02-November-2011
Portfolio Media Releases
A key adviser to the Gillard government on the $10 billion Clean Energy Finance Corporation aka ‘Bob Brown Bank’ has conceded that the fund will attract “dodgy people” and “shonky operators”.
“We now have the government’s own adviser confirming the inherent risks associated with this $10 billion slush fund which is what the Coalition has been warning of from day one,” Shadow Minister for Finance Andrew Robb said.
The admission to Fairfax by David Paradice follows fresh reports that another U.S. government backed alternative energy company – Beacon Power – has filed for bankruptcy.
This comes on the back of the collapse of solar company Solyndra which was guaranteed by the U.S government to the tune of $535 million.
“This is what happens when governments foolishly throw money at high-risk ventures that the banks wouldn’t touch and renewable energy would be one of the most fraught areas of all,” Mr Robb said.
Mr Robb said legitimate renewable energy companies had as much to fear from the mismanagement of Labor’s slush fund as anybody.
“The ‘Bob Brown Bank’ will attract all sorts of fly-by-nighters looking to make a quick buck at the expense of taxpayers and credible operators. That’s exactly what we saw with the pink batts disaster when good insulation businesses were sent to the wall by the actions of the shonks.
“After the obscene levels of waste and mismanagement we have seen from this government there is no way known Julia Gillard could guarantee that billions won’t also be wasted on this scheme,” Mr Robb said.