Michelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | Link to this | Hansard source

by leave—On behalf of the member for Durack, I move:

That this House:

(1) notes:

(a) the Australian Competition and Consumer Commission's July 2022 gas inquiry interim report, which forecasts that demand for gas for electricity generation will grow by 70 per cent next year and that gas supplies will remain tight;

(b) the implication of this forecast is that gas prices will remain elevated for at least another 12 to 18 months and, by extension, electricity wholesale prices will remain two to three hundred per cent higher than their average under the previous Government for the foreseeable future;

(c) that there is now no prospect of the Government delivering on its promise, made in December 2021 and repeated throughout the 2022 federal election campaign, that it would reduce household power bills by $275 by 2025; and

(d) the silence from the Prime Minister and the Minister for Climate Change and Energy on these issues, and the Minister for Resources' refusal to call on southern state governments to develop new gas resources; and

(2) condemns the Government's abandonment of its election commitment to cut power prices and its failure to come up with any concrete actions or plan to respond to the east coast energy crisis after nine weeks of dithering and delay.

I rise to speak in support of this motion. The Australian Competition and Consumer Commission's July 2022 interim report on its gas inquiry confirms the east coast energy crisis is likely to last beyond the winter of 2023. This is extremely concerning for Australian businesses and households alike. A forecasted 70 per cent increase in gas demand for electricity generation and high international gas prices means that both electricity and gas prices on the east coast of Australia are likely to remain elevated for at least the next 12 months. While I don't think we can assign blame to the Labor government for a surge in international gas prices, it is the government's responsibility to come up with a plan to address this crisis.

What is the plan? The responses from the ministers responsible have been abysmal so far. The resources minister, Madeleine King, managed to say that she was commissioning a discussion paper and promised to set in motion the process of triggering the Australian domestic gas security mechanism. The energy minister, Chris Bowen, has been missing in action. He doesn't support bringing on new gas supply. It would jeopardise his chances of more deals with the Greens on climate legislation.

Australia simply needs more energy. The best long-term fix to disconnect domestic gas prices from high global prices is more supply. The coalition had a plan in government to unlock new supply to keep prices low and the lights on. Our record on energy and emissions speaks for itself. We saw record installations of renewable energy over the past three years. We committed to net zero and put in place the technology investment road map to guide investment of $22 billion in new energy technologies. We saw the results. Under the coalition, electricity prices fell eight per cent for households, 10 per cent for small businesses and 12 per cent for industry. We meet and beat our targets without legislating them. We beat our 2020 targets by more than 459 million tonnes, and we were on track to meet and beat our 2030 target. Last year, Australia's emissions were more than 20 per cent below 2005 levels, while our economy had grown by 45 per cent over the same time period. The coalition's strategic basin plans and the National Gas Infrastructure Plan was also backed by more than $300 million of funding.

The government must put aside politics and support projects like the Beetaloo Strategic Basin Plan, which was introduced by the coalition. We also committed billions of dollars to the Northern Australia Infrastructure Facility, also known as the NAIF, which was being used to support the development of new gas supply projects. It is uncertain whether the new Labor government will support the NAIF with continued funding.

Australia must have a long-term plan for efficient and reliable energy. As the shadow assistant minister for manufacturing, this is one of the key issues that is raised with me, and the cost of energy is seen as the key handbrake on prosperity for many manufacturing businesses. Short-sighted bans on developing unconventional onshore gas are coming home to roost. The Labor government's dithering and naval-gazing are sending businesses to the wall and households choosing between heating and eating. But it didn't take the Albanese Labor government very long to break one of its central election promises, to cut household power bills by $275 by 2025. I remember seeing signage on election day that said they were going to deliver this $275 saving. They've been in government for well over 100 days, and no attempt has been made to deliver on this commitment. When they're asked questions about when they'll be providing this cost saving to Australian households, all they do is dodge the subject. The Labor government continues to treat Australians like mugs and is unwilling to talk about alternative energy sources.

