The Latrobe Valley is home to large brown coal reserves and has been the main source of power generation for Victoria and south-eastern Australia for more than 130 years. 

In November 2016, Engie announced the closure of the Hazelwood Power Station and Mine, impacting approximately 1000 direct and indirect jobs. In response, the Victorian State Government established a Mine Rehabilitation Commission, and created the Latrobe Valley Authority. This included an investment package of $AUD266 million over four years to support workers, business and local communities. 

Key elements

• A Worker Transition Service connected local workers and their families to support services that enabled them to acquire new skills, training and information. They had access to a number of pathways including: new employment opportunities; start their own business; or retirement (+1400 people supported).

• A Worker Transfer Scheme offering Hazelwood workers directly impacted by power plant closure re-employment opportunities locally, from other power generators in the region.

• A “Back to Work Scheme” provided employers with a financial incentive to hire and train unemployed people as well as retrenched workers from local industry (+800 people employed).

• An $AUD85 million “Latrobe Valley Sports and Community Initiative” supported construction and upgrades of many sporting precincts in the Latrobe Valley.  This increased participation in local community clubs and provided an economic boost through visitation to the region for major events. (Partnerships with 9 elite sporting organizations have brought over 30 major events to the region).

• An $AUD20 million Community Facility Fund supporting 180 different community groups to undertake tourism and cultural projects.

• An Economic Facilitation Fund supporting business growth, economic diversity and new job creation (+ 962 jobs created). 

• “GROW Gippsland”, a programme that strengthens social and economic outcomes through localised procurement and increases job opportunities for key target groups, including transitioning workers and people with barriers to employment.

• Extensive consultations with citizens and communities to develop a common understanding of what the future of work looks like in the region.

Benefits

• The investment program fostered re-employment, up-skilling, supply chain support, economic stimulation as well as diversification creating new jobs and improving liveability, pride and social connection.

• Core fields of regional development were identified with the help of local academic partners. They include renewable energy (building on strong workforce and technical capacity in the power sector as well as available natural resources), food and fibre, as well a tourism.

• Multi-stakeholder approach giving a “voice” to all community members including those that might not otherwise be heard.

Enabling conditions 

• Authorisation from senior levels of State Government including funding for four initial years covering a place based approach that recognised comprehensive community impact.

• Recognition that the regional transition would take time and involve different phases including: Response, Recovery and Resilience Building.

• Community, business, industry, government and education were empowered to work together to create genuine conditions for economic diversification and long-term sustainable prosperity.

• Strong local governance and an approach focusing on identifying gaps, strengths, and opportunities.

• Direct involvement of public sector specialists working alongside academics, business, and communities.