Authority unable to say how much of $266m Hazelwood fund remains one year after closure
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The authority established to manage $266 million of support for the Latrobe Valley's transition away from coal-fired power generation says it is unable to provide a figure on how much of that money has been spent.
Hazelwood Power Station once supplied up to 25 per cent of Victoria's electricity, but its eight generators were switched off a year ago.
The closure left more than 750 people out of a job and governments scrambling to respond to a spike in unemployment in a region where one in two people were already without work.
The State Government formed the Latrobe Valley Authority (LVA) in November 2016 after Engie, the owner of the Hazelwood Power Station, announced its plans to retire the plant.
The LVA's purpose was to manage the $266 million assistance fund.
A $20 million dollar Worker Transfer Scheme has seen 48 former Hazelwood workers redeployed to the region's three other power stations.
Under the scheme, Loy Yang A, Loy Yang B and Yallourn were offered incentives to offer workers early retirement packages to free up jobs for younger people left unemployed by Hazelwood's closure.
A year after Hazelwood Power Station's closure 48 per cent of workers looking for an ongoing job are still unemployed, and many of the projects funded by the LVA are only just getting started.
Where has the money gone?
The LVA's chief executive Karen Cain would not to put a dollar figure on how much of the $266 million support package had been spent in the year since Hazelwood's closure.
She said while the entire $266 million had been allocated, it was impossible to say exactly what remained in the kitty.
"Those projects we cannot provide a specific expenditure to date are those that are long-term initiatives, are being undertaken by or with other organisations, or may be subject to commercial in confidence arrangements," Ms Cain said.
How is the money being spent?
- $174m: Infrastructure funding (including $85m for sport infrastructure)
- $40m: Economic development program
- $22m: Worker reskilling and training support
- $20m: Worker Transfer Scheme
- $17m: Gippsland hi-tech precinct, Morwell
- $10m: Helping businesses to grow
- $5m: Streamlining planning processes
- $5m: Supply chain transitions
- $5m: Improvements to nine schools
"The funding is for four years, while some of those projects have happened and have been completed, others will [need] a longer period of time to play out.
"There were some really quick pieces of work that needed to be done, particularly support for workers and support for business."
A $22 million Worker Transition Service has so far helped 1,141 workers and their families retrain to find new jobs.
A separate back-to-work scheme has made 485 payments of up to $9,000 to employers who hired and trained former Hazelwood workers.
"The back-to-work scheme has been extended; we're up to the third time that's been extended," Ms Cain said.
Of $50 million set aside for the development of an Economic Growth Zone, only $2 million has been spent.
The money was meant to encourage businesses to the area and help local business develop.
Ms Cain said she was not concerned by the fact such a small portion of the Economic Growth Zone funding had been spent, but has recommended changes to the program.
"It's for things like reimbursement of land tax, stamp duty, those sorts of things," she said.
"[But] if a business was coming down here to lease a building, it didn't cover the lease.
"We've talked to 240 businesses during the past 12 months, so we've made a number of recommendations … for this coming 12 months."
Sporting clubs the ones to benefit from State funding
Nearly a third of the fund, or $85 million, was allocated to improving sporting infrastructure in the region.
Plans are underway for a $46 million Gippsland Regional Aquatic Centre, and a $17 million Traralgon sports stadium.
The Ted Summerton Reserve, in Moe, was given $3 million dollars for upgrades.
The venue has also played host to AFLW and pre-season AFL games under a deal with Collingwood Football Club — the value of that deal has not been disclosed.
Moe Football Club senior captain James Blaser said by supporting sporting clubs the Latrobe Valley Authority was supporting retrenched workers.
"There are benefits in having strong community sporting clubs," Mr Blaser said.
"The closure and the downturn in workers has a direct impact on a lot of our players; last year we lost a couple who had to go to Darwin for that heavy industry work.
"Out of 50 or 60 guys we have on the senior squad I would say eight to 10 of them work away Monday to Friday and only come home on the weekends.
"If they were working away Monday to Friday and had no reason to come home on the weekend, would they just up and move their family to where they are working?"
The Traralgon Tennis Association, which hosts the Traralgon Junior International and the Traralgon Challenger pro event, was given $400,000 for upgrades and renovations so it could continue to attract international events.
The association's head coach, Graham 'Woofa' Chalmers said the funding helped the club compete against newer venues in Melbourne for events, which in turn brought people and money to the Latrobe Valley.
He said much of the work being done with LVA funding to improve the region's sporting infrastructure was directly employing local people.
"A lot of clubs are pretty tired and a lot more money could be put in, but $85 million was a magnificent start, whether it was a political basketball to soften the blow, it's been well received," Mr Chalmers said.
"That money really provides incentive and a pat on the back and it just makes the place not only look good but be very presentable to world-class events, which is imperative.
"There's nothing better than a cuddle in life. When you need a cuddle you get it, and our cuddle is getting help with funding and support."
Topics: electricity-energy-and-utilities, coal, morwell-3840, moe-3825, traralgon-3844
