Milton Dick (Speaker) Share this | Link to this | Hansard source

I have received a letter from the honourable member for Fairfax proposing that a definite matter of public importance be submitted to the House for discussion, namely:

This Government's failure to deliver its promised $275 cut in power bills and the damage this is doing to Australian families and businesses.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places

Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

As if middle Australia wasn't already doing it tough enough—higher prices, higher taxes and higher mortgages—it's just about to get tougher yet. Much of the pain felt by middle Australia—these are everyday, hardworking Australians—is a direct consequence of the failed policy experiments of the Albanese Labor government. Over the last 12 months the country has been changing, and so too has the way of life for everyday Australians as they come to appreciate the impact of a Labor government.

This transition from a coalition government to a Labor government has reinforced differences between Australia's two great governing parties. For the coalition, we believe in small government. We believe in freedom of the individual. We believe in the importance of family. We believe in empowering local communities, and we believe in small business, free enterprise and entrepreneurship. When these values underpin the government of Australia, middle Australia wins. People's lives improve, family budgets get easier to manage and younger generations have more opportunities to get ahead, to buy a home and to make ends meet. But when the Labor Party is in power, as it is now, all this goes out the window, because what the Labor Party believes in is big government. Individuals, the family, the local community, businesses, enterprise, entrepreneurs—all out the window because all that matters to Labor is big government. This is especially the case when it comes to the energy system, where Labor believes not only in big government but also in big promises.

Despite the coalition reducing power prices under its watch—in fact, in the last term of government alone, power prices went down by eight per cent for households, 10 per cent for businesses and 12 per cent for industries. But still the Labor Party went to the last federal election promising the Australian people they could get these power prices down even further than that. They made a promise, and they made that promise no less than 97 times before the election. They were so confident about it that even after the invasion of Ukraine they kept it going. If you go to the Australian Labor Party's website today, sure enough, that big promise is still there. The question I know you are asking yourself, Deputy Speaker Claydon, is: what was that promise? I'll give you a hint. The promise was about household power bills. Labor promised to reduce household power bills by—guess how many dollars? Have a guess. $275. That's right, Labor promised to reduce average household power bills by $275.

Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

How's that going?

Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

How is that going, Member for Page? How is that going? It's failing and failing miserably. And guess who's paying the price? Middle Australia. The same people who were ignored in the recent federal budget are the ones who'll be paying the price. These are everyday Australians who aren't recipients of government payments. In fact, they don't even want government in their lives. We're talking about the tradies who get up early every morning to make sure they're on site on time. We're talking about the bakers who are moulding dough before the sun even rises. We are talking about the cafe owners who get to the shop early to set up. This is middle Australia, people who don't ask for anything from government but for government to get out of their way so they can live their lives. But they won't get that from this Labor government because this government believes in big government.

Since coming to office, the Albanese government have inserted themselves at the centre of Australia's energy market. With their unprecedented market interventions, the government now call the shots. They are the ones picking the technologies because they think they know better than the engineers, than the economists on how the industry should run. They don't believe in a balance of technologies like the coalition does; they don't believe in having an all-of-the-above approach like we do. Rather, they pick their favourites. But they also know the technologies they wish to demonise, and those they wish to demonise they restrict supply, or they seek to turn supply off.

We know the result already from these massive interventions. We know that already we have gas at extraordinary prices throughout this country. We know that prices continue to rise for every single electricity user in this country. And we have our trading partners, some of our most important long-standing trading partners, now, for the first time, looking at Australia as a sovereign risk because Labor are demonising the very resources they rely on—and they are the same resources we rely on here for our own energy system.

But here is the thing: if you want to be 'big government' and insert yourself or put yourself at the centre of the energy market then you can't have it both ways. You can't then blame someone else when electricity prices go up. If you want to be at the centre, if you want to call the shots, then you have to cop it when the prices go up—and the prices are going up. When government empowers itself, especially with a very, very visible albeit incompetent hand in the market, it is to blame when prices go up.

Now, let's check out how they are delivering on that $275 promise. To date, instead of power prices coming down by $275, under this Labor government they have risen as high as $500 for average households. Think about this. You have power prices, Labor says they're going to reduce them by $275, but it goes up by $500. That means there's a $775 difference between what Labor had promised them they would pay and what they actually have to pay. That is the price of a broken promise.

But the thing is, that's only the broken promise as of today. The real problem now for those people of middle Australia, hard-working Australians, is when they woke up this morning, they found out that it's going to get even worse because the default market offer said on 1 July it's going to get even more expensive. For those in the DMO jurisdictions, we are looking at average prices going up by around 25 per cent. For some households, the price increase will be as high as $600 a year. For some households there is a difference of $800. When you are talking about what Labor had promised those households and what they'll have to pay, it's a difference of around $1,400. That is the cost of what Labor is doing here.

