BY TIM GOODEN
GEELONG What could only be described as a David and Goliath battle looks likely to end in a fall for giant energy corporation AES. On March 15, AES announced it was not proceeding with the construction of a gas-and-kerosene fired power station on the outskirts of Geelong.
The original plan by the state government was to build four peak load gas-power stations to overcome power shortages and to undermine union industrial action. The Geelong plant, the third to be built, should have been finished before this summer but a strong community campaign was launched last winter and tied up much of spring in the Victorian Civil Administrative Tribunal (VCAT).
When the tribunal failed to completely stop the plant's construction, protesters established a 24-hour picket on the site and lobbied for union support. A 100 days on the picket line party set down for March 24 soon turned into a semi-victory party.
AES had been under pressure from the community to announce its intentions ever since production on the plant stalled. The company has also been under financial pressure with a huge drop in share prices, not helped by its close business ties with recently collapsed US energy company, Enron. Announcing the decision, AES cited a recent investigation into the finances of the plant and said it was not currently viable.
As Darren Aitken, spokesperson for the community picket line explains: This battle may be won, but the war is not over yet. The permit to build the project still exists and the Victorian government has future plans. We will hold a picket and vigil until we are sure that the government has changed direction to a more sustainable energy policy.
AES has not clarified whether the plant would be viable if it was built later, probably when electricity prices are higher or when it could get a greater market share. The project and current assets including the permit, which lasts for two years, could be sold to another company. The state ALP government is remaining tight-lipped about its options. However, reports on the local TV news indicate that recent improvements to Victoria's power supply may have reduced the need for more power stations.
Activists are very pleased with the outcome. After several rallies and public meetings, some 1000-strong, lobbying, letterboxing, raising $50,000 to apply to VCAT, they are confident that the enormous effort put into the campaign was worthwhile.
The Electrical Trades Union immediately and unambiguously opposed the plant being built, giving the campaign its full support. However, until the decision to halt the project the Victorian Trades Hall Council's Building Industry Group (BIG) did not oppose the power station's construction, although it said that the unions would not cross a community picket. If the project is re-started, BIG will review its current position.
In the meantime the picketers intend staying in some form. The local shire council is attempting to have the picket removed because they don't have a permit to camp. The picket line has been informed that AES has just purchased the land they are camping on for $1.7 million. So this sets the scene for a few more battles before the war is over, said Aitken.
From Green Left Weekly, March 27, 2002.
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