Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard   

Previous Fragment    Next Fragment
Wednesday, 23 March 1994
Page: 2133

(Question No. 1163)

Senator Bell asked the Minister representing the Minister for Primary Industries and Energy, upon notice, on 14 March 1994:

  (1) What evaluation of Tasmania's power capacity has been undertaken following the completion of the King-Anthony power scheme given that Commonwealth funding was a significant input to the project.

  (2) If suggestions that this funding was based on inflated forecasts of demand are correct, will the Government be taking any action to recover the funds or establish processes that will ensure that Commonwealth funding of State projects is properly assessed, evaluated and monitored in the future.

  (3) How does Tasmania's current oversupply of electricity affect national plans and forecasts for electricity.

Senator Collins —The Minister for Primary Industries and Energy has provided the following answer to the honourable senator's question:

  (1) & (2) Commonwealth financial assistance was provided to the King River and Anthony Power Developments schemes under a 1984 cost equalisation agreement between the Commonwealth and Tasmania governments following the High Court decision cancelling the Gordon River Development Stage 2. Under the terms of the Memorandum of Understanding the Commonwealth provided $200m (in December 1983 dollars) by means of 10 annual instalments to 1992/93 to help offset the capital costs of the two alternative projects. The King River scheme was opened in May 1993 and the Anthony scheme earlier this year, at a total cost of around $880m. The Memorandum of Understanding also includes an undertaking by the Commonwealth that the remaining 68MW difference between the 112MW combined energy output of the King and Anthony schemes and that which would have been provided by the Gordon River Power Development Stage 2 will be the subject of a similar Commonwealth/State agreement when the need for that electricity has been demonstrated. It has been agreed that a Commonwealth/state interdepartmental committee would progress arrangements to give effect to this undertaking when appropriate.

  (3) Projections published by the National Grid Management Council (May 1993) indicate that under medium growth Tasmania's energy demand will average 1.4% annual growth over the period

1992/93—2004/05 and that new supply capacity will not be required until about 2000/01.