A power of trouble

I REFER to resources minister Dr Anthony Lynham’s letter ( TB 7/ 7).

Minister Lynham lauded the Palaszczuk Government’s plans to reduce regional electricity prices by 1.3 per cent; establish a $ 2 billion Affordable Energy Plan that grants rebates to assist 53,000 Queensland households buy energyefficient appliances and $ 50 annually off power bills with a guarantee that electricity prices will not rise above inflation for two years. Sounds great, but in truth it is partying on the deck of the Titanic.

The truth is that the Palaszczuk Government is skilled at playing politics but it is steaming Queensland to a massive economic disaster. That is not a political statement. It is an economic statement based on financial facts.

In June 2016 the Palaszczuk Government amalgamated Ergon and Energex under Energy Queensland.

EQ’s June 2017 annual report reveals total assets of $ 22 billion, liabilities of $ 19 billion and equity of $ 3 billion ( 14 per cent). That is very little equity, especially for a government- owned corporation.

EQ’s loans are $ 16 billion, borrowed from Queensland Treasury Corp.

QTC has assets of $ 138 billion and liabilities of $ 137 bil- lion. Its equity, net only $ 1 billion.

The real risk is that by 2030 EQ will become unprofitable and unsustainable. What happens to the $ 16 billion of loans then? QTC and the Government have no capacity to write off the loans.

In 2015 Ms Palaszczuk transferred an additional $ 4 billion of debt to the stateowned energy corporations, claiming that the Government was not liable for the debts of the GOCs. That is untrue.

If EQ is unable to service or repay its loans owed to QTC, the people of Queensland will pick up that cost – $ 9000 for every household. assets, is

The Government takes every dollar out of EQ. The annual report confirms EQ’s retained profits are minus $ 1.3 billion. The dividend paid to the Government in 2017 was $ 881 million.

EQ’s 2017 annual report says it has no ability or plans to make loan repayments.

The Palaszczuk energy plan is that by 2030, 50 per cent of all energy generated will come from renewables that are privately owned. By 2050 all the existing state- owned coal and gas power stations will be closed. The Government’s own forecast is that EQ will lose $ 1 billion in revenue by 2030 as private renewable generation replaces state- owned generation. By 2050 there will be no revenue from the state’s coal and gas power stations.

There are many more financial facts that confirm that EQ will not be able to service its loans in the future and that the revenue from and the value of the state- owned assets, including the transmission grid, will substantially reduce.

This is beyond politics. This is about good economic management and the future of Queensland.

The outcomes can only be changed if we elect a government that can handle the truth. BARRY LOWE,

Kirwan.