The Member for the South West Region Dr Steve Thomas says the latest total of the ongoing taxpayer subsidy to Griffin Coal presents more evidence of the State’s disastrous management of the coalfields.
“It has now been nearly a year and a half since the State Government started subsidising the operating losses of Griffin Coal with taxpayer’s money, and the bill has hit $77.5 million so far and is accelerating” Dr Thomas said.
Taxpayer funding handed out as an operating subsidy to the foreign owned and insolvent Griffin Coal so far include:
January 2023 to June 2023 $23.2 million
June 2023 to December 2023 $22.6 million
January 2024 to date (29th May) $31.7 million
The latest update this week shows that the subsidy has risen to $2 million a week over the last three months” Dr Thomas said.
“This is part of the total of $260 million the Government has set aside to subsidise the foreign owned and insolvent company over four years to mid-2026 because, as they admit themselves, the alternative is to put up power prices to cover the true cost of coal.
“On top of $77.5 million in subsidies the Government has paid millions of dollars to at least five different consulting firms to try to come up with a solution to decades of mismanagement of the Collie coalfields.
“The only result of that has been a recommendation that the price for coal goes up to reflect the price of production, which would significantly impact retail power prices.
“So instead of raising power prices the Government will subsidise the company’s losses to the tune of a quarter of a billion dollars until a year after the next state election.
However, the community should not be fooled.
“The Government has repeatedly said that the solution to Collie’s coal issues was for companies to pay a “fair price….that reflects the true price of production”.
In a statement leased to Parliament last month the Government said “the Government remains of the firm belief that beyond June 2026, Griffin Coal’s financial difficulties should be resolved through arrangements between relevant commercial parties, based on customers paying a price for coal that supports the stable operations of the mine.”
“So, the Government’s solution is for the price of coal to go up, which will drive up the price of electricity derived from that coal, but not until after the next state election” Dr Thomas said.
