The Victorian Government’s decision to support a $400 million investment in the Latrobe Valley has been welcomed by VECCI.

The Victorian Government today approved International Power Australia’s West Field coalfield development, which will enable the Hazelwood Power station to operate beyond 2030, protecting 800 Hazelwood and contractor jobs.

The decision follows an independent panel report on the Hazelwood West Field EES, which found that the IPRH proposal for the West Field development is the most economical alternative for the supply of base load electricity to Victoria and the National Electricity Market.

"This is not only good news for the Latrobe Valley, but for the wider Victorian economy", says VECCI Chief Executive Officer Mr Neil Coulson.

"Brown coal energy has helped attract significant business investment into the State, so much so that Victoria currently produces one-third of Australia’s manufactured goods across a diverse base of industry sectors, such as automotive, food, plastics, cement, paper and high tech equipment.

"The manufacturing sector, with around 350,000 employees, represents nearly 15 percent of the Victorian workforce, with many service industry jobs also reliant on manufacturing.

"For Victoria’s manufacturing sector to prosper, it is important that energy supplies are reliable and that Victorian energy prices are nationally and internationally competitive.

"Hazelwood power station produces nearly a quarter of the State’s power.

"Victoria has a 500 year supply of competitively-priced brown coal - as an economic asset, it is Victoria’s equivalent of the North West Shelf.

"This is especially so in the context of possible future power shortages - according to the Victorian Government’s own Infrastructure Planning Council, Victoria faces a shortage of baseload power by the end of the decade.