THE chairman of Aurora Energy has played down a $2 million payout to former chief executive Peter Davis, disagreeing it was excessive. Western Tiers independent MLC Greg Hall grilled chairman Geoff Willis over Dr Davis's employment contract during government business scrutiny hearings in Hobart yesterday. It was revealed last month Dr Davis finished his 10-year tenure at the helm of Aurora with a $2 million salary package, including a termination payment of more than $1.3 million. Mr Willis told the hearing the payout was substantial but had now passed, and was a result of having transferred "a very substantial company into a small one". Energy Minister Matthew Groom said the government had been reviewing remuneration guidelines, including arrangement for termination arrangements. "The government had some real concern about this, it's hard for Tasmanians to understand these sorts of numbers," Mr Groom said. The company broke off as a retail-only arm in July, and its distribution arm merged with Transend to become TasNetworks. Rumney independent MLC Tony Mulder questioned whether a separate state-owned company was needed to sell power. Mr Mulder pressed Mr Groom on whether the company could buy power from producers aside from Hydro to be more competitive. Mr Groom said he was certain the state was getting the best outcome from buying from Hydro. "I'm sure Joseph Stalin said the same thing when he collectivised the agriculture farms but we are talking about free enterprise here, not centrally controlled economies," Mr Mulder said. Mr Groom said the government remained "open to debate" on selling Aurora's customer list, but said it would not be restricted to a time frame. "We remain open to discussions with mainland retailers," Mr Groom said. Opposition Leader Bryan Green said Mr Groom's response abandoned the government's promise to keep power prices down. "In opposition Matthew Groom called for full retail competition every day of the week and said it was all so easy," Mr Green said. "Despite the Liberals strong support for the sale of Aurora's customer base in opposition, Mr Groom is now showing no urgency whatsoever to pursue competition in the Tasmanian retail market," he said. Aurora chief executive Rebecca Kardos said she expected the business to be profitable and provide a "good return" to the government moving forward.
Aurora chairman Geoff Willis and Energy Minister Matthew Groom. Picture: Daniel McCulloch
THE chairman of Aurora Energy has played down a $2 million payout to former chief executive Peter Davis, disagreeing it was excessive.
Western Tiers independent MLC Greg Hall grilled chairman Geoff Willis over Dr Davis's employment contract during government business scrutiny hearings in Hobart yesterday.
It was revealed last month Dr Davis finished his 10-year tenure at the helm of Aurora with a $2 million salary package, including a termination payment of more than $1.3 million.
Mr Willis told the hearing the payout was substantial but had now passed, and was a result of having transferred "a very substantial company into a small one".
Energy Minister Matthew Groom said the government had been reviewing remuneration guidelines, including arrangement for termination arrangements.
"The government had some real concern about this, it's hard for Tasmanians to understand these sorts of numbers," Mr Groom said.
The company broke off as a retail-only arm in July, and its distribution arm merged with Transend to become TasNetworks.
Rumney independent MLC Tony Mulder questioned whether a separate state-owned company was needed to sell power.
Mr Mulder pressed Mr Groom on whether the company could buy power from producers aside from Hydro to be more competitive.
Mr Groom said he was certain the state was getting the best outcome from buying from Hydro.
"I'm sure Joseph Stalin said the same thing when he collectivised the agriculture farms but we are talking about free enterprise here, not centrally controlled economies," Mr Mulder said.
Mr Groom said the government remained "open to debate" on selling Aurora's customer list, but said it would not be restricted to a time frame.
"We remain open to discussions with mainland retailers," Mr Groom said.
Opposition Leader Bryan Green said Mr Groom's response abandoned the government's promise to keep power prices down.
"In opposition Matthew Groom called for full retail competition every day of the week and said it was all so easy," Mr Green said.
"Despite the Liberals strong support for the sale of Aurora's customer base in opposition, Mr Groom is now showing no urgency whatsoever to pursue competition in the Tasmanian retail market," he said.
Aurora chief executive Rebecca Kardos said she expected the business to be profitable and provide a "good return" to the government moving forward.