Australia is faced with an energy crisis, and this side of the chamber is not afraid to ask questions and find solutions that will keep the lights on and save Australians from increasing cost pressures. That's why the coalition is willing to have a sensible and respectful conversation about nuclear energy. The formation of a coalition policy committee to explore the introduction of nuclear into Australia's energy mix was a clear indicator of the coalition's willingness to listen and learn, for the interests of all Australians. We have driven the need for this debate to happen, and the formation of the policy committee is a clear victory for common sense. It's disappointing the Prime Minister is unwilling to even have a discussion with the opposition. The Deputy Leader of the Opposition and member for Maranoa offered the opportunity for the Prime Minister to lead a national conversation on a nuclear energy. He wrote to the Prime Minister on 8 June 2022, calling for a national energy summit. The Prime Minister has rejected the deputy opposition leader's request and shown that the Labor government is not interested in exploring all possible future energy sources. We need a permanent solution to the energy crisis.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Stuart Robert (Fadden, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Gordon Reid (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

I would like to commend the Prime Minister, the Minister for Climate Change and Energy and the Minister for Resources for ensuring Australia positions itself as an energy powerhouse by supporting and accelerating renewable energy projects across Australia and ensuring we are harnessing new technologies to power Australia's energy demands. Not only is the government embracing renewable energy; the government is also taking urgent and responsible action to address domestic gas supplies now and into the future. In August of this year the Minister for Resources announced that consultations with the public and industry had concluded and that, following these discussions, the Australian Domestic Gas Security Mechanism, or ADGSM, would be extended to 2030. The mechanism was due to expire on 1 January of next year. We now have an important safeguard that can be implemented in the situation where our domestic gas supplies are forecast to not meet the demands of the nation. It is imperative to note that the minister is provided the most up-to-date advice from the Australian Energy Market Operator, the Australian Competition and Consumer Commission, industry and other government sources before making any decision on utilising the ADGSM.

The Albanese government came into office in May with a comprehensive climate and energy policy. We are now building on this, with all jurisdictions, to deliver much-needed long-term certainty to industry and investors. Business, industry and investors are all saying the same thing: domestically we need to upgrade the transmission grid and inject more into renewables. The government agrees, and we're all in. It's absolutely staggering that the opposition has the audacity to ask us about energy and gas, when they spent a decade in government and all they left us with was division, denial and no coherent energy policy. Australians have seen a decade of mismanagement of energy policy under the former Liberal government. This has cost us jobs. It has cost us growth and opportunities in the renewable energy sector. I'm pleased to be part of a government that is now demonstrating to the world that we are once again a nation looking towards the future and embracing the renewable energy opportunities that will come from addressing our energy supply issues and by acting on climate change.

An important step the Albanese government is taking to ensure Australians have access to reliable, cheap energy into the future is upgrading our electricity network so that it reflects the energy sources that are feeding electricity into it. As more renewable energy becomes available, our energy network needs to be able to distribute this energy more efficiently. By investing in our electricity grid and by fixing energy transmission, the government will achieve this objective and drive down energy prices for Australians. For example, in my electorate of Robertson I am pleased that we will benefit from one of many new community batteries that will be rolled out across Australia. These community batteries will harness solar power from the rooftops of nearby residents and have this energy stored, to be used at night. These community batteries are one component of a much larger Powering Australia policy, which will ensure Australia is diversifying our energy sources, reducing our emissions and making energy cheaper for more Australians. I can also report that, in Narara, where the new battery will be placed, there is already a strong interest as to how residents can get involved. Similarly, across many of the suburbs in my electorate, there are calls for more community batteries.

Australians are keen to embrace renewable energy and storage technology that will ensure reliable energy around the clock and help meet our emissions reduction targets. The Albanese government is also making sure that more Australians can realise the benefits of solar and is committed to establishing 85 solar banks throughout the country. Australians voted for a government that will invest in renewable energy, and that is exactly what the Albanese Labor government is doing. Again, I commend the Prime Minister, Anthony Albanese; the Minister for Climate Change and Energy, Chris Bowen; and Minister King for being responsible and ensuring Australia continues to have reliable and affordable energy but also for being future focused about the energy needs of our nation and of all Australians.