We can talk about numbers all we like, but there's a human story here. It's the human story that worries me most. We have 82,000 families in this country who are already on hardship programs. That's only going to get worse. If we think of last winter, we had stories of senior citizens who had to make a decision about whether or not they could turn the heating on or put food on the table. Will any of the Labor members who will speak today guarantee seniors that they will not have to make that tragic choice this winter? Behind these numbers lie the human stories of middle Australians that are struggling. The fact that this government did not have a single measure in its recent federal budget to assist middle Australia is a disgrace. These higher prices are on them. They have broken a promise and they are only making it harder for middle Australia.

Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

We are a government that is committed to providing cost-of-living relief for Australian families, particularly when it comes to their power bills. We took urgent action to shield Australian families and businesses from the worst of the energy price spikes. Our energy relief plan is providing targeted energy bill relief and, very importantly, investing in cleaner, cheaper energy for the future. Meanwhile, those in opposition, the Liberals and the Nationals, voted to make power bills higher for families. They had an opportunity to assist Australian families, but they voted against it.

The reality is that we are currently dealing with the most significant shock to energy markets in 50 years, due to Russia's prolonged attack on Ukraine. We know that global energy market disruptions have become more pronounced and are persisting longer than anticipated, and so are our domestic energy market challenges, which have all been made worse by ageing electricity assets and the decade of inaction and indecision by those opposite when they were in government. This is why our action as a government has been so incredibly important. We know, and the final default market offer confirms, that the Albanese government has limited the worst of the energy price spikes while investing in a long-term plan to get cheaper, cleaner energy to all Australians.

The fact is our government has taken action to take that sting out of power prices and invest in the cheapest form of energy, renewables, because that's what the country voted for. One of the many reasons they voted against the previous government was its consistent inaction on climate change. But we are delivering on our commitment to take action because we are really focused on transforming Australia's economy to a low carbon economy. We are taking action to ensure Australia is positioned to become a renewable energy superpower. Of course, in our recent budget we had critical investments to save Australians money on their energy bills and invest in nation-building new industries. For too long our country was left behind the rest of the world because of the inaction of those in the opposition.

In addition to targeted household rebates to provide energy bill relief, our recent budget is funding a plan to ensure households and communities can take advantage of the savings from smarter energy use and ensures that our nation is really prepared to capitalise on the global boom in clean energy investment. We're doing that through a whole range of measures. Targeted power bill relief is so important to families who are dealing with cost-of-living pressures at the moment. It was part of a huge cost-of-living suite that we put forward in the budget. This is something that they failed to do.

None of these investments, in terms of our long-term prospects for transitioning our economy, were done by them. They took no action when it came to climate change. They failed to do it the whole time they were in government. Let's have a little bit of a look at their record. Shall we run through some of their record? It's quite a lengthy one. They voted down $1.5 billion in direct bill relief for those Australians who needed it most. They voted against price caps. There have been so many. We know the member for Hume hid the price rises before the election and then misled Australians about it, and all of us here remember—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Is this a point of order, Member for Herbert?

Phillip Thompson (Herbert, Liberal National Party, Shadow Assistant Minister for Defence) Share this | Link to this | Hansard source

On standing order 90, on reflection: the member for Hume has leave from this House to attend to a family medical issue. Many of those opposite are aware of this. I think the minister should immediately withdraw the remark and apologise.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Minister, I didn't hear your comment, I'm sorry.

Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I was not aware of the member for Hume's personal issue. My statement was in relation to his role as a minister in the previous government. But I'm happy to move on and talk about the more than 20 failed energy policies that those across the aisle had when they were in government. I was in fact here and saw many of them. Every week we'd have a different policy from those ones, never actually landing on one.

Now, in opposition, we do seem to have them landing on a policy in terms of climate change, which was recently released. What is it, yet again? Nuclear power. Here we go! That seems to be their only approach in terms of energy when it comes to climate change. Can I tell you that many people in my community are totally opposed to that. We know that nuclear power is (1) too dangerous and (2) too expensive. Yet again they are trotting this out, but I can tell you that in my community and across the country people are extremely opposed to nuclear power. That seems to be the only idea they have come up with over this long period of time. One of the worst things the former government absolutely refused to do was to invest in the cheapest form of energy—renewables. It took a Labor government to do that. So many communities suffered for so many years, particularly rural and regional communities, with that inaction.

We are very proud as a government to be taking decisive action when it comes to acting on climate change. We're proud that we have legislated Australia's target of a 43 per cent reduction in emissions by 2030, along with net zero by 2050, and that we're supercharging new offshore wind industry and delivering the $20 billion Rewiring the Nation investment to decarbonise our grid and take us to 82 per cent renewables by 2030—a whole range of measures that we have put in place that we are incredibly proud of. We're doing that because we know it's so important to invest in renewables.

We absolutely have to be doing that, because Australians deserve protection from the worst impacts of climate change. It certainly is an issue in my electorate. When it comes to those opposite not acting on climate change, it is a big issue. Last year we had the devastating floods. It is often very hard to articulate the devastating impacts of natural disasters like that. We see this inaction on climate change from the previous government. We know how important it is to act, and we have been acting.

