Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Hansard source

I thank the member for Paterson for her question and acknowledge that, indeed, as she said, she is the daughter of a coalminer and committed to the coal industry and she sees it as having an important role to play into the future.

Certainly, we need to be technology neutral when it comes to energy policy. We have to focus on that trilemma that we are seeking to deal with: energy affordability and energy stability as we transition to a lower emissions future. Indeed, Dr Finkel and his expert panel made a series of recommendations, one of which was the clean energy target, which would see more than 50 per cent of the National Electricity Market's power coming from coal by 2030. There were also important recommendations around ensuring that there was a three-year notice of closure period, which would help avoid the problem we had with Hazelwood, and that there would be a requirement for renewables to provide their own storage, which may be a pumped hydro facility or may be gas or indeed may be batteries.

But the member for Paterson should rest assured that we are committed to dealing with that trilemma. I have to point out to her that, unfortunately, when her party was last in government, there was a doubling of the retail prices—a doubling. And that was due to a combination of gold plating across the poles and wires and the carbon tax.

We, as a country, do need to ensure lower electricity prices, because it is affecting the heart of jobs, investment and growth in this country. It is not right that we have the world's most abundant reserves of uranium and coal and we are soon to become the world's largest exporter of gas, and, according to ARENA, have the world's largest supply per capita of wind and solar, but we have rising prices. And that is why the government is investing in a series of measures to get more gas supply, to put in export controls, to rein in the networks and the retail prices, and to ensure that we give due consideration, as is appropriate, to Dr Finkel's report.

The member for Herbert I dare say has faced a lot of pressure in her own seat in refusing to come out and vocally support the Adani coalmine. There is 11 per cent unemployment in Townsville. It is the coalition who have taken a very positive step with the Townsville city deal as a means of supporting the 190,000 people across Townsville, the largest city in northern Australia and one which has great opportunities whether it is in defence, water security, tourism, our initiatives around the stadium, the CRC or the work that we are trying to do in the surrounding areas to boost renewable energy. Indeed, we have a very proud record in that regard. In 2016 there was a fivefold increase in renewable energy investment compared to 2015. I am proud to say that both ARENA and the Clean Energy Finance Corporation have undertaken significant funding during the time of the coalition government. ARENA is investing around $8.9 million in a renewable project around Kidston that involves a 50 megawatt solar plant and there is the work around a potential 250 megawatt pumped hydro facility. We know how important the combination of pumped hydro with the storage capacity that would provide with a solar project such as planned for Kidston could be in stabilising the grid and providing 24/7 power.

We are absolutely focused on water initiatives and water security in Townsville. We are making record investments in water infrastructure and undertaking the proper studies that need to be done to ensure the potential for new dams. We are working with state government colleagues there. We have reinvigorated the area with the Townsville city deal, which was welcomed by the mayor and by the state government. (Time expired)

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