Vic: Debate erupts over wind energy factory closure

AAP General News (Australia)
08-22-2007
Vic: Debate erupts over wind energy factory closure

By Catherine Best

MELBOURNE, Aug 22 AAP - The federal government has been accused of dawdling on green
energy amid news a Victorian wind turbine blade factory will close.

Vestas Wind Energy will shut down its Portland blade factory by the end of the year,
saying it is not profitable enough.

More than 130 jobs will be lost in what is a major blow for Victoria's wind energy industry.

Labor, the Australian Workers' Union (AWU) and Greenpeace have blamed the federal government
for the closure.

The coalition has been lambasted for not doing enough to protect the renewable energy industry.

In its financial report, Vestas says it was "compelled" to close the plant because
there were no prospects of growth.

"The factory is not of a sufficient size to ensure satisfactory profitability, and
the market outlook for Australia makes it impossible to expand the facility," the report
says.

The Danish-based company last year closed a similar $15 million factory in Tasmania,
laying off 65 staff.

The Wynyard plant, near Burnie, 345km north-west of Hobart, operated for three years,
manufacturing blade hubs and nacelle components for its wind turbines.

"It's another one bites the dust in terms of renewable energy companies moving offshore,"

Greenpeace energy campaigner Mark Wakeham said of the latest closure.

"Vestas is one of Australia's largest renewable energy manufacturers and one of the
largest in the world and this is a dangerous signal that we're going to lose more jobs
in the renewable energy industry due to the failure of the federal government to increase
the mandatory renewable energy targets."

Mr Wakeham said the green energy market was not large enough in Australia because "we
have a pathetic two per cent renewable energy target".

Unless the federal government introduced a 25 per cent target by 2020, jobs and investment
would continue to bypass Australia for countries like China, the US, Germany and Spain,
he said.

Victorian Industry Minister Theo Theophanous also pointed the finger at commonwealth policy.

"The reason why Vestas has been unable to continue its operations in Portland is very
squarely and directly as a result of the federal government's refusal to extend its renewable
energy scheme to allow the industry to expand," he told ABC radio.

AWU state secretary Cesar Melhem agreed, saying government policy would come back to
haunt the coalition.

But Victorian opposition spokesman for regional development Denis Napthine called on
the state government to act.

He said the factory closure made a mockery of the state government's promise of wind
energy jobs for country Victoria.

"It's absolutely imperative that the Brumby government gets off its backside, gets
down to Portland, talks to Vestas about keeping the factory open and keeping those jobs
in Portland," he told ABC radio.

The AWU will meet with Vestas senior executives today to push for improved redundancy packages.

The union also wants the company to commit to helping employees find secure, local jobs.

AAP cmb/gfr/jm/cdh

KEYWORD: VESTAS LEAD

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