We have been acting through a whole range of measures when it comes to providing cost-of-living relief for Australians. One of the most important areas where we have done that, as I say, is in power bills, and there are so many other ways as well. Right across the board we have done that, whether it be increasing—in fact tripling—the bulk-billing incentives, reducing the costs of medicines or increasing many other allowances as well. We have brought in a whole range of measures to assist Australians. We do understand one of the biggest pressures is, of course, power bills. That's why we've had so many different initiatives.

I find it remarkable that those opposite come in here and make these grandiose statements, when in actual fact their inaction often is what led us to this point. They persist in voting against any measures that will actually help Australians get ahead. I don't think they can really comprehend just how hard it is for Australians who are struggling at the moment and who need assistance. That's why our cost-of-living measures, which are so extensive, have made such an important difference. Look at our electricity bill relief. Up to $3 billion of that goes to assist people. We're working with the states and territories in terms of providing that. It will make a huge difference day to day, because people are in fact struggling.

As I say, action on climate change is something that we are absolutely committed to. We made that commitment before the election. We have followed through on that with very comprehensive measures in terms of our investment there. Yet, again, all we ever see and all we ever hear from those opposite is about nuclear energy. They just keep pulling that out. Take that to the next election and see what people say—particularly people in coastal areas like mine. They know that's where you'd have to be building it, and I can tell you that's an issue that people are completely opposed to.

In my community, people are very positive about the initiatives of the Albanese Labor government when it comes to this really strong action, particularly investment in renewables. What a great achievement that will be for our regional areas to have that investment, not just in terms of those environmental impacts but, very importantly, for the economy and for jobs in those regions. I know that's something people in my area and right across the country are very optimistic about. We can become that renewable energy superpower, and we can provide support for our regions as well, particularly in terms of their economic growth.

All of that combined with our policies is making a huge difference to Australians who are, as we know, struggling with cost-of-living pressures. In our budget we have taken decisive action when it comes to that, particularly in relation to power bill relief. I would sincerely hope that those opposite perhaps reflect on the fact that they have opposed measures we have put forward to assist people with their power bills. They should in fact be voting with us to support people, support Australian families who are struggling. On this side, we do support Australian families who are struggling through a whole range of initiatives, as opposed to the Liberals and Nationals, who have failed to do so time and time again.

Anne Webster (Mallee, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

I believe keeping a promise is a sign of integrity. Those who are elected members in this House hold positions of privilege, and it is incumbent upon each of us to fulfil our promises—much more so from a Prime Minister. When he breaks his promise, the nation has a right to hold him to account. The Prime Minister and the Labor government had failed to deliver their promise of a $275 cut in power bills. They made that promise 97 times before the election, a promise that was reiterated even after Russia's invasion of Ukraine. Honesty should motivate the Prime Minister to stop using this as an excuse for energy prices rising.

Alarmingly, today we find that households across the eastern seaboard are about to be hit by a further 25 per cent hike in energy by 1 July. You don't need to be a rocket scientist to work out the damage this will cause to family budgets and businesses. Labor's budget relief is a bandaid solution for a gaping wound experienced by middle Australia. Families already struggling with skyrocketing mortgage repayments and rents will be put under more financial pressure as they struggle to make ends meet. Mallee families are trying to work out whether they will be heating or eating this winter; keeping their kids warm or putting food on the table. Businesses are reducing their productivity because energy bills are making it impossible to grow and manufacture at full capacity. This is disgraceful, and the blame lies squarely at the feet of this Labor government and this Prime Minister.

I have spoken about two Mallee businesses in this chamber recently. Mildura Fruit Juices Australia is a big manufacturer and exporter in my electorate, Australia's largest independent processor of fruit juices. I recently toured the plant with the general manager, Hugh Baird, who told me his company has had to reduce its intake of grapes this season due to the now unviable energy costs to evaporate the grapes into concentrate following a $500,000 price hike in electricity. That is before today's announced price hike. They are continually investigating energy options with little to no commercial alternatives and very little government support. These options include biofuel production, solar energy and other renewables, but to no avail, as there are very few commercial alternatives to the energy required for steam generation and freezing. They would need the equivalent of nine soccer fields worth of solar panels to meet their needs.

When I raised the plight of Mildura Fruit Juices Australia in this chamber, I got a political response from the Prime Minister and his energy minister. While the Prime Minister blamed the coalition for voting against Labor's energy policy, the fact is that Labor's energy legislation actually passed this parliament and has not made one jot of difference. In case he is unaware, businesses are still hurting. The energy minister is completely disrespectful to all those businesses who are drowning in energy costs, claiming an average energy price saving of $1,670 for Victorian small businesses while ignoring the real $500,000 hike that I raised in my question about Mildura Fruit Juices' experience.

