Llew O'Brien (Wide Bay, National Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister, Minister for Agriculture and Water Resources, and Minister for Resources and Northern Australia. Will the Deputy Prime Minister update the House on the importance of delivering an affordable and reliable energy supply to regional Australia? What action is the government taking to put downward pressure on energy prices for hardworking farming families?

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the honourable member for his question and note that he would be very interested in how we are making sure that people in the weatherboard and iron at Gympie are getting affordable and reliable power and how the coalition is working towards that, and how the people in Maryborough are getting affordable and reliable power so they can stay in a job—and the people in Kandanga, and the people in Kilkivan—because we on this side believe that the people working at Downer Rail are not politically incorrect, that people who have blue-collar jobs are not politically incorrect. We believe that they still deserve a job.

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith has been warned.

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

We understand, quite clearly, that you are going to have either cheap power, cheap wages or no jobs, so we are going to make sure that people maintain their jobs in the manufacturing industry. We know that so far the Labor Party have come up with one thing—their biggest attack point so far is to say, 'Where's your regulatory impact statement?' That is it. Can't you imagine them at the manic monkey cafe, where dewdrop is talking to moonbeam and saying that the coalition does not have a regulatory impact statement? That is about the extent of their concerns for blue-collar workers' jobs.

We have 66 billion reasons to make sure that those people who are doing it tough do not get the Labor Party bill, because the Labor Party bill makes people poorer. There is no doubt about it. A Labor Party bill will make you poorer. If you are doing it tough in the Hunter Valley, a Labor Party bill will make you poorer. If you're doing it tough in Shortland, a Labor Party bill will make you poorer. Without a shadow of a doubt, the Labor Party is now run by those with the philosophical ilk of a manic monkey cafe—basketweaver No. 1 and all their friends—running a power policy that is going to drive blue-collar workers out of a job. And you can see it. Queensland now has the new mantle of the dearest power prices. They've taken over from South Australian Labor. So Queensland Labor now beats South Australian Labor as the most effective Labor policy to put you out of a job.

We have brought forward a policy today which shows that we are not scared of coal-fired power. We are going to make sure that coal-fired power remains in the mix. We are going to make sure that there is a capacity of baseload power to keep people in a job. We stand behind blue-collar workers and their jobs—something the Labor Party has absolutely given up on. They are bereft of the soul they once had under Curtin and Chifley. They no longer believe in the people they were put here to represent. They turn their back on the working-class people every day. Every day, they turn their back on the working-class people and they look towards the basketweavers. They turn their back, they face the basketweavers and they take their dollar.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. So far today the Prime Minister has refused to guarantee that prices will fall. Does that mean that the so-called National Energy Guarantee has no guarantee, no modelling and no regulatory impact statement? What is the point of a National Energy Guarantee if the Prime Minister cannot guarantee that power prices will go down?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I have never seen anyone so bereft of a feather to fly with than the Leader of the Opposition! He doesn't have a policy. He has nothing—just a bunch of whines and complaints. He has no plan for Australia's energy future at all, other than, if you assume that all of us intend the necessary consequence of our actions, then this is what he intends: he intends more blackouts; he intends higher prices; he intends less reliability, because that is what his policies have all delivered in the past—we don't need to theorise. We have just heard from the Energy Market Commission chairman, John Pierce—a former treasury secretary in New South Wales—that this will be a much simpler system to implement for retailers than a clean energy target, because it operates within the existing market mechanism. So, the regulator has given it a big regulatory tick.

We have just heard from Audrey Zibelman, the Australian Energy Market Operator, about how often she has to intervene in the South Australian market to force gas-fired power generators to come on stream, at the highest possible cost, at peak prices, in order to keep the lights on in Adelaide and South Australia. That is why she is advocating this reliability guarantee, which will ensure that the market will be stable and that prices will be lower.

