Hydro Tasmania questioned at GBE hearings
Hydro Tasmania is in a sound financial position and well-positioned to continue to take advantage of opportunities in the National Electricity Market that are now available via the Basslink connector.
The Corporation is trading profitably in the NEM, will record another strong result for the year and continues to be both a major employer and crucial to the future economic development of the State.
Hydro Tasmania chairman Dr David Crean said today’s scrutiny at the Government Business Enterprise hearing enabled the Corporation to correct a number of the myths regarding its financial position and answer questions on its performance and strategic direction.
Dr Crean said it was an important opportunity for Hydro Tasmania to tell its side of the story and for parliamentarians to have the opportunity to cross-examine both himself and the company’s senior executives.
“There has been a lot of misleading and distorted reporting about Hydro Tasmania in recent months,” he said. “Today’s hearings enabled Hydro Tasmania to set the record straight, address the questions and concerns of the Legislative Council and outline the realities of operating in a commercial market.”
Issues addressed today included:
- Hydro Tasmania expects to return a profit after tax of between $40 and $50 million for 2005/06.
- Corrected claims of a cash crisis. The Corporation is in a sound financial position and talk of a crisis was created by sensationalist media headlines.
- $300m equity injection to reduce debt – Hydro Tasmania will continue to talk to the Government as it is its decision to make. Regardless of the outcome, Hydro Tasmania will still perform strongly in the national market.
“We are well aware that with public ownership comes a responsibility to the entire community and the importance of our activities being properly scrutinised,” Dr Crean said.
“The hearings today provided an opportunity for parliamentarians to ask any questions of the Corporation. This we did fully and frankly.”
Hydro Tasmania - Helen Brain, 6230 5746