Tuesday, November 17, 2009

Most of Victoria's power stations facing bankruptcy?

Finance guru Robert Gottliebsen warns that most of Victoria’s power stations will declare themselves broke as soon as Kevin Rudd’s colossal taxes on emissions are passed:
Within a week of the current proposed legislation being passed, the boards of each of the companies that own the Latrobe generators will meet with their auditors on whether the companies’ debt covenants have been broken. Almost certainly a majority, if not all the boards, will decide to appoint official administrators.

Gottliebsen says the Victorian Government has bitten its tongue (like too many)… so far:
The Victorian government has received the KPMG report which spells out exactly what will happen. The Victorian government has explained to the federal government what will happen but the level of understanding in Canberra is very poor and they have not yet grasped the implications.

John Brumby has not gone public apparently because he hopes that either the legislation will not be passed or it will be passed in a way that minimises the danger to Victorian electricity supply. But if it looks like being passed in its present form, he has to choose between raising the alarm and minimising his own electoral damage or ‘copping it sweet’ and receiving his full measures of federal money in many other areas.
“Federal money” actually means yours.

Posted via email from Garth's posterous

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