Govt breached faith on power stns: Greens

5 Sep 2012, 12:34 pm   -   Source: AAP

Greens leader Christine Milne says the federal government never really got behind a plan to close dirty coal-fired power stations that it has now dropped.

Australian Greens leader Christine Milne says the federal government was never really committed to closing down the nation's dirtiest power stations.

Energy Minister Martin Ferguson on Wednesday announced Labor had abandoned plans to pay some coal-fired power generators to shut down, under its so-called contract for closure program.

Mr Ferguson said the government could not be satisfied that entering into such arrangements would give value for money.

Senator Milne told reporters in Hobart on Wednesday the decision was a "breach of faith".

"It's a breach of faith with the Australian community, a breach of faith with the multi-party climate committee and it really goes against the spirit of everything we have been trying to do," she said.

Labor had put the "fox in charge of the hen house" by getting the energy minister to lead the contract for closure process.

"Martin Ferguson, I don't believe, has tried very hard at all to achieve an outcome on contracts for closure and I don't believe that in terms of the coal companies that they have tried very hard either," Senator Milne said.

"They have been through the motions."

Senator Milne, who has led the Greens' talks with Labor on carbon pricing, said the government would face an electoral backlash.

"Labor can't be trusted on the environment - it's as simple as that," she said.

The Greens have called for the Productivity Commission to review compensation to coal-fired power generators, with a view to reducing it.

"The whole point of addressing global warming through an emissions trading scheme is to accelerate the transition away from fossil fuel and to renewable energy," Senator Milne said.

"Shutting down some of the dirtiest coal-fired power stations was at the heart of what we are trying to do.

"(Mr Ferguson) is clearly the minister for fossil fuels."

Senator Milne said there would also be now a "dislocation" in communities where the power stations were based.

As carbon pricing made the power stations less viable, rather than there being an "orderly transition" the communities were likely to get a shock as the plants faced commercial reality and suddenly closed.

"Instead you've got a minister who will be smiling all the way to the next coal pit," Senator Milne said.

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