House debates

Monday, 11 September 2017

Questions without Notice

Energy

2:01 pm

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

My question is to the Prime Minister. The Liberal government is now in its fifth year of office. Since the 2013 election, have power prices gone up or down?

Mr Pyne interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Leader of the House! The Leader of the House is preventing the Prime Minister getting the call.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

The Leader of the Opposition, or Blackout Bill as many Australian now know him as—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Prime Minister will refer to members by their correct titles.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

Thank you, Mr Speaker. Well, Australians are paying the bill for the blackouts created by the reckless energy policies of the Labor Party. I notice they're all making a sign of solidarity with the Muslim Brotherhood with the Rabia sign there. They might want to think about that.

Honourable members interjecting

Well, it is!

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Deakin. The Manager of Opposition Business on a point of order.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

That one really should be withdrawn.

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

Come on.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Leader of the Opposition will not interject over the Manager of Opposition Business when he has a point of order to make. I'm going to say to both sides of the chamber, the level of noise, the waving of arms and the gestures are absolutely ridiculous. If, in that climate, you expect me to hear every single thing that's said then you know that's impossible. I'm going to say at this early stage, as I said last Thursday and I've said earlier, I'm not going to tolerate continual interjections, arm waving and gesturing through question time, as if members are at a sporting event. I'm simply not, and for those who I warn regularly, don't be expected to be warned and certainly don't expect that your penalty will only be an hour.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

The consequence of Labor's reckless approach to energy policy is being felt by Australians now.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Prime Minister will resume his seat. The member for Gellibrand will leave under 94(a). The Manager of Opposition Business on a point of order.

The member for Gellibrand left te chamber.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

I know there were interruptions after I raised the point of order, but I did ask for a comment to be withdrawn.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

I wasn't sure of the comment you asked to be withdrawn, but it might just assist the House if the Prime Minister withdraws the comment.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

Thank you, Mr Speaker. Mr Speaker, I withdraw any suggestion—

Opposition members interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

Members on my left!

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

I withdraw the comment, but I would refer honourable members to the way in which that sign is used elsewhere and is well known. That's a fact. That is a fact. If they can't cope with the realities of the world today, that is a matter for them. There it is.

Energy prices today are the consequence of reckless decisions taken by the Labor Party. There is no question about that. We know that gas prices went through the roof in the earlier part of this year because there was a shortage of gas on the east coast of Australia. Now, why was that? That was because more gas was being exported to the extent that the local domestic market was short of gas. That is why prices went through the roof. How could this happen? How could this possibly happen? I will tell you how it happened. It happened because the Labor Party, in their stupidity and ignorance, refused to take account of the clear warning—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Prime Minister will resume his seat. The Leader of the Opposition on a point of order.

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

Point of order on relevance. It was a 22-word question and it simply said, 'Are prices up or down since your mob got into power?'

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Leader of the Opposition will resume his seat. It would assist the House as well if the Leader of the Opposition didn't use terms like 'mob'.

Mr Pyne interjecting

The Leader of the House will not answer on my rulings.

Mr Brian Mitchell interjecting

The member for Lyons will withdraw.

Photo of Brian MitchellBrian Mitchell (Lyons, Australian Labor Party) Share this | | Hansard source

I will withdraw.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

I don't know what frustrates the Leader of the Opposition more: the reality that his party in government—a government in which he was a minister—ignored the advice they received that their policy on allowing unrestricted export of gas from the east coast would put up prices and create tight supply, or that his friend, the member for Port Adelaide, finally confessed to it. I don't know what he objects to: the incompetence or the late confession. Either way, Australians know the facts. The reason we are paying too much for energy at the moment is because of Labor. (Time expired)

2:07 pm

Photo of Jason WoodJason Wood (La Trobe, Liberal Party) Share this | | Hansard source

My question is also to the Prime Minister. Will the Prime Minister update the House on how the government's energy policies are already pushing down gas and electricity prices for households and businesses, including in my electorate of La Trobe?

Mr Fitzgibbon interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

I haven't called the member yet. In all fairness, before I call the member, he has been on the wrong side of some frivolous points of order in the past. I refer him to my earlier statement. The member for Hunter on a point of order on the question.

Photo of Joel FitzgibbonJoel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | | Hansard source

Mr Speaker, thank you. I refer you to page 557 of House of Representatives Practice, which says:

Questions must not contain statements of fact unless they can be authenticated and are strictly necessary to render the question intelligible.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Hunter will resume his seat. I am ready to rule on the point of order. He will resume his seat straight away. If members want me to adopt that practice strictly, as I've said, most of the opposition's questions are going to be out of order. I don't think the Manager of Opposition Business has authorised the member for Hunter to go down that path.

Honourable members interjecting

Members on both sides aren't helping. I will tell you how it works out. The Prime Minister has the call.

2:09 pm

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

Thank you, Mr Speaker. The opposition tactics committee must be a fascinating place!

The government are putting downward pressure on gas and electricity prices, and we are ensuring that the system becomes more reliable not just today, but in the months and years ahead. We're planning for Australia's future energy needs, not like the Labor Party and their leader, the member for Maribyrnong, who, when the consequences of the Liddell Power Station closing down in 2022 was set out by AEMO, saying, 'This is going to create a big gap in dispatchable or baseload power'—

A government member: What did he say?

What did he say? He said, 'I think that's an issue down the track'. I guess that was what the member for Port Adelaide thought when they ignored the expert's advice that allowing unrestricted gas exports would create a shortage of supply on the year's growth, that it was another 'issue down the track'.