While Labor play politics, their policies are closing businesses—policies such as this government's market intervention into gas. In the south of my electorate, Mortlock Hydroponics has been a tomato grower near Carisbrook for more than 20 years. They supply tomatoes all year round to the major supermarkets, as well as markets in Sydney and Melbourne. Ian Mortlock has told me the only gas contract he could get last June was for $40 a gigajoule, a 400 per cent rise on his previous contract—400 per cent. If Ian had continued with the same gas usage after June last year, his bill would have equated to $1.7 million. To avoid closure and laying off 35 to 40 staff, Ian's operation just used less gas. He reduced his productivity by 40 per cent. How is that helpful to businesses in Australia? It is a crying shame that this government needs to take full responsibility for.

Josh Wilson (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

There's no doubt that Australians are managing cost of living pressures, including pressures from energy prices. It's hard to see how they'll be assisted by the kind of carry-on that this debate represents. They suffered through nine years of a dishonest and incompetent government, and that incompetence was shown in the former government's carriage of energy policy as clearly as it was shown in any other area of their maladministration. Now Australians are suffering through 12 months of a dishonest, hopeless and, frankly, pointless opposition.

The member for Fairfax almost beat his chest and made a point of saying how they are all about small government. I think he was being a bit modest, because what we saw from those opposite over nine years was a lot more than small government. It could barely be described as minuscule government. It was very close to zero government, and in some cases I think probably even less than zero.

Ted O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

We kept prices down, Josh. That's what the MPI is about.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Member for Fairfax, you will be asked to leave if you keep interjecting.

Josh Wilson (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

This is the lot that, in nine years, saw three gigawatts of energy generation come out of the system. The people who talk about the importance of supply couldn't deliver one additional watt of energy generation through their time. They had 22 goes at a national energy plan—

An honourable member interjecting—

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I'll make you stay for admitting that.

Josh Wilson (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

the one thing that might have made a serious contribution to putting us in a better position. They couldn't land a single one, yet they come in here and try and point the finger at us and make political hay from circumstances that are causing pain and difficulty for Australian households.

People in Australia won't be fooled by that. Those opposite sought to take them as fools for nine years, and Australians have had a gutful of that. They've had enough of that, and they've chosen something different. They now have a government that is responsible and responsive. Facing the energy price rise circumstances which are fuelled by the war in Ukraine and based on nine years of hopelessness, incompetence and dishonesty, we are doing practical things to alleviate that pressure right now, and we're doing a set of things to put Australia on a much better footing for affordable, reliable power in the future.

The Energy Price Relief Plan, which my colleagues have spoken about, started last year and continued in the budget. It is capping coal and gas prices and delivering specific relief to households. In my state of Western Australia, what would have happened but for the intervention of this government would have been a relatively modest increase in prices, because, of course, we have an enlightened gas reservation policy in Western Australia that a former state government put in place, which means that Australians actually get the benefit of the resources that belong to all of us. It's a shame that that kind of foresight wasn't applied more widely. As a result, the projected price increase in Western Australia was only going to be 2.5 per cent, which is pretty modest by Australian standards. In fact households, as a result of our Energy Price Relief Plan, will get cost reductions to the tune of 18 per cent, and that will make a difference to people at a time when they're doing it tough. That same impact is being shared across the country. It's something that we began introducing late last year and we've continued with this budget.

That was voted against by those opposite, every single time. So, when they come in here with their stories about a business or a household, we know that, in each and every case, they haven't had the courage, when they've gone and spoken to that person who's said, 'I'm under this pressure,' to say:'Well, to the extent that the current government—after nine years of zero; after nine years of less than nothing—is actually taking steps to improve your circumstances, I voted against it.' And they never, ever have the courage to face up to those householders or businesses and say: 'We have stood in the way of some relief that you desperately need.'

But we're doing more than that. It's not just about relief in the present; it's about our energy system as a whole. We are investing in renewables—as the minister said earlier today, investment is up by 55 per cent—because we know that renewables are far and away the cheapest form of new energy generation. We're investing in storage, with the community batteries program. There's $20 billion for rewiring Australia. And there's the new Hydrogen Headstart program that was announced in the budget. All of these things are about our energy future. All of these things are about low-carbon energy at the cheapest price and delivering Australia much greater control and sovereignty over our energy needs going into the future.

Interestingly enough, the member for Fairfax didn't get on his nuclear hobbyhorse. We didn't hear, though we may yet hear, from the yellowcake brigade; we may yet hear from the recreational fissioners in the coalition, who want literally the slowest, most inflexible, most expensive, most dangerous form of energy. That's their one bright new idea. We didn't hear that, but maybe we will right now. (Time expired)

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

In the 2019 election, the Australian people heard all about the bill that Australia couldn't afford. And they knew it was the wrong bill. They knew they didn't want that bill. They didn't want to see that bill. They couldn't afford that bill.

But, I've got to say, unfortunately, we got it wrong. The bill that the Australian people can't afford is the bill being provided by this federal Labor government and this Prime Minister, Anthony Albanese, because electricity prices are not going down. They are going up. What is going up is taxpayer-funded subsidies—that is all.