Honourable members have asked what impact this is going to have on prices in the near term. Well, let me quote John Pierce again. John Pierce made the point that energy companies don't set their prices based on the spot price today—

Honourable Members:

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Lalor.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is based on the forward prices for electricity. Because there has been so much uncertainty surrounding the investment climate, because the only new energy that has been coming into the market has been intermittent renewables—wind and solar—forward prices have been higher. What John Pierce has said is that once COAG commits to this, once the mechanism is agreed to, you will see more investment, greater certainty, and forward prices coming down. That's why he is forecasting a 20 to 25 per cent reduction in wholesale prices over the period. We have the smartest minds in the industry, the regulators and the operators, who are telling us—we are not making that claim, we are relying on the smartest minds— (Time expired)

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McEwen will cease interjecting, as will the member for McMahon. The member for Forrest has the call.

Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Foreign Affairs. Will the minister advise the House how the government will meet Australia's international commitment on carbon emissions while ensuring reliable and affordable energy for all Australians?

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank the member for Forrest for her question. The Turnbull government's priority is to ensure that all Australians and Australian businesses are provided with affordable and reliable electricity. We're also committed to meeting our international obligations when it comes to reducing emissions. Australia has a very strong record in setting and meeting and beating our international emissions targets. In fact, we have already exceeded our first Kyoto target by some 128 million tonnes and we will exceed our second Kyoto target by 2020. Our Paris agreement target is to reduce emissions by 26 to 28 per cent on 2005 levels, by 2030. I am confident that we will do that, because our National Energy Guarantee, which was announced today and was recommended by the Energy Security Board set up by COAG, will ensure that Australian households and Australian businesses are able to be delivered with affordable and reliable electricity. The guarantee is in two parts. The first supports the reliability of electricity—that is, keeping the power on so that we don't see the blackouts as experienced by South Australia recently. The second part is about reducing emissions. This is the integration of climate and energy policy that has been lacking for so many years. It will also ensure that there's appropriate investment in our electricity grid. Australia has abundant sources of energy, and this National Energy Guarantee will ensure that we see investment in a range of electricity generation ideas and that we reduce our emissions at the same time.

Labor's reckless plan to reduce emissions way beyond our international obligations not only will drive up electricity bills but also will threaten jobs, threaten household budgets and threaten future economic growth. The choice is clear: Labor will deliver higher electricity bills; the coalition will deliver affordable and reliable electricity.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Can the Prime Minister confirm that so far he has supported an emissions trading scheme and opposed it, supported an emissions intensity scheme and opposed it, ridiculed direct action and endorsed it, derided so-called clean coal and embraced it, and supported a clean energy target and today abandoned it? When the member for Warringah is calling the shots, how can any Australians believe anything this out-of-touch Prime Minister says about lowering power bills?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What a pathetic question from the Leader of the Opposition! This is the Energy Security Board: Kerry Schott AO, chair; and Clare Savage, deputy chair. Both are warmly welcomed by the member for Port Adelaide—

Mr Dreyfus interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Member for Isaacs!

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

John Pierce, chair of the Australian Energy Market Commission; Audrey Zibelman, CEO of the Australian Energy Market Operator; and Paula Conboy, Chair of the Australian Energy Regulator. Apparently they've all been caught up in some sort of political conspiracy. Really, it's about time the Leader of the Opposition recognised his pathetic political games have failed; his slogans have failed; his embracing of one three-letter acronym after another without understanding what any of them mean has failed. What Australians want to see is action. They want to see leadership. They want to see policy. They want to see real expertise. That is what we have received from the Energy Security Board.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Member for Sydney.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

We rely on that expertise to assure us that this will result in affordable, reliable energy. It will keep the lights on in a way Labor failed to do. It will ensure that prices are brought down in the way Labor failed to do. It will ensure that wholesale generation sees more supply, that the playing field is levelled, that the subsidies end and that the market is allowed to operate to deliver the most reliable and affordable power for Australians—affordable, reliable and responsible energy. That's our plan. That's where we're taking the advice from the Energy Security Board.

So, the opposition can play as much politics as they like, but they run head-on into the reality that those leading regulators and operators, those experts in the field, are going to COAG with their recommendation. Labor should stop the politics, get on to the policy and back this plan.

Nicolle Flint (Boothby, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence Industry. Will the minister update the House on why an affordable and reliable energy supply is crucial to delivering the government's national defence industry project? How would an unreliable energy supply risk the economic prosperity of this project and the creation of thousands of jobs?

