Monday, May 28, 2012
Clean Energy Corporation could lose 7.5% of capital each year.
With Treasury saying that investments by Gillard's Clean Energy money pit could lose 7.5% of capital each year I am amazed that banks have not been falling over themselves to lend money to these projects. These silly bankers are being shown the way by the much more astute CEFC which is mandated to return the Government bond rate of 4% from energy projects .These Treasury shiny-bums are going to take projects that savvy investors would not touch with a barge-pole and they are going to guarantee a minimum return to the taxpayer which is probably only possible in the weird alternative universe they live in.These public service financial wizards should have to mortgage their homes to add to the money they dole out so they can feel like real risk-taking businessmen. The really sad thing is that if and when a sane government pulls the plug on all the stupid subsidies to "green energy" these pie-in-the-sky projects will fail and the taxpayer will be left with a 10 billion dollar bill anyway. Whatever happens we are screwed!
Treasury officials have told a parliamentary hearing that under the investment rules for the CEFC it had factored in a "conservative" failure rate of 7.5 per cent.
However the CEFC is mandated to return close to the government bond rate of 4 per cent.
The CEFC will receive $10 billion to invest in clean energy projects under the government's carbon pricing scheme.
Treasury officials said the corporation would help address financing gaps in the current financial environment to help renewable energy projects proceed.