Gippsland’s Community-led Energy Transformation – John Cain Luncheon address

I’d like to acknowledge the Traditional Owners of the land we’re meeting on today and pay my respects to their elders, past and present.

And I start by paying tribute to Emma Dawson, as she steps down from her leadership role.

We need people like Emma and organisations like Per Capita to bring progressives together, and to create new ideas to make our country better for everyone.

I particularly want to acknowledge how much Emma has platformed other emerging thinkers. What a fine quality it is to amplify other voices- we are all the better for it.

I look forward to what Emma and Per Capita do next.

It’s a pleasure to be back on the campus of Melbourne University where I completed a PhD in Economic Geography.

That field of study feels relevant again to many of the questions we’re facing in the world today.

And my focus back then reflected what’s became a lifelong concern, about how industrial restructuring shapes communities, when heartland jobs go.

And how communities can navigate the future with new industries, and the good, secure jobs, that hold regions and cities up.

And it’s a thread of thinking and of commitment that has woven its way to me being here today as a Senator for Victoria, talking about Gippsland’s community-led energy transformation.

A transformation that has the potential to generate not just the renewable offshore wind energy we all need, but also the jobs a struggling region needs too.

Today, I’ll touch on:
• The jobs challenge facing Gippsland and the Latrobe Valley in particular
• The critical role of community leaders in driving the new energy transformation from the grassroots up
• And share some thoughts about how a second-term Albanese Labor Government can support a renewable jobs future in Gippsland
• And we’ll take a detour via the alternative energy plan for Gippsland – the Coalitions nuclear gambit

Let’s start in the beginning, with coal and the energy and jobs it sustains.

There are around 2,000 direct employees and contractors working on the Latrobe Valley’s 3 existing coal stations – Yallourn, scheduled to close in 2028; Loy Yang A – the biggest, with a closing date of 2035; and Loy Yang B slated to close thereafter.

And there are many more workers in the supply chains to these facilities, including in metals fabrication shops across the Valley.

I’ve visited Yallourn and Loy Yang A multiple times over the last couple of years.

I’ve met with the operators, fitters and turners and sparkies who work there.

One of the first things I’ve learned is that the workers know better than anyone that coal’s days are numbered.

The climate wars that the Coalition wages are a long way away when your daily reality is to patch up power stations for one more day.

At the same time as a coal power station fails somewhere in Australia each and every day.

As one 34 year old worker called Chris put it to me – his job is to keep the dying dinosaur alive.

Right now, our coal power stations are literally keeping our lights on here – we still get half our electricity from coal in Victoria.

It’s absolutely essential work, and these workers deserve a future with new jobs, in a region they love.

I’ve met young workers who are the third generation to work in the Valley in energy.

They are not fighting to keep coal alive.

But they do want jobs in an industry like coal, that can have a hundred year future beyond themselves, for their children to stay close by.

They understand energy generation, and they’re proud of their role in it.

The question is what is the new energy future for Gippsland.

And how can we shape it to deliver good, secure jobs for the future.

The Coalition believes nuclear is the answer.

Although they appear increasingly unsure of that, or at least unwilling to say it out loud.

There are many problems with nuclear for this country.

Nuclear is too far in the future.

It can’t replace coal in the time we have, leaving a 10 to 20 year energy gap that can’t be met.

It’s too expensive at $600 billion – based on analysis by the Smart Energy Council, modelled on CSIRO data.

And it ignores the immense progress we’re making on renewable energy – we’re now at 46 percent renewable energy nationally, on track for 82 percent by 2030.

And of course, renewable energy is by far the cheapest forms of energy in Australia.

You can see that firsthand in the control rooms of the power stations, where operators are surrounded by huge screens mapping out the energy grid operated by AEMO.

And you see in real time, solar and wind being switched into the grid, ahead of coal.

In the Valley, locally, there are many problems for the Coalitions plans for a reactor at Loy Yang A, too.

On one visit there, I met Damien Nicks, the CEO of AGL which owns and operates the plant, who holds board meetings on site.

He has said clearly that AGL have zero interest in nuclear for Australia.

This poses a problem for the Coalition, who would have to compulsorily acquire the site to build their nuclear power station.

And also acquire the water required for nuclear from other sources.

And if we think the contest over transmission lines is pretty fierce for renewable energy.

Imagine the contest in Gippsland over water rights.

A 3-way contest between nuclear, the decades of water needed for mine remediation and Gippsland’s prime dairy and farming land.

Compulsory acquisition of the sites.

Compulsory acquisition of water.

Along with government ownership of the stations.

Coal is sunsetting.

Nuclear is not the answer.

And the biggest game in town for Gippsland’s future is offshore wind.

Federal Labor has declared offshore wind zones in Gippsland and 5 other locations across the country (the Southern Ocean off Warrnambool, Bass Strait, the Hunter and the Illawarra, and Bunbury).

Crucially, offshore wind has clear potential to generate the 4GW of energy in Victoria that we’ll lose from coal by 2035, as part of Victoria’s legislated commitments.

And the 12 feasibility licenses awarded to developers have the capacity to generate 25GW of energy over time.

For our energy grid, offshore wind can be a gamechanger.

It also has the capacity to generate jobs – around 3,000 jobs at peak construction.

And 1,800 ongoing operational jobs.

Just last week, Minister D’Ambrosio announced a minimum 80% local content requirement for operations and maintenance of the projects.

10% of labour hours dedicated to apprentices, trainees, and cadets.

$4.9 million investment in a Wind Worker Training Centre.

Those are fantastic announcements.