We've seen, today, news on the default market offer saying that the cost of electricity will increase by 20 per cent plus, across the board, on the east coast. But, in a matter of some inconvenience—I know it's inconvenient for those opposite and for the government—quite simply, that is just one increase. It doesn't include all the other increases that have already happened. We saw the Australian Bureau of Statistics say that, in Brisbane, in the March quarter alone, electricity prices in the south-east had gone up by 32 per cent plus—already—plus this 20 per cent increase.

But, as to the idea that it will be fixed by a taxpayer-funded subsidy in a one-off bill—or maybe a second bill; perhaps it'll be split over two quarters; who knows!—the reality is: it is only for selected individuals; it is not across the board. It is not a reduction in electricity prices.

Power prices are out of control. That impacts the entire economy because, if you are a farmer and you have irrigated agriculture, the cost of your production is going up and up and up. If you are using fertiliser, as they all will be, the cost of that is going up and up and up, because it is directly linked to the cost of energy. So, from the production of food all the way through to cold rooms and to delivery, whether it's from one of the majors or not, this is costing every Australian more, whether you are in business, whether you're running a medical practice, whether you have a warehouse—it doesn't matter. The increases in electricity costs are flowing straight through to the cost of living.

The impact is enormous. We've seen reports in the last few days that the humble loaf of bread is up by as much as 70 per cent. People cannot afford to pay these types of increases—they simply cannot.

And what did we see from the Minister for Climate Change and Energy in his press conference this morning? Well, we saw him howling at the moon about nuclear! I mean, the questions were quite ridiculous: 'What will you do with the waste? Where will you put the waste? How will you manage the technology?'

Well, I've got news for the minister: the Australian people are getting this anyway. As to the AUKUS arrangements on nuclear submarines, you will put the waste in exactly the same place as you will put the high-level radioactive waste from a nuclear sub in 30 years time when those things come to the end of their operational life. The technology is already there. It is being delivered in Australia. Almost everything about nuclear technology has to be provided as part of the defence agreement, apart from the location. The idea that you could put a nuclear reactor in a very sophisticated tin can 200 metres under the ocean, full of Australian submariners doing a great job for our country, but you can't put it on a block of concrete in the most stable nation in the world—well, that is just hypocrisy. And those opposite know; they absolutely know—

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Where? Where's it going to go?

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

I'll take the interjection, because what we know from those opposite is they seem to be not committed. You are either in on this deal or you are not. You will deliver all of the things you need for technology around nuclear because it is a necessity for the agreement. So face up to facts, those who are opposed. This debate is over. It will be delivered in Australia.

We hear about costs from Labor's long-term plan. It's a long-term alright because, quite simply, 28,000 kilometres of transmission, which has a direct return, a fixed-price return, that is paid for by electricity consumers—do you know how far that is, Madam Deputy Speaker? That 28,000 kilometres sounds like a number, but there's a thing for caravanners and those who travel around Australia called the 'big lap'. The big lap is a circumnavigation of Australia onshore, and it's 15,000 kilometres long.

Effectively, you will have to build transmission almost twice a circumnavigation of this country. And somehow you're going to do that in what time frame? Not very long—without easements, without approvals, without environmental approvals, without an approval from anyone else that you need; whether it's local government or state government, it doesn't matter. The money you have put aside, $20 billion—even AEMO says that is nowhere near enough. It does not cut it. You are tens of billions short. The only thing it can do is drive up the price of power, because it is a regulated cost paid for by electricity consumers. It will impact every single user in Australia. From small business to big business, from pensioners to those hardworking taxpayers, they are getting robbed by this Labor government.

Tracey Roberts (Pearce, Australian Labor Party) Share this | Link to this | Hansard source

It is plainly wrong for those opposite to claim that the Albanese Labor government has not delivered on its promise to cut electricity bills by $275. Wrong. We absolutely took urgent action to shield Australian families and businesses from the worst of energy price spikes through a carefully developed plan. Our Energy Price Relief Plan is providing targeted energy bill relief and investment in cleaner cheaper energy for the future, because we are a government that cares. We care about the environment. We care about the budget of Australian families. We govern to make the lives of all Australians better.

In contrast, the opposition voted to make power bills for families hundreds of dollars higher than they need to be. They voted against electricity price relief. They said no to that, no to helping families and businesses. And today we heard Clare Savage, the chair of the Australian Energy Regulator, say that power prices are much lower than they'd expected. The regulator said, 'We have seen a very substantial decrease in the price of contracts since the intervention in the coal and gas market, a decrease of 40 per cent compared with October last year. Clare Savage also said that it is important to keep investing in new sources of renewable energy so that we can keep moving forward, away from fossil fuels.

This is why the Albanese Labor government is doing what they are doing. The final default market offer, the DMO, confirmed the Albanese government has limited the worst of the energy price spikes while investing in a long-term plan to get cheaper, cleaner energy to all Australians. The increases in DMO prices are up to $492 lower than they would have been without the government's intervention for residential customers. We are on the right track. We are making decisions that help ease the cost-of-living pressures that Australian families face.

