Another month, another multi-million dollar prop up for Griffin Coal

The Government’s weeping sore that is Griffin Coal has once again had a multi-million dollar prop up, highlighting the utter failure of the Cook Labor Government’s management of the coalfields and energy issues of the state according to Shadow Treasurer and Shadow Energy Minister Dr Steve Thomas.

“The $23.2 million handed over up to the 30th of June to a foreign owned company under receivership and administration has had to be increased, with another $4.1million of taxpayers money being handed over by Roger Cook” Dr Thomas said.

“As the Government has previously admitted, they are just propping up this company by paying the difference between income and costs.

“And as I have previously said, this will potentially have to repeated for years to come until a final resolution occurs.

“That final solution probably means the winding up of Griffin Coal, which has no capacity to pay back the taxpayer handouts it is receiving or the $1.4 billion it owes to the bank.

“Obviously the Cook Labor Government is trying to hide how long this taxpayer bailout of a foreign owned company in receivership will continue and how much in total it will cost.

“It is subsidising the operating losses of a company with both administrators and receivers appointed, and that the Government itself has recognised may have been trading while insolvent since last year, perhaps longer according to court disputes recently.

Dr Thomas said it has been a disastrous month for resources and energy under the Cook Government.

“This month AEMO told the Government that it had a looming energy shortfall, and as a response the Government extended the life of a coal fired power station to a month past the next election” Dr Thomas said.

“Today they have thrown millions more dollars at a company whose own lights are going out just to hide the Government’s own embarrassment.

“With performances like this, the entire Western Australian community should be concerned about this Government’s capacity to manage our coalfields and or energy system.

“WA’s taxpayers have now underwritten Griffin’s losses to the tune of $27.3 million, with millions more to come. The original commitment from was $19.5 million at the start of this year.

“That is money that could have been put towards our much need transition to renewables, which is desperately underfunded and unworkable to date.”