The Lights Are Shining on Liberal Hypocrisy - David Llewellyn, MHA - Tasmanian Government Media Releases


Energy Minister David Llewellyn today put to bed the wild and inaccurate speculation about the financial position of Hydro Tasmania.
“Will Hodgman’s inexperience and irresponsibility is powering through here as he is more interested in a cheap headline than the facts.
“Let me say from the outset - there is no “cash crisis” at Hydro Tasmania and the Liberals Hypocrisy in claiming ‘Hydro is broke’ is breathtaking.
Mr Llewellyn said in the recent election campaign, the State Liberals had planned raid on Hydro’s finances, including:
o the re-introduction of a special dividend – costing Hydro Tasmania $40 million over four years;
o a cable connecting the Bass Strait Islands – which they say could be done for $60 million – to be funded from the Hydro balance sheet;
o an uncosted Institute of Renewable Energy Development; and
o an uncosted Hydro tourism development strategy.
“The Liberals were going to gut Hydro to the tune of well over a $100 million and now have the ‘cheek’ to join in on this smear campaign.
Mr Llewellyn said the Liberals were happy to talk down the Hydro even though the company’s financial situation has been on the public record, in every Hydro Annual Report and at every GBE Scrutiny hearing since disaggregation in 1998.
“In 1998, Hydro was allocated debt of $1.015 billion - as at 30 June 2005, net debt stood at $1.07 billion, which is virtually unchanged.
“Mr Llewellyn said this level of debt has not prevented the Hydro from delivering strong profits - In the 2004-05 financial year, it achieved a profit before tax of $80 million.
“$36 million was paid in income tax equivalents to the State, and delivered $40 million in dividends.
“Hydro also invested $80 million in property, plant and equipment in that year.
“This was the fifth consecutive year of strong profit performance and we expect more of the same this year.
“The idea there is anything new, or anything to hide, in relation to Hydro’s balance sheet is ridiculous and today the Liberals have been exposed for the political opportunists they are,” Mr Llewellyn said.