Generators Should be Leased, Not Bought

13 November 2017

In the ever-changing electricity market, and as the Weatherill Government brings on new forms of power security in the coming months, Business SA is imploring the South Australian Government to continue to lease temporary diesel generators instead of buying them outright.

Business SA is questioning the need for the South Australian Government to buy the generators, as foreshadowed today, at a time when the Government has said it cannot afford already-budgeted payroll tax concessions for small businesses.

Executive Director of Industry and Government Engagement Anthony Penney said Business SA had always supported the State Government’s decision to temporarily lease two diesel generators.

He called for the full two-year lease agreement to be upheld to ensure the state could explore all energy options currently on the table.

“Business SA implores the State Government not to buy the generators this year or early next year,” Mr Penney said.

“While we understand that our existing supply is unstable and unreliable as we approach summer, we have faith that the initiatives the Weatherill Government has put forward to solve the energy crisis – including temporary generation, battery systems and solar thermal initiatives – will be enough capacity to keep the power on this summer and next.”

Mr Penney said Business SA supported leasing the two generators because it avoided spending hundreds of millions of dollars the State Government did not have.

He said it also avoided the possibility the generators would not be needed as further capacity came online within the next two to three years, leaving South Australia with two idle machines and unwarranted debt.

“The State Government has said it cannot afford payroll tax concessions for small businesses if the Budget Bill is not passed, yet it is ready to spend hundreds of millions of dollars on generators it has agreed to lease,” he said.

“The purchase is unjustified and will create a further cost burden for the state at a time we can least afford it.”

Image Credit: ABC news

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