Andrew Willcox (Dawson, Liberal National Party) Share this | Link to this | Hansard source

WILLCOX () (): I rise today in support of the member for Durack's motion and to thank the member for giving me the opportunity to address this important issue. The people of my electorate of Dawson have grave concerns about the rising costs of living, especially rising energy costs. The recent ACCC gas inquiry report, released in July 2022, forecasts that the demand for gas for electricity generation will grow by 70 per cent next year and that gas supplies remain tight. In the 2022-23 budget, the coalition committed $50.3 million to accelerate priority gas infrastructure. This included funding for early works support to help accelerate seven priority gas infrastructure projects.

Our side understands that gas is a critical enabler of Australia's economy. Gas provides fuel that allows power to be generated 24/7, not just when the sun is shining or when the wind blows. Gas fired power stations can be ramped up and wound down and can be used to balance the record levels of increased supply from solar and wind. As I said in my maiden speech, I am a supporter of all energy options, whether coal or gas fired, hydro, solar, wind or nuclear. We need to provide power to businesses and households that is reliable and affordable in the best way that we can.

It blows my mind that, after over 100 days in government, Labor still have no plan to support families and businesses struggling with skyrocketing power prices. Instead of reminding gas suppliers of their obligation to domestic gas users, the energy minister can't even tell the Australian people whether he supports the new gas supply. The coalition has a fully costed national gas infrastructure plan to invest in new gas pipelines and support the development of new gas projects. The energy minister has called the plan BS and a fraud. But I would like to remind the House that the Labor Party repeatedly told the Australian people, and particularly the voters in Central and North Queensland, and the good folks in my electorate of Dawson, whose jobs rely on gas and coal, that they would not do deals with the Greens. But, since coming to government, we have seen the energy minister caving to Green demands on their climate change bill and failing to commit to a position on new gas projects. Labor have even promised 97 times since December 2021 that, if elected, they would reduce Australian household power bills by $275—that's $275—and all we're hearing now is crickets.

Australian families and businesses are struggling with soaring power prices and mounting cost-of-living pressures. Everyone on our side of the House knows the answer to reducing higher prices, and that is to bring in more supply. But it just seems that the anti-gas, anti-coal, anti-regions, anti-small-business, anti-ag and anti-commitment Labor government cannot bring themselves to displease the Greens. So it will be all Australian families and small businesses that will continue to suffer and live in fear of these rising costs.

The people of Dawson are not fools. They know that this government does not have their best interests at heart. The government needs to honour its election commitment to cut power prices, as promised, and provide a plan to respond to the east coast energy crisis, without further dithering and without further delays.

Meryl Swanson (Paterson, Australian Labor Party) Share this | Link to this | Hansard source

As the member for Paterson, energy is my business. No electorate knows better than mine that it is vital that we continue to power our industry, that we continue not only to allow people to put on the aircon on 44 degree days but also to support industry and, more importantly, investment in energy. And that's really been the problem over the last 10 years. We just haven't had the level of investment in energy that is required. The former government turned its back on it, turned its back on the opportunity that was coming down the line when we had a chance to really grasp it—and it was a nettle, but we had the chance to grasp it—and say, 'No; Australia can be better.' The former government didn't do it.

Tomago Aluminium sits in my seat and it uses 12 per cent of the energy in New South Wales. It employs a thousand people directly and 5,000 indirectly. But, more than that, it acts as a battery for New South Wales. When there is a situation in New South Wales where we do have a drain on energy, Tomago gets the phone call. It gets asked to curtail production. In that way, we can keep the hospitals running, keep the industry going and keep the aircon on across New South Wales and the eastern seaboard of Australia.

I am proud to be a strong voice for industry and energy in this place and even prouder to be part of a government that knows Australia can be better and that it can be an energy powerhouse. It is such a relief that, after a decade of denial and a decade of delay from the former government, we are in charge and we're, quite frankly, taking care of energy business. We understand that gas plays an important part in the energy mix in powering communities.