The world is a challenging place, and we are in the midst of the most significant shock to energy markets in half a century, due to Russia's prolonged attack on Ukraine. That war is wreaking havoc on energy markets around the world. That is why our Energy Price Relief Plan is so very important. Our plans on energy and renewable energy are practical and sensible. Renewable energy is cheaper energy. Yet those opposite have voted against every single dollar of bill relief and even said that they would go as far as repealing the actions we have put in place. That same Liberal-National coalition has left Australia with a trillion dollars worth of debt.

We are acting to fix the mess left by those opposite. We are dealing with the results of a decade of chaos, a decade of denial and a decade of delay in energy policy, courtesy of those opposite. That saw four gigawatts of dispatchable capacity leave the system, with only one gigawatt entering to replace those losses.

Australians are also dealing with the increasing energy costs that the previous Liberal-National government deliberately hid from them before the election. The previous government, including the former energy minister—the current shadow Treasurer—not only knew that electricity prices were skyrocketing; it also ordered that the information be hidden from the Australian people before the election. Shame!

The member for Hume amended the industry code for electricity retailers on 7 April, just three days before the election was called, to delay the release of increases in the default market offer for New South Wales, Queensland and South Around until after the election. The Albanese Labor government is looking after Australian families and businesses and is demonstrating that.

Around 90,000 small businesses in Western Australia that meet the definition of an electricity small customer will receive quarterly bill relief of $650 automatically from 1 July 2023. We are modernising the grid and building a system that works for 82 per cent renewable energy that will protect consumers from global market prices or disruptions in the future. We are working to create a strong foundation for a better future for Australians.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

Today, the poor long-suffering electricity consumers of my home state of South Australia have regrettably had confirmation that, if they're on the default market offer, the average household bill will go up this year by more than $500. What that means to many families in South Australia, as it does to families across the country affected by today's confirmation, is that they have to make some heartbreaking decisions about the family budget in the next 12 months. They have to decide whether or not to cancel the family holiday, which might be something they look forward to as a family every year. They have to make other sacrifices around the home, losing what's left of their discretionary ability to enjoy those comforts that are now just not affordable, because things like an electricity bill increase of more than $500 is a really significant impact on those families.

What those opposite have said to us is that those families should be grateful. They owe the Labor government their thanks for increasing bills this year by only $500. That is something that they should be applauded for, because apparently it could have been even worse than that. That is surprising because, during the election campaign that we were all pretty heavily engaged in and involved in, we all heard the now Prime Minister make a very solemn commitment to the people of this country that, if he were elected, electricity prices would fall by an average of $275. Let's be honest: that would have been quite appealing to voters. A lot of them probably wouldn't know the Prime Minister and might have thought it was a safe assumption to take him at his word, that someone who was seeking to lead the country and become Prime Minister would not say to the people of this country, 'Vote for me and I will reduce your power bill by $275,' and not mean it. That is a reasonable assumption for the people of this country, that, on something as fundamentally important as impacting the household budget, they could trust the alternative Prime Minister that he was telling the truth.

I give a shout-out to the poor old people at RepuTex. I feel for them. I don't know if they're still called RepuTex or if they're going to rebrand soon and get a new website, because they have really had it tough, thanks to their association with the now government's infamous policy and modelling to reduce prices by $275. I'm sure they really wish this would be taken down from the website and find some way of expunging any association in history with Labor policy because, of course, that costing is an absolute humiliation. That document says that, by 2025, power prices—and this was published in December 2021—compared to today, we've run the ruler over what Labor is going to do, and the good news is that the average residential power bill will fall by $275 come 2025. Now of course we have the situation where this year alone in my home state of South Australia the average power bill is going up by more than $500. There is a gaping difference now between what Labor said they would deliver and what the reality is for Australian families, and there are serious consequences with that.

As much as we have debates and make certain points in this place about the broken promise, the most important thing to the people of Australia is that they're suffering because of that broken promise. They're now having to make sacrifices and really difficult decisions in an environment where their real wages are declining at the greatest rate in my adult lifetime. On top of electricity prices, other prices are going up. Real wages are going backwards. Mortgages are going up. The price of groceries is going up. It's hard to make ends meet.

In this debate we could have the Prime Minister and others at least give an apology for what they said they would do and have subsequently not delivered. There's nothing more appalling than saying to the people of this nation, 'Vote for me and I will put this significant relief in place for your household budget,' and breaking that commitment and promise to the tune of increasing the cost that you said you would reduce. It is appalling. The people of this nation deserve an apology for that. The members of this government should acknowledge that that they have totally and utterly failed on that core promise they took to the last election.

Sam Rae (Hawke, Australian Labor Party) Share this | Link to this | Hansard source

The rank hypocrisy of these Liberals—their decade of Liberal government was an absolute litany of policy failures when it came to reforming our energy markets and introducing renewable energy. The entire rest of the world agrees that renewable energy is the future of energy supply and bringing down prices. Renewable energy is the cheapest way for Australia to power homes and businesses. The rest of the world is all over this. They've been investing in renewable energy for years in Europe, North America and across Asia.

