And from the Age as well...Baillieu plan to save Latrobe Valley...

And from the Age as well...

Baillieu plan to save Latrobe Valley workers

THE Baillieu government has drawn up a multimillion-dollar rescue plan to help the brown-coal-dominated Latrobe Valley diversify its economy and retrain sacked workers.

Regional and Rural Development Minister Peter Ryan will unveil today a Latrobe Valley industry and employment road map, a blueprint aiming to make the region more viable under a carbon tax. The plan includes a call for the Commonwealth to make major infrastructure investments in the region - including new road and freight projects - and use money from its carbon price to pay for the development of low-emissions brown-coal projects.

Mr Ryan said the road map would guide future development in the Latrobe Valley by providing an immediate set of actions and direct Commonwealth assistance. Under its climate change plan, federal Labor has also set aside $200 million of carbon tax revenue for regional assistance, a large proportion of which is likely to be spent in the valley.

''This will require all levels of government to co-ordinate and deliver the support the Latrobe Valley community needs to strengthen its economy and attract new investment and jobs,'' Mr Ryan said.
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As part of its Latrobe Valley road map, the state government will add $5 million to an existing Latrobe Valley industry and infrastructure fund. It will also spend more than $1 million more on short-term industry planning and support.

Under the blueprint the state government says it will make an allocation of funds to subsidise TAFE training for retrenched Latrobe Valley workers who are ineligible for other assistance programs.

The Latrobe Valley has been a major energy hub for decades on the back of cheap, but highly polluting, brown coal.

Over time, the carbon price will make burning brown coal for electricity more expensive, to reflect its environmental impact.

The federal government is also in negotiations to pay to shut up to 2000 megawatts of highly polluting coal-power generation by 2020, with three Latrobe Valley generators - Hazelwood, Yallourn, and Morwell - being considered.

The road map says carbon pricing will have a major impact on the region's economy by reducing coal-fired generators' profitability, generating flow-on effects to employment. It says the region is also facing broader challenges such as increased labour and borrowing costs and the high Australian dollar.

A major review of the valley's economy released last week found the region had significant opportunities to grow its agricultural, manufacturing and business services industries.

The road map also spruiks the government's controversial upcoming tender of new brown-coal allocations for export and other projects.

Federal Regional Affairs Minister Simon Crean will visit the valley on Monday.

The minister said he was keen to read the road map.

''Despite political differences over carbon pricing, Minister Ryan and I agree on the importance of a partnership approach to leveraged investment and shared priorities,'' he said.

National president of the CFMEU Tony Maher said any assistance for workers was welcome and the union movement would fight for more.

But he said the federal government's regional assistance fund was not enough.

''For something that is going to go on for years, $200 million is barely going to scratch the surface,'' he said.

Read more: http://www.theage.com.au/victoria/baillieu-plan-to-save-latrobe-valley-workers-20120710-21u0c.html#ixzz20GCG0YSL