Gas is critical to our transition for industries and manufacturers. In my home town the Kurri Kurri gas plant is currently being constructed, ensuring that supply is continuous and reliable. It is necessary and it does look to the future, with hydro and hydrogen coming in future years. I do take a moment to thank my friend Paul Broad for his contribution at Snowy Hydro and beyond, and for his advice and counsel over my tenure in the energy sector as the member for Paterson. I acknowledge the former minister's endorsement of that and thank him very much for that.

The Albanese government came to office in May with a comprehensive climate and energy policy, and Australians supported us. That's the long and the short of it. Australians want reliable energy and they want cheaper power. But, more importantly than that, they want to maintain our standard of living, they want to keep their jobs, and they want to be able to service their mortgages and send their kids to school and have a good life. They know, as part of that, it is vitally important that every industry has access to reliable and, most importantly, affordable energy. And they know that good policy will drive prices down. It will provide certainty for that investment.

We have come into office with a comprehensive plan. We want to rewire the grid. We know the grid doesn't stack up at the moment. It was built for 1980s centralised power. More and more across the country, people are embracing renewables. We know that it is a very divested grid now. We know that the energy landscape across Australia is different. We have to have a grid that can cope with that. We also have to have policies that encourage investment in energy but that also encourage the businesses that are actually going to drive the innovation to keep making things, keep employing people and keep the lights on.

It will be interesting, as we emerge in the next 10 to15 years as this superpower, to look back on this time and remember the comments made by those opposite and to see how, really, they have not only delayed and denied but also talked our country down at a time when we need to be talking it up as much as we can.

Keith Pitt (Hinkler, National Party) Share this | Link to this | Hansard source

T () (): It's always a pleasure to follow the member for Paterson—one of the few on that side who is relatively sensible, I've got to say. I rise to support the motion. There are some fundamentals around gas in Australia, there are facts around gas in Australia, there are deliverables around gas in Australia and then there are the premiers and their decisions around gas in Australia. We have only to look at Victoria to know why there is such a challenge in Victoria and such a shortfall in gas; it's because they've had a moratorium on exploration. If you do not explore for more gas, you will eventually run out. These are the fundamental propositions of how it works. You have a resource which has a finite life which will eventually run out.

The Bass Strait has been a great boon for Australia and it has been an incredible boon for Victoria, particularly for Victorian manufacturing, because it has meant not only the availability of oil to go into Australian refineries but also the availability of cheap gas that is geographically located very close to demand, which has built up in Victoria over a long period of time. Bass Strait is now coming to the end of its available life in terms of its deliverables. There's still some more that can be milked out of the Bass Strait, and there are a number of companies out there looking at those opportunities which will add on to gas in Victoria. But the fundamental concept being put forward by those opposite and others—that you can take gas from 2,000 kilometres away, at the Gladstone export hub, and put it into Victoria and still have the same price as when you were taking it from Bass Strait just down the road—is completely flawed. It cannot be done. It is physics. If you have to transfer gas, whether that's via a pipeline or via other mechanisms, it adds costs. This is very, very basic economics. It adds costs. I say to those Victorian manufacturers that utilise gas: if you do not get the state government on board to deliver and develop more of your own resource, you are going to have challenges into the future because, quite simply, you cannot supply into the future at the same rate and at the same price as you've seen out of Bass Strait and elsewhere for so many decades.

There is not a shortage of gas in this country; there is gas everywhere. In fact, we are one of the highest exporters of gas in the world. We have great demand for Australia's resources, but we have issues around where it is geographically located. We in the previous government worked very hard to deliver things like the Beetaloo Basin—one of the biggest gas plays on the planet right now. What did we strike? We didn't strike resistance; we struck opposition from those who were then in opposition. They couldn't even bring themselves to vote against a motion in the Senate looking to stop the work that we were doing to bring this gas on earlier, because we knew there would be demand. So for those opposite to stand up and say that it is all the coalition's fault is purely wrong. It is complete nonsense. We have looked to deliver gas in the Beetaloo. In fact I, as minister, signed off on any number of projects and exploration permits in offshore, as is the responsibility of the minister.

