The Member for the South West Region and Shadow Minister for Energy Dr Steve Thomas says the total cost of consultants advising the Government its management of the Collie coalfields hitting $3 million represents an utter failure to find both a viable and politically palatable solution to either the viability of the coalfields or the stability of electricity generation.
“On top of the $260 million subsidy the Government is paying the administrators of Griffin Coal to cover its day-to-day operating losses, they have now confirmed that the cost of the external consultants they are paying to find a solution has jumped from $1.3 million a year ago to $2.9 million today” Dr Thomas said.
“The consultants are the only people making money from this disaster, and despite that there is still no solution to the problem.
The Government has paid nearly $3 million dollars to five different consulting firms to try to come up with a solution to decades of mismanagement of the Collie coalfields.
“It is so bad that three of the five consultant companies are still currently engaged and running up even more cost” Dr Thomas said.
“When it comes to the final cost your guess is as good as mine.
“Sadly, the only result so far has been a recommendation that the price for coal goes up to reflect the price of production, which would significantly impact retail power prices.
“But the Government appears incapable of accepting such politically damaging advice until after the next state election, which is in less than six months’ time in March 2025.
“The Government is happy to accept the advice in principle, and keeps repeating the mantra that it “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.”
“But it cannot put those words into action because it is politically unpalatable, especially now.
“The Government’s only 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.
“In the meantime, it will spend millions more on advice it cannot act on.”
