Labor says it will not be paying compensation to any gas companies affected by its proposed ban on coal seam gas activities on the states far north coast. The Oppositions environment spokesman, Luke Foley, said the policy announced today would spell the end for the industry in the Northern Rivers. Gas company Metgasco has repeatedly said in statements to shareholders that it has spent $120 million in the region over the last decade, although it is yet to start production. But Mr Foley said that would not entitle the company to a payout. Metgascos made lots of claims, he said. The advice we have is that compensation would not be payable, and certainly we would not want the taxpayers of this state to have to compensate a company whose presence in this region is unwanted, to be blunt about it. The fact that there is not current coal seam gas activity underway in this region means that people can be guaranteed that if Labor comes to government next March there would be no prospect of the coal seam gas, or the unconventional gas industry commencing or recommencing operations in this region. Metgascos managing director, Peter Henderson, said it was extraordinary for Mr Foley to suggest the companys operations on the far north coast could be banned without compensation. Well Id love to argue with him in court, and you will find comments from ministers in the current government which are quite contrary to that, Mr Henderson said.
Posted on: Tue, 30 Sep 2014 05:33:31 +0000