I have to give credit where it's due. At the moment, Minister King is making good decisions for the country around the resources sector, and you need to maintain that stability. What we've seen in places like Queensland is the Labor state government making decisions on royalties without consultation, imposing them straight up on industry and taking billions of extra dollars. That affects a company's ability to make decisions, including final investment decisions, and it affects their ability to make long-term planning strategies around where they will put capital, because capital will move. In fact, I had a discussion with a number of individuals this morning from the sector. They are looking at South America because it is more stable and because they have fewer issues around changes with regulation and with taxes and royalties. For onshore coal in Queensland, we now see one of the highest royalty rates and taxes in the world. Who pays that price? Well, it is regional Queensland, because those new projects will be in those locations, and that's where those jobs will be, and that's who'll pay the bill.

We hear about bills all the time, but what we don't hear about from those opposite anymore is the $275 reduction that they promised at the last election for the Australian people. Yet we continue to see electricity prices increase. The reason for that is pretty straightforward: we're not generating enough capacity to meet demand. When there is a shortfall, it drives up the wholesale price, which drives up the retail price for consumers. I say to those opposite that one of the most important things that need to be done is to keep the lights on. If we cannot provide reliable, affordable energy in this country, whether it's through gas or electricity, then manufacturing will leave, and we need to maintain that manufacturing base. It is critical for our national security, and it is in our national interest to maintain it. I'd suggest they get on with doing just that.

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on this motion, a motion that's very interesting. It's ironic that the opposition has the gall to criticise this side about energy and gas. When you look at the past 10 years, the last decade, you see that they've spent a decade in government and all they left was division, denial and no coherent energy policy. In fact, we saw 22 failed policies that got us nowhere. The lack of any policy framework stifled investment and slowed the uptake of renewables. Why would you want to invest if there is no solid policy framework? After 22 failed policies, no-one would want to invest in this area. We could have been in a much better position to deal with this crisis today had the government dealt with it in a way that was coherent and that had a framework. But no—22 policies and division on their side in this area.

So we've been left vulnerable and more exposed to high global gas and coal prices. The previous government knew that electricity prices were skyrocketing. The former energy minister, who is now the shadow Treasurer, even ordered that the information be hidden from the Australian people. In fact, the previous government knew that energy prices would be going up on 1 July 2022 and hid that information from the voters until after the election. So it seems a bit rich that the opposition now choose to be indignant about something that they not only contributed to and created but also hid from the Australian public. A decade of denial and a decade of climate wars—this is what the previous government left us with.

The best way to reduce energy costs is to increase the use of renewables. The science is unanimous about that. Instead of taking action, the previous government did nothing but quote the same line over and over again. That line was, 'The sun doesn't always shine and the wind doesn't always blow.' How many times did we hear that from the then government? Too many times, and it was just blatant scare tactics, because we know that renewable energy is the future of this nation and, in fact, the future of our earth. We know that it's the best way to ensure investment in renewables, and it's consistent and reliable policy-setting that will do that.

We've seen that in my own home state of South Australia. At the end of last year, South Australia sourced an average of over 100 per cent of its electricity from renewable power for 6½ days straight. This is a record for South Australia, and it's likely a record for all comparable grids around the world. This is thanks to my state's clear and constant—and bipartisan, I must say—commitment to renewables.

Energy prices will be cheaper under our policies, but we know it's not going to happen overnight, especially considering the inaction of the past decade. Our Powering Australia plan will drive investment in more low-cost firmed renewables, and it's estimated to bring on 82 per cent renewables by 2030. We will put downward pressure on power prices by getting more of the cheapest form of energy—firmed renewables—into the energy market.

We also want to unlock our world-class offshore wind energy potential. We will be commencing consultation on six proposed regions with significant potential. Just one rotation of one offshore wind turbine provides as much energy as the average rooftop solar installation generates in one day. We are absolutely committed to renewables. We understand that this is vital to tackle climate change, but it's also vital for our economy and energy market. Compare that to the former government. Who could forget the assertion that electric vehicles will end the weekend? That is what we were hearing. Who could forget the 22 failed energy policies? Who could forget the decade of inaction? Who could forget the billions wasted with nothing to show for it? Australians deserve a government that will protect their future, and this is a job that we take extremely seriously.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.