Loy Yang Power Station

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:53): I seek leave to make a ministerial statement.

Leave granted.

Mr Knoll: You guys are just trying to run down the clock, aren't you?

The Hon. A. KOUTSANTONIS: Ministerial statements don't run down the clock, but you are new, so you will learn.

I wish to update the house about the recent threats of industrial action that were forecast to take place at Loy Yang power station in Victoria next week. Last week, I was informed by the Australian Energy Market Operator, as well as AGL, of impending industrial action for an indefinite period at the plant.

In response to the industrial action, AGL advised the stock market would be instituting an orderly shutdown of the power station and mine to maintain safety this week, with a subsequent lockout of staff. More specifically, the Loy Yang A power station will be switched off tomorrow, while the closure of the mine will result in the shutdown of ENGIE's Loy Yang B power station on about 14 May, removing approximately 3,300 megawatts from the system.

Due to the forced closure of the plants in Victoria, AEMO forecast significant shortages of supply and disruptions to both South Australia's and Victoria's power networks, including load shedding. This, once again, is a completely unacceptable situation. I immediately instructed my department to take action to support the Victorian government and make a submission to the Fair Work Commission. We made it clear that if this action was to recur, the welfare of South Australians would be significantly compromised.

I am pleased to be able to inform the house today that last night the Deputy President of the Fair Work Commission ruled that the threatened industrial action be terminated on the grounds that it would impact the safety and welfare of the community and potentially damage the Australian economy. While this government always supports the rights of workers, I welcome the decision by the commission. The relevant parties will now have 28 days to negotiate a new deal.

An incident yesterday at the same power station has highlighted yet again why this government's energy plan is so important. The Australian Energy Market Operator advised that 1,100 megawatts was lost yesterday afternoon following an unexpected trip to units at Loy Yang. Fortunately, on this occasion reserves were sufficient to cover the loss and the restoration of the units began late last night and early this morning. I have asked AGL what caused the trip and I look forward to receiving that information. It shows the importance of being less reliant on Victoria and more self-reliant on our own generation in South Australia.