These guys have their own wacky ideas. We've seen one of their former co-ministers sharing his personal views. I'm not quite sure the other members who were looking at their shoes during his contribution necessarily agreed with him on that fact.

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to this | Hansard source

They did have nice shoes.

Sam Rae (Hawke, Australian Labor Party) Share this | Link to this | Hansard source

They did. It's a wonder the member for Fairfax makes it to the chamber with the fluoride in the water these days and the chemtrails that prevent him from achieving his full potential. He comes in here with ridiculous assertions. After a decade of being in government they achieved nothing—and the problem was not so much the inertia but that they took Australia backwards, particularly in comparison to the rest of the world. They have hampered the ability of both households and industries to compete in international markets.

Of course he harked back to his days in the family bakery, but ultimately what is clear about the member for Fairfax and, indeed, all Liberal members opposite is that they have no real understanding of Australian families and businesses. We're not silly just because we're working people. We know what you guys did. We know that you let us down. We know that you failed to deliver a single sustainable energy policy in a decade. We know that you were too busy fighting amongst yourselves and turning over prime ministers. You didn't get anywhere. You let us down. Now we're playing catch-up. We're playing catch-up on prices. We're playing catch-up on building renewable energy infrastructure that serves our purposes now and into the future.

The member for Fairfax over there smiles. Mate, you're all sour and no dough. There is very little substance that gives anyone any confidence that you have the capability to serve in opposition, let alone in government. Maybe he's channelling his leader, the Leader of the Opposition, who went to the APPEA conference—and I'm not going to adjudicate on the pronunciation of APPEA; I'll leave that to others—and said, 'Just like Reagan, we will wind back government intervention.' They're going to wind back government intervention just like Reagan. I'm not surprised that the Leader of the Opposition wants to compare himself to fine American presidents and Ronald Reagan is the one he chose. Ronald Reagan was not my cup of tea from a political perspective, but he was handsome, erudite and remarkably popular. I think the Leader of the Opposition probably picked someone out of his league though.

The member for Herbert was here earlier, and it gave me cause to think, 'Who is that American statesman that the Leader of the Opposition most resembles?' I think it might be former president Herbert Hoover. Herbert Hoover was the president at the beginning of the great recession, and through it. He is widely considered to have been a failed president—failed his nation; failed his country. He exacerbated the impacts of the recession upon the people, particularly the working people of the United States. In fact, one historical source notes about his presidency:

Hoover's rigid adherence to conservative principles may not have been his greatest problem. A poor communicator, he came across as mean-spirited and uncaring.

That is a much better historical point for the Leader of the Opposition to compare himself to. He should drop the attempt at Reaganism, and he should think a little bit more about Herbert Hoover and what Herbert Hoover can do for him.

The very sad thing about Herbert Hoover is that part of his presidency was defined by his scapegoating of Mexican Americans, employing racism to defend himself and detract from his own economic and social failures during the Depression. (Time expired)

Zoe McKenzie (Flinders, Liberal Party) Share this | Link to this | Hansard source

I hate to bring us back to the topic of power bills and interrupt the member for Hawke's florid recollection of American politics, but nevertheless.

As if it were possible for Victorians to get worse news about the cost of living. Already the highest taxed state in the country, her residents are confronting the greatest cost-of-living crisis in living memory and now this—a 30 per cent increase in power prices. The Victorian Essential Services Commission will announce an increase in default power prices tonight, and Victorian households will be hit by a 30 per cent increase. A 30 per cent increase—I'm flabbergasted just saying it.

Interest rates for most households on fixed rates are coming to an end this year, and for households transitioning overnight from about two per cent to a roughly eight per cent, and rising, variable rate it will cost an additional $20,000, at least, in repayments every year. The federal budget will continue to drive inflation and support the likelihood of even more interest rates over time. Groceries are going up. Fresh food, clothes, shoes, school supplies are all going up. And now there's a further 30 per cent whack in power prices.

Even though most people feel they've already absorbed huge power prices in the last year, it's worth remembering that the Victorian default offer last year only rose by five per cent. This increase is six times that. Outside Victoria, the Australian Energy Regulator has confirmed prices will rise between 20 and 25 per cent from 1 July—higher than the draft offer that we raised and debated in March in this place, which was expected to be in the order of 20 to 22 per cent but came in higher.

Since March, the Energy Regulator has seen this government do absolutely nothing to address the surging cost of energy. Indeed, it has done everything to drive prices up by injecting huge uncertainty into energy projects around the country. As a result of this government's failed and still failing policies on energy supply and cost, electricity prices will rise between 19 and 24 per cent in New South Wales, South Australia and South-East Queensland. Victoria's Essential Services Commission will lift prices by 25 per cent. The price increases will all come into effect in just a few weeks time, on 1 July. This will affect 600,000 customers in South Australia, New South Wales and South-East Queensland who are on the default offer, which is supposed to constrain huge price rises for households and small business alike. Following the blow of a budget which did nothing to help small business, in fact it took away many of the supports the former government had put in place for small business, small-business customers are now facing increases of around 15 per cent and up to 30 per cent in their energy prices.

