Eraring Power Station

Mr GREG PIPER (Lake Macquarie) (18:36): Lake Macquarie has been a powerhouse of energy production in New South Wales for almost 70 years. The Wangi Power Station opened in 1958 and was succeeded by Eraring in 1984. Powered by locally mined coal, Eraring currently provides around 25 per cent of the State's energy needs. Yet as the transition away from fossil fuels looms, I am very fearful that Lake Macquarie is being abandoned by this Government, as it has been neglected by numerous governments before. We must transition away from fossil fuels and we must do so as soon as possible. Managing a just economic transition away from coal is a massive task. It requires clear coordinated policies, detailed planning and dedicated resources.

We all know that the Eraring Power Station will be closing in the next few years. A closure day has been proposed for August 2025. That date may change but it is clear that Origin is preparing for the closure in the near future. The Eraring Power Station was originally opened by the Wran Government and remained under government ownership until it was sold by the O'Farrell Government in 2013. Throughout its operational life, the coal for Eraring has been substantially mined and supplied from the Myuna Colliery. Since opening in 1982, the Myuna Colliery has only ever provided domestic coal to the Eraring Power Station. The only means of transporting coal out of the Myuna mine is via an overland conveyor directly into Eraring.

Like Eraring, the Myuna mine was originally opened and operated by the New South Wales government. Like Eraring, the mine was privatised in 2002, but this time by a Labor government. I was strongly opposed to the privatisation of both assets at the time. While the governments of the day received a sugar hit of funding from those sales, the long-term ramifications of the privatisations are now playing out. If media reports are correct, the Government is close to announcing an arrangement to extend the life of the Eraring Power Station. Yet even if a deal is reached, likely through significant taxpayer subsidies, hundreds of highly paid mining jobs at Myuna and Mandalong mines are immediately at risk due to Centennial Coal being unable to reach a supply agreement with Origin Energy.

Since both Eraring and Myuna are now privately operated, the Government has limited control over contract negotiations between the two parties. However, if the Government is proposing to support the continued operation of Eraring through taxpayer subsidies, it would be a perverse outcome for hundreds of jobs to be lost from the captive supplier of Eraring immediately following this decision. Transition away from fossil fuels is necessary and will involve significant pain for the communities affected by the transition, including Lake Macquarie. However, while some pain is inevitable, it is the job of the Government, as far as possible, to ensure the economic transition is fair and managed in a way that provides a soft landing for the employees and communities negatively affected.

It is an issue also of economic justice. The workers and community of Lake Macquarie have powered New South Wales for many decades. The operations have provided not only power but also a direct economic benefit to the State through mining royalties and taxes. Despite the direct economic benefits that the community has provided the State, Lake Macquarie has never received a fair share of investment in infrastructure and services. We have virtually no health facilities. Our road infrastructure is severely overloaded, with projects stalled. Our transport infrastructure needs upgrades, and we are struggling to get progress on funded projects such as the sport and recreation centre at Myuna Bay. Now, at a time when the Government is considering using taxpayer money to extend the life of Eraring, it increasingly appears that the Government will not require certainty of supply contracts to protect the employment of Myuna and Mandalong workers as part of any deal.

The privatisation of Eraring and other coal-fired power stations put the taxpayers of New South Wales at the mercy of private companies for their energy security. That was a mistake, and it has come at a high cost. I urge the Government to do whatever it can for the employees of Myuna and Mandalong mines and to ensure that any deal to extend the life of the Eraring Power Station protects their employment for the life of the extension. This may come at a cost, but the economic cost of the loss of hundreds of local jobs will be much higher for both the individual employees and the Lake Macquarie and greater Hunter community. Lake Macquarie has substantially contributed to the financial coffers of New South Wales for many decades. The community should not be left to languish at this critical time of economic and energy transition.