“Absolutely piffling, an insult,” is how Cr. Mike Coley described an offer from AGL Energy to contribute $40,000 a year to the community from the operation of the proposed gas-fired power station near Dalton.
His comments came after a report from Upper Lachlan General Manager Mr. John Bell to last week’s Council meeting.
Mr. Bell reported on correspondence from Mr. Nigel Bean, Head of Generation Development at AGL.
Mr. Bean noted that AGL “is an active participant in the communities in which it operates.”
He advised that typically AGL’s community activities were supported in two ways:
1. Wind farms – nominated community fund plus sponsorships;
2. All other generators (including gas) – grants and sponsorships.
He further suggested that applications for grants be “vetted” by a three person committee consisting of one representative each from AGL, Council and the community.
Funds would be paid directly to the project by AGL by cheque.
AGL offered $40,000 per year indexed annually at CPI.
Mr. Bell commented that AGL argued this compared favourably with equivalent wind farm community funds.
Cr. Coley made his feelings clear.
It was a “piffling” offer taking into consideration the impact on the area, and that the power station was a billion dollar project.
Cr. Brian Moloney asked what the Big Hill power station had contributed, to which Mr. Bell replied $100,000 one-off, and a $30,000 offer to the local Fire Service.
“We believe the $100,000 should be an annual fee,” Mr. Bell added.
Cr. Moloney: “I’m a bit in the dark about the effects of these gas fired power stations.
“I understand the one at Uranquinty is now surrounded by empty farm houses.”
Cr. Moloney suggested that Council should make inquiries about the effects at Uranquinty, which will be done.
Cr. James Wheelwright said he believed Council should have the responsibility of handling any community enhancement funds.
“”We can be removed from our positions if we don’t do it satisfactorily,” Cr. Wheelwright added.
In reply to a question from Cr. Wheelwright, Mr. Bell said the $40,000 offered did not compare with the contribution required from wind farms, which was based on the megawatt output of each turbine.
Cr. Sandra Bill suggested that a community meeting should be held: “the people need to see them thumbing their nose at us.”
Cr. Wheelwright pointed out that at this stage the only argument was about the community enhancement fund.
Mayor Cr. John Shaw agreed that a community meeting would be appropriate, but not until Council had a response from AGL.
Finally, it was agreed that Council advise AGL that the level of contributions and administration thereof had been established in Council’s Development Control Plan for all electricity generation developments.
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