In opposition, this government misled the Australian people. Nothing they said in the 2022 election campaign would have left any voter thinking things could possibly get worse—indeed, so much worse—in terms of affordability. The now Prime Minister promised us that the Albanese Labor government would reduce energy prices by $275, not increase them. Let me count how much they're going to increase them by. That increase will be up to $594 a year in New South Wales, $512 a year in South Australia, $402 a year in South-East Queensland and $352 a year in Victoria. But the Prime Minister promised them prices would be reduced by $275 not once, not twice, not three times, not four times, not five times, not six times, not seven times—you can see where this is going. He promised them 97 times before the election that the cost of energy would go down by $275. For a while now he's been saying it's all Russia's fault, but he kept making the promise about the $275 well after Russia invaded Ukraine.

I'm guessing most people in this parliament are not the person in their household who pays the bills. I do, all of them—less punctually than I used to, I have to admit, but I pay all of them. Let me tell you the story they tell—up, up, up, never down, not once. Like most Australian families, I open my bills with trepidation. The quarterly electricity bill for a household of five can deck you for a month or two. On all extra spending on the unexpected demands of life—a doctor's appointment, a dentist's appointment, a new pair of shoes because something broke, a school camp: if those costs pop up in the same pay period your electricity bill lands, you can forget it. Put it on the credit card and hope things ease up a little bit next month.

The government talks about energy and climate like it's a value statement—not the daily impact it has on people's lives in terms of affordability and making ends meet. There has been a callous disregard for middle Australia and their reasonable expectations, their outright need, for help, when the Prime Minister promised 97 times that prices would drop.

Andrew Charlton (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

Across Australia, many people are suffering the effects of higher power prices. This is an important issue that affects small businesses, families and everyone across the country. There are three questions to consider. First of all, what has the government done to assist Australians with power prices? Secondly, what's been the effect of this action? And, third, what's the alternative; does the opposition have any better plans?

Let's start with what the government has been doing. Since we came to office, we, first, intervened directly in the market to assist Australians with energy bills. The energy price relief plan put temporary caps in place in the electricity and gas markets. This will reduce the impact of forecasted electricity prices to an estimated 23 per cent rather than the 36 per cent forecast in December. This is saving money for millions of Australians. And here's the thing: the member for Fairfax voted against it. The member for Flinders voted against it. They come in here for this MPI, talking about the effects of power prices on Australia, and every single one voted against the most substantive thing that has been proposed and actioned to do something about it. Every single one voted no.

The second thing the government has done to support Australians with higher power prices is direct rebates. We have put in place rebates that help 5½ million households and a million businesses across Australia.

The third thing we've done is energy efficiency measures. The budget contained a $1.6 billion energy savings plan, and this is important. By supporting increased energy efficiency in Australia, we kill two birds with one stone: firstly, we get energy prices down; secondly, we help with our emissions. And Australia has a long way to go on this dimension. We rank 58th out of 63 countries on energy use per capita. Our homes are largely inefficient. We know that upgrading an average house from a one-star rating to a three-star rating can reduce energy bills by 30 per cent and significantly reduce emissions. That's why our plan had a significant $1.3 billion investment to establish the Household Energy Upgrades Fund and $300 million to support upgrades to social housing, helping around 60,000 properties save up to one-third on their energy consumption annually. This is a measure which reduces emissions, cuts power bills and helps those in need.

So what has been the impact of these policies? We've seen the default market offer in New South Wales, which I represent. There has been forecast a 21 per cent increase as opposed to the 40 per cent increase that would have occurred in the absence of the government's intervention. The 1.6 million people who also benefit from the rebates negotiated by the Treasurer won't see an increase at all. They will see an eight per cent decrease in their energy bills—a decrease. Nowhere in the rhetoric from the other side have those opposite talked about the impact of the government's actions on power bills. Throughout this entire MPI, none of them have acknowledged the significant savings that people across Australia will benefit from as a result of the government's swift action in this space. South Australians would have experienced a 51 per cent increase. Instead, they will get a 24 per cent increase as a result of the government's action. Again, those who are receiving rebates in addition to that will have a three per cent cut.

Clare Savage, the energy regulator, said recently that if it had not been for federal intervention last December there would have been a rise of 35 to 50 per cent. This is the consequence of the government's action. This government understood this problem, responded to the concerns of Australians and took action—action which was rejected and opposed by the other side of the House, action which they voted against, action which is saving Australians money on their power bills.

Finally, what is their alternative? Their alternative is no action to cut the price of coal and gas and no increase in supply. Their alternative is nuclear energy, which everybody, from the CSIRO to AEMO, acknowledges would be the most expensive form of power. It's not a response. It's about the politics of delay.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The discussion has now concluded.