strong current workforce. Some could be contractors.

MORWELL SETS ITSELF FOR TOUGH TIMES AHEAD

‘ANOTHER KICK IN THE GUTS FOR THE VALLEY’

MATT JOHNSTON: HAZELWOOD FALLOUT A WORRY FOR ALCOA

JOSH FRYDENBERG: WE’LL FOCUS ON THREE KEY AREAS

ELECTRICITY PRICES TIPPED TO JUMP IN 2017 WITH CLOSURE OF HAZELWOOD

Premier Daniel Andrews, criticised for lifting coal royalties as Hazelwood’s future hung in the balance, will today launch a $266 million regional economic rescue plan.

Premier Daniel Andrews at Morwell. Picture: Rob Leeson

The package, which aims to avoid a social and economic crisis in Victoria’s southeast, includes $174 million for job-creating road and rail projects and a radical “economic growth zone” offering tax breaks to businesses moving to Latrobe City, Wellington Shire, or Baw Baw Shire.

The government said a business moving to the Valley by buying a $500,000 property could get up to $25,000 in stamp duty reductions.

“We are opening doors to businesses to bring jobs and opportunities to the Latrobe Valley and to keep the community and local economy strong,” Mr Andrews said.

But Hazelwood worker Ron, who asked his surname not be published, said he would probably leave the Valley, “because that’s where the work is”.

“My family has always been here; my parents’ parents have always been here. I’ve enjoyed it here, but due to the skills I’ve got, I won’t be able to use them here, so I’ll have to look elsewhere,” he said.

Ron, Maurice and Justin. Picture: Rob Leeson.

David Wilson, a unit controller at Hazelwood and a former Latrobe City councillor, said new jobs were needed. Without them, young families may split as one parent searches elsewhere for work.

Justin, 44, who also asked that his surname not be published, said he had hoped to retire at Hazelwood, but would now consider temporarily leaving his two children in Victoria to find work interstate.

Ron, Maurice and Justin outside Hazlewood power station. Picture: Rob Leeson.

Engie Australia CEO Alex Keisser said closure had been a “commercial decision”. It would have cost $400 million to bring the station up to par and more than $150 million to rectify WorkSafe notices.

He said there would be no job cuts at Loy Yang B while a buyer was sought.

The Federal Government announced $43 million to support the Latrobe Valley in the wake of the closure, including $20 million for local infrastructure, $3 million to help employees directly, and a $20 million jobs package.

Federal Energy Minister Josh Frydenberg slammed the State Government for tripling coal royalties and ramping up its renewable energy target.

But Trades Hall Council secretary Luke Hilakari urged governments to work together or face having ghost towns like those in Detroit after the US car industry collapsed.

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MORWELL SETS ITSELF FOR TOUGH TIMES AHEAD

‘ANOTHER KICK IN THE GUTS FOR THE VALLEY’

MATT JOHNSTON: HAZELWOOD FALLOUT A WORRY FOR ALCOA

JOSH FRYDENBERG: WE’LL FOCUS ON THREE KEY AREAS

ELECTRICITY PRICES TIPPED TO JUMP IN 2017 WITH CLOSURE OF HAZELWOOD