Griffin Coal subsidies half way through as spending on consultants skyrockets

The Member for the South West Region and Shadow Minister for Energy Dr Steve Thomas says the latest total of the ongoing taxpayer subsidy to Griffin Coal as the Government spends evermore on consultants who have provided no answers paints a damning picture of the State’s disastrous management of the coalfields.

“It has now been twenty months since the State Government started subsidising the operating losses of Griffin Coal with taxpayer’s money, and the bill has hit $124 million so far for an average of $6.2 million a month” Dr Thomas said.

“That is nearly half of the $260 million the Government has committed to subsidise the foreign owned and insolvent company over four years to mid-2026 because, as they admit themselves, the alternative is to put up power prices to cover the true cost of coal.

“I suppose the Government can take comfort from the fact that at the half way point of the subsidy time period they are half way thorough burning up the cash available to cover Griffin’s operating losses.

“Their only success appears to be their accuracy in predicting on how much they need to subsidise Griffin Coal until the end of June 2026 – just over a quarter of a billion dollars.

“On top of the subsidies however the Government has paid millions of dollars more to consulting firms to try to come up with a solution to the of mismanagement of the Collie coalfields.

“The contract with KPMG for advice on how the Government should manage this unmitigated disaster started at $240,000 in June 2023 has blown out thirteenfold to $3,080,000” Dr Thomas said.

“The only result of that money I have seen has been a recommendation that the price for coal goes up to reflect the price of production, which would significantly impact retail power prices.

“So instead of raising power prices the Government will subsidise the company’s losses to the tune of a quarter of a billion dollars until a year after the next state election.

“However, the community should not be fooled. Even on the Government’s own coal closure timelines Griffin Coal will be used to produce electricity well past the June 2026 deadline.

“The Government has repeatedly said that the solution to Collie’s coal issues was for companies to pay a “fair price….that reflects the true price of production”.

“Which means the Government’s solution is for the price of coal to go up, which will drive up the price of electricity derived from that coal, but not until after the next state election” Dr Thomas said.