Kerry O'Brien (Tasmania, Australian Labor Party, Shadow Minister for Transport) Share this | Hansard source

Senator Scullion was not here for the third reading of the previous piece of legislation; I thought he supported it but I did not actually see him in the chamber and putting his hand up to support it. As Labor supported the last piece of legislation we will be supporting this bill. Mr Martin Ferguson, the member for Batman, is Labor’s resources spokesman and has carriage of this legislation in the House of Representatives.

The bill establishes the mandatory energy efficiency opportunities assessments announced in the government’s energy white paper entitled Securing Australia’s energy future, which I think was launched in June 2004. Labor supports the passage of this bill, but I will move a second reading amendment highlighting the government’s failure to address the urgent need for greater energy efficiency across all sectors of the economy, not just business. There is a pressing need for Australia to generate greater efficiency in our transport fuel use, and this means having a national focus on the long neglected policy area of public transport. Congestion in our cities means hundreds of thousands of Australians waste time—and fuel—just getting to work each day.

Electricity system meltdown due to the escalating use of household airconditioning is now a predictable element of an Australian summer. We cannot pretend any longer that non-business energy use does not matter, nor can we pretend that our energy supplies are infinite or that greenhouse implications can be ignored. We have to become smarter about our domestic and transport energy consumption. These important policy challenges are not addressed in this bill.

The bill also fails to take up the challenge of diversifying our energy supplies. This government is still not doing enough to clean up coal and fast-track the development and uptake of alternative fuels and renewable energy technologies. The government has also missed an opportunity to take up the bipartisan recommendations of the House of Representatives environment committee report on sustainable cities, many of which deal with energy efficiency initiatives that would make our cities more liveable.

Labor welcome the government’s initiatives to address energy efficiency opportunities in the business sector. However, we say they do not go far enough. The bill requires large energy-using businesses to register with the Department of Industry, Tourism and Resources; it requires these businesses to undertake an assessment of energy efficiency opportunities; and it requires them to report publicly on the outcomes of the assessments.

The bill is targeted at large energy users to address a perceived energy efficiency gap. In Australia, the level of energy efficiency—and the rