Fuel and Energy Minister Geoff Gallop met today with coal industry employers and unions over the ongoing negotiations for a new coal-fired power station at Collie.
Representatives of the Coal Mining Union, Metal and Engineering Workers Union, Australian Engineers and Electrical Foundries Employees Union, Collie Staff Association, Western Collieries and Griffin Coal were present at the meeting.
Dr Gallop outlined to the meeting the Government's position:
· It was affirmed that Collie coal remained as the preferred fuel for the next base load power station in Western Australia.
· However, there was a bottom line in signing any new contract. The appropriate allocation of risks between the public and private sectors and the right price for SECWA were key issues.
· In the event that the preferred bidder, Mitsubishi-Transfield, was not able to deliver the primary objective of low electricity tariffs, SECWA would consider other options for a coal-fired power station.
· The Government recognised the concerns being expressed in Collie and the South-West and that decisions affecting the future of the coal-fired power station needed to be taken as soon as possible.
"The Government's prime and continuing objective is to achieve the cheapest possible tariff from the new power station for the people of Western Australia," Dr Gallop said.
"At the same time, the Government understands that the Mitsubishi-Transfield consortium has found that a number of financial issues have taken longer than expected to be clarified.
"Further discussions are taking place between SECWA and Mitsubishi-Transfield on their bid.
"The Mitsubishi-Transfield Joint Venture is well aware that its sole bidder mandate for the Collie project is subject to its ability to deliver the cheapest possible tariff."
