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 Bass Strait cable plan depends on $800m from Canberra 

Bass Strait cable plan depends on $800m from Canberra

06 Feb, 2012 07:28 AM

A LIBERAL Party proposal to build a second Basslink-style cable to export renewable energy relies on the federal government covering the full $800 million price tag.

Liberal energy spokesman Matthew Groom revealed the policy yesterday, arguing that Tasmania had to ensure that it got its fair share of federal government funding available for energy infrastructure.

``We see this as national infrastructure and it should be funded nationally,'' Mr Groom said.

He said the introduction of the carbon tax gave Tasmania a ``real environmental advantage'' in the National Energy Market.

Labor and the Greens savaged the plan yesterday.

Premier Lara Giddings suggested there was a rift between the Tasmanian and federal Liberals.

``If the Liberals really believe in Tasmania's clean energy future, how could they support Tony Abbott's policy to repeal carbon pricing?'' Ms Giddings said.

Liberal Senator Eric Abetz and Mr Groom denied that there was a division.

``We oppose the carbon tax, but given that the scheme is about to commence, we need to ensure Tasmania, which runs on 80 per cent renewable energy, is treated fairly,'' Mr Groom said.

A feasibility study into a second Bass Strait interconnector found that a second electricity link was likely to be unviable in the short to medium term.

Ms Giddings said it was only last week that Liberal leader Will Hodgman had said Tasmania was too reliant on Canberra.

``Now the Liberals are basing the key plank of their energy policy on a federal funding scheme over which they have no control,'' she said.

Greens energy spokesman Kim Booth dismissed the Liberals' energy policy as a ``Sunday thought bubble''.

``I don't think there's any substance to it,'' Mr Booth said.

The policy includes a promise not to sell the government-owned Hydro Tasmania but leaves open the possibility of selling electricity retailer Aurora Energy and transmission company Transend.

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