Latrobe coal to 'fireproof communities' "THE exploitation of the...

Latrobe coal to 'fireproof communities'

"THE exploitation of the Latrobe Valley's vast brown-coal reserves will be key to helping fireproof vulnerable communities against the effects of the carbon tax and structural change in the power industry, a new report into the region will show.

The Baillieu government will today release its roadmap for the coal-driven region, which faces potentially thousands of job losses as the energy industry undergoes generational change forced by demands for cleaner power and the Gillard government's price on carbon.

The roadmap will recommend that the vast reserves of brown coal form a key role in its energy future, but millions of dollars will need to be poured into the region's infrastructure, industry planning and small business support.

Special attention would need to be paid to various sectors, including agriculture, aviation and manufacturing.

The report will respond directly to last week's Latrobe Valley transition committee inquiry and is in response to the relentless changes to the power industry in recent decades, which have cost thousands of jobs and threaten more labour shedding.

Victoria's Deputy Premier, Peter Ryan, will warn that the introduction of the carbon tax will mean the premature closure of the valley's brown-coal-fired power stations, which are about 150km east of Melbourne.

He said the restructure would require the region's coal resources to be expanded and diversified at the same time as agriculture, aviation, food processing and advanced manufacturing were crucial to the future.

"The introduction of a carbon tax is designed to encourage the premature closure of the Latrobe Valley's brown-coal-fired power stations," Mr Ryan will warn.

"It will directly affect many workers and have consequences for casual workers and local businesses reliant on the power industry. It will also affect other resource industries important to the region.

"Change on this scale will take years to unfold and will be felt by families, individuals, businesses and communities throughout the Latrobe Valley."

The report says that brown coal will continue to provide the core of Victoria's baseload electricity for the "foreseeable future" and was a potential source of valued-added products such as gas, diesel and fertiliser.

It says if technology enables the water to be removed, it is possible the coal can continue to contribute significantly to the local economy. There also was potential for coal-seam gas, shale oil and gas with geothermal, clean energy and carbon capture and storage also on the agenda.

The report will set the Victorian government's long-term strategy for the region, working with commonwealth and local governments as well as businesses and communities.

It contains seed money to help stimulate investment and employment ahead of the overhaul of the power generation industry and what it says are "the full impacts of a national price on carbon".

"The carbon price will also affect other major resource-based industries with the Latrobe Valley," the report warns.

The energy sector employs more than 3000 people in the valley, with each job generating a further four to five local positions in the broader regional economy, the report says.

http://www.theaustralian.com.au/national-affairs/carbon-tax/latrobe-coal-to-fireproof-communities/story-fndttws1-1226422949196