Research done by the developer Star of the South in concert with TAFE Gippsland and Federation University shows good job prospects, including for the current workforce at the coal stations:
• Almost 70 percent of the workforce has good or high opportunity to transition to offshore wind. That includes fitters, sparkies and operators amongst others.
• There are clear and specific pathways, for example, from boilermaker to blade technician, mechanical fitter to turbine technician or plant operator to deck cadet
• And the opportunity to be jobs rich in the supply chain as well, and in particular in the metal fabrication required for the towers, with Gippsland firms able to supply underwater cables and latches and ladders on towers, and much more.

We would not have a potential game-changing industry like this on the horizon without a couple of powerhouse players.

The first is Lily D’Ambrosio who has driven this agenda for more than 5 years and navigated it with patience and vision.

And the second powerhouse is the Gippsland community.

The Coalition has said it will rip up the contracts in 3 of the 5 offshore wind zones (NSW and Southern Ocean/Warrnambool).

Gippsland is the one place where the Coalition has actively confirmed that if elected they would not do that.

That’s because of the strong community support built by an impressive alliance of local leaders, businesses, climate groups, and the Gunaikurnai Traditional Owners, along with TAFE Gippsland and Federation University.

The Gippsland Offshore Wind Alliance was launched last year.

Organisations such as the Committee for Gippsland and the Gippsland Climate Change Network have worked tirelessly to connect stakeholders and keep people together.

Events like the Gippsland Renewable Energy Conference have grown rapidly, drawing attention and engagement across sectors.

Local businesses have been engaged.

Local unions are engaged.

And traditional energy companies like AGL are on board too, because they want jobs for their coal workers for the future.

As well as the chance to get into this renewable industry sector.

All of this work has been critical in driving public support, and making Gippsland the one place the Coalition won’t touch.

So while State and Federal Labor have driven investment certainty in the sector.

Clear community support has been the foundation of that certainty too.

I want to conclude with some thoughts on the role of the Federal Government in securing a jobs future for Gippsland, as part of the energy transformation.

Federal Labor has the ambition and the infrastructure to build that future with the region.

A tremendous amount of work is being led by Minister Bowen to turn the ship of our economy and our regions towards the renewable future we need, along with Treasurer Chalmers back a Future Made in Australia in the Budget, and Minister Husic in the Industry portfolio.

Momentum is strong, but coordination is essential.

And there are two directions I’d like to see us build out in a second term, based on the work I’ve done on the ground.

First, our legislated Net Zero Economy Authority will be vital.

This Authority has lived for a long time in the minds of unions like the AMWU, ETU and MEU under almost 10 years of Coalition governments.

It is there work in advocating for a NZEA that is now coming alive.

And they’ve started work, coming to Yallourn with me, meeting with workers, and with a roundtable of the community leaders I’ve spoken about.

It’s critical, in my view, that the body of work the NZEA undertakes is about regional development – a jobs plan and map.

Including:
• Jobs to the east in offshore wind closer to the zone itself, around Sale and local ports.
• Jobs to the west in a potential Renewable Energy Port at Hastings, where manufacturing and assembly is possible, noting of course the challenges for approval under the Ramsar Convention.
• Jobs in the Valley in the supply chain, for example in metals fabrication and a range of services.
• And jobs as part of AGL and Energy Australia’s efforts to create renewable energy zones at their sites as well.

When I say the NZEA work must be about regional development, I mean as distinct from a regional employment service model alone.

Because workers at the coal stations already have access to those services through their companies partnering with the Victorian Government.

They appreciate that, but they’re also clear that they don’t want to participate in services designed to connect them to jobs that don’t exist in their region.

Second, we need to define the level of ambition for the offshore wind supply chain.

And there are some big questions on the horizon.

• How much of these 350 metre tall giants do we want to make here.
• Can we fabricate the towers, which have a thicker grade of steel, and are bigger than any industrial facility can currently handle
• Is it more realistic to fabricate steel plates for the foundations
• Can we make the vessels here in Australia too.

There is a significant body of work for a second-term Albanese Labor Government to do, working with industry, unions and regional leaders.

And this is a bigger question than procurement and local content levers that could be pulled at the commercial licence stage.

Because we don’t currently have companies who can work at this scale.

It really is about whether utilising an investment vehicle makes sense to attract offshore wind tower or foundation manufacturing.

As a Government, we’ve shown we have ambition to manufacture solar panels here, and batteries.

And just recently we’ve announced an intention to support capability in onshore wind tower steel fabrication.

Consistent with our commitment to make more of what we need here, we have the infrastructure to invest significantly:
• Both through our $15B National Reconstruction Fund.
• And through our contributions to ARENAs Future Made in Australia Innovation Fund ($1.7B).

In a second term of government, I’d like to see us fully investigate these opportunities as we continue this work to stand up a brand new offshore wind industry.

I’ll leave you with this thought.

All of the ambition and the infrastructure required to build a renewable jobs future Made in Gippsland is at stake in this election.

The Coalition opposes offshore wind and wants to rip up contracts. If Gippsland is the only zone to proceed, it does limit the opportunities for economies of scale for our Australian supply chain.

The Coalition would put nuclear on the nation’s credit card, on the never never, disrupt the renewable roll out, and double-down on fossil fuels.

It would abolish the National Reconstruction Fund.

It opposed the Future Made in Australia legislation.

It opposed the Net Zero Economy Authority legislation.

It would end free TAFE which is vital to training and retraining the workforce of the future.

The result of the election on May 3rd will decide whether workers like Chris have a future beyond the dying dinosaur.

And it will shape the economic geography of Gippsland and the Latrobe Valley, and the opportunities for locals, for generations to come.