MEDIA RELEASE FROM CRAIG INGRAM MP - MEMBER FOR GIPPSLAND EAST Issued: Monday, 11 February 2008

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Ingram slams rate and water charge leg-up for power industry 

The Independent Member for Gippsland East, Craig Ingram, has called on the state and federal governments to end the massive rate subsidies and advantage given to the coal industry in the Latrobe Valley.

“Latrobe Valley residents and Gippsland Water customers pay some of the highest rates in the state and a large part of this excess is government mandated subsidises to the power industry,” Mr Ingram said.

“The government cannot claim that it is serious about addressing climate change and assisting renewable energy unless it removes these inequitable and polluting rewards to the brown coal power industry.

“Why should Latrobe City and Gippsland Water ratepayers continue to shell out tens of millions of dollars per annum to subsidise dirty and polluting power?

“Gippsland Water provides 70% of its water services and 65% of its wastewater services to a small number of large customers, yet Gippsland Water’s revenue from those major users is just 25% of its income.

“This inequity will only increase with the implementation of the Gippsland Water Factory project.

 “The power companies give just 10% of what any another business would be required to pay in the Latrobe Valley.

“Ratepayers in Latrobe City pay an implied rate of 13.7, which is almost exactly four times the implied rate paid by the residents of Toorak and South Yarra.

““Not only has the State Government failed to address this massive inequity, but it has since increased the royalties which it receives from the power companies by more than 100%, about $40 million a year,” Mr Ingram concluded.

Note: “Implied Rate” is calculated by the Victorian Grants Commission based on valuation divided by rate revenue per shire.