The member for Port Adelaide, the great confessor himself, finally confessed under the steely interrogation of David Speers. He'd managed to avoid confessing when he was interrogated by Barrie Cassidy, but Speers finally got him. He speared him, in fact. The member for Port Adelaide said, 'Everyone knew there was going to be an impact on prices.' Now this is more a case of idiocy than ideology. Labor's energy policy has been driven by ideology and idiocy; together, it is an absolutely fatal combination as far as Australians' power bills are concerned. No forethought and no care whatsoever. So when they demand that we should take action—and, of course, as I'll describe, we already are—they're really saying, 'Please fix up the mess we created.' That's what they're saying.

Since we made our announcement that we would take steps to restrict exports to protect the domestic market, wholesale spot prices in July were as low as $6 a gigajoule. They currently sit around $6 to $10 a gigajoule, down from $12 to $14 earlier in the year, so we are already seeing a result. LNG operator Santos announced that 30 petajoules of gas will be diverted from exports in 2018 and 2019. That's enough gas for 330,000 homes for two years. So you're already seeing positive results—

Mr Champion interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Wakefield is warned.

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

more gas, lower prices and a better outcome for all Australians. (Time expired)

2:12 pm

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | | Hansard source

My question is to the Prime Minister. Power prices have never been higher than they are under this Liberal government, now in its fifth year. The Prime Minister used to acknowledge that the fastest way to bring down power prices was to act on gas. Is the government refusing to pull the trigger on gas export controls because there are serious legal doubts about the ministerial actions of the Deputy Prime Minister? Why are doubts about his deputy standing in the way of lower power prices for Australians today?

2:13 pm

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

As I have just described to the House, the government's policy has already resulted in lower prices and more gas coming onto the market. The minister's determination, which is a determination that puts precise restrictions on exports, is one that was taken after a considerable amount of consultation and information and advice. And that comes from the agencies, from ACCC, from AEMO; it obviously requires a lot of consultation and insight into what's going on in the industry. As honourable members will have heard, there is more gas coming into the market as we stand.

So honourable members can be assured that we, unlike the opposition, are committed to Australians having all the gas they need, and that will mean they will have lower prices. The policy is already working. We are getting the result that we need, and the minister will make the determination at the appropriate time when he has sufficient information to do so.

2:14 pm

Photo of Rowan RamseyRowan Ramsey (Grey, Liberal Party) Share this | | Hansard source

My question is to the Treasurer. Will the Treasurer outline to the House how the government is ensuring that all Australian small businesses and families have access to affordable and reliable electricity? Are there any alternative approaches that would put small business and Australian jobs at risk?

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Treasurer) Share this | | Hansard source

I thank the member for Grey for his question because he knows how to stand up for jobs and small businesses in his electorate. He knows how to do that. We saw that with his keen advocacy for the changes that we have made to small business taxation to ensure that they are paying lower taxes, to ensure that we are cutting the compliance burden for small business, to ensure that we are evening up the playing field with changes to the competition laws and, in particular, putting downward pressure into everything we do when it comes to energy prices. We saw from the member for Grey the advocacy that is needed for regional communities when he stood up for the people of Whyalla and ensured that the steel plant continued to remain open, that a buyer was secured and that the support was there. But he is not the only member of rural and regional communities who knows how to stand up for their community. The member for Wannon stood up for the workers of Portland. He ensured that Alcoa stayed open and that the hundreds of thousands of jobs that depend on that plant remained open.

I suggest that the rural and regional members, particularly those opposite from the Hunter Valley, should take a leaf out of the books of the member for Grey and the member for Wannon. It is those members who are standing in the way of the sensible policies of the Turnbull government to put downward pressure on rising energy prices, especially for small businesses. The no-coal coalition of the Hunter members of those opposite have put up the white flag on all the coalmining and energy jobs that sit in the Hunter Valley. They stand against our plans to ensure that we sweat the coal-fired power assets for longer to ensure that we have greater stability in the energy market and greater stability of baseload power in the energy market. That is part of the Turnbull government's plan to put downward pressure on the rising forces on electricity prices.

We are happy to see Liddell remain open. We want to see Liddell remain open. We want to see those jobs remain in place and that stability and certainty remain in the energy market.

Mr Pasin interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Barker is warned.

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Treasurer) Share this | | Hansard source

It is the members opposite who are happy to see coal-fired power stations shut down. We have an all-of-the-above approach, whether it is coal-fired power stations, whether it is Snowy Hydro and the increased storage capacity that brings, whether it is investment through the CFC and low-emissions technologies or whether it is ensuring that Australian gas remains in Australia for Australian use when we need it. We take to task the energy companies when they are not passing on the best deals to retail consumers, which includes small businesses.

We have a comprehensive plan for small businesses in the short term, the medium term and the long term. The Leader of the Opposition wants to turn the lights out across the country and in the Hunter.

2:18 pm

Photo of Jason ClareJason Clare (Blaxland, Australian Labor Party, Shadow Minister for Communications) Share this | | Hansard source

On 24 July, Senator Canavan issued the legal instrument that notified the government's intention to pull the trigger on gas export controls. Is the government now refusing to pull the trigger because there are serious legal doubts about Senator Canavan's ministerial actions, including doubts about him issuing the instrument which begins the gas export control process?

Photo of Malcolm TurnbullMalcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | | Hansard source

The answer is no, and I refer the honourable member to my earlier answers.