Christopher Pyne (Sturt, Liberal Party, Leader of the House) Share this | Link to this | Hansard source

I've been to a lot of footy games over the years at the Parade to watch the Redlegs play football. I was just thinking during question time about the people I sit with in the box. I sit there with Rita and Mike, with Ray and Beryl, and with Mario and Vincenza. I have to say that, in all the years I have been going to the Redlegs footy games, they have never stopped me and said, 'Before I consider the government's policy, I have to see your regulatory impact statement.' I have been in parliament for 24 years. I've been to a lot of supermarkets. I've done a lot of doorknocking. I've been to a lot of events. I've been to a lot of footy games. I've been to a lot of RSL functions. I can tell you that I've been to a lot of War Widows' Guild events. No-one has ever said to me, 'I'm sorry, but, before I consider the government's policy, you have to show me your regulatory impact statement.' That's what we've been reduced to in this House today because that's all the Labor Party has left, delving around in cabinet processes, when the only issue that matters here today is affordable and reliable electricity prices.

The Turnbull government have taken the bull by the horns and are delivering reliable power, reducing our emissions and delivering affordable power. Labor have been found totally flat-footed by this Leader of the Opposition, who has led them into a political cul-de-sac where they've never done the hard work on policy. Since they lost the last election, they've not done any work to actually get to the bottom of real issues of government substance. All they do every day is think, 'How do we win the 24-hour news cycle and get on the television news tonight?' They have been found completely wanting, because the Turnbull government, backed by the Energy Security Board, have come up with a solution to the only issue that the members of the public are talking to us about—how to overcome the mess left to us by Labor because of their ideological obsession with renewable energy which they still continue to this day, with a desire to spend $66 billion of taxpayers' money on subsidies for wind and solar, which we now know are competitive with coal and gas. Because of ideology, they intend to waste $66 billion when, instead, they could get on board with the energy guarantee that will bring down prices and provide reliability and that will reduce our emissions and ensure that we are meeting our international targets. It's time to get on board, Labor, and support lower prices.

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Environment, Climate Change and Water) Share this | Link to this | Hansard source

My question is to the Prime Minister. In just the last 12 months, the Prime Minister was for an emissions intensity scheme until the member for Warringah came out against it. He supported a clean energy target until the member for Warringah came out against that. Given reports that the member for Warringah spoke against the Prime Minister's latest energy policy in the party room today, when will the Prime Minister announce that he is against this one too?

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

The last time I looked, Labor was for a clean energy target and, before that, an emissions intensity scheme and, before that, a CPRS and, before that, an ETS and, before that, a $15 billion dreaded carbon tax. When we on this side of the House abolished that we saw the greatest single drop in electricity prices ever recorded. Do you remember that great democratic forum—like Plato, Socrates and Aristotle—of the citizens assembly? Do you remember that one? Do you remember cash for clunkers? Do you remember the pink batts? Do you remember spending billions of dollars to keep coal-fired stations open and then spending billions of dollars to close them? What was the result of all that mess? It was a 100 per cent increase in power prices under the Labor Party. Then they had the hide to come into this place during the last sitting fortnight and tell mistruths about people's power bills to scare mums and dads—the Michaels and Michelles in Maribyrnong and the Beths and Barries in Balmain. This is the Labor Party scaring them about false numbers and going against the best advice of our experts.

Today we have announced that the Turnbull government will support a unanimous recommendation from the Energy Security Board. The Grattan Institute, a non-partisan institute, has said today the following: 'The ESB has given the Turnbull government the last piece in the complex jigsaw puzzle of a credible energy and climate change policy for Australia.' That is what the Grattan Institute has said today. The head of AGL has said: 'The government announcement is an important step. We are keen to work together to make it work with bipartisan support. It will provide investment certainty.' The head of the BCA, as quoted by the Treasurer, has come out and supported this. It has industry support, it has business support and it is the recommendation of the experts. Only the Labor Party, who is again playing politics with energy, will prevent this being the first serious attempt in a decade to get a bipartisan approach to energy policy, to get a more reliable and more affordable energy system.