IFM warns on legislative inconsistency

Garry Weaven

Having invested heavily in renewable energy projects, Industry Funds Management (IFM) has found itself at loggerheads with the Victorian Liberal Opposition over statements by its leader, Ted Baillieu, that a Liberal Government would repeal state legislation setting a renewable energy target.

IFM, which represents the funds management arm of the industry superannuation funds movement, controls Pacific Hydro.

It said such a move by a Victorian Government had the potential to sabotage up to $2 billion in new capital investment in the state by Pacific Hydro and other renewable energy investors.

It said that all power generation plants required long timeframes over which investors could obtain returns to cover their substantial capital outlay and, therefore, the possibility that a regulatory regime might be overturned represented a very serious issue.

The chair of IFM, Garry Weaven, said all political parties needed to adopt a responsible approach to maintaining consistency in the legislative environment as a fundamental basis for attracting investment into a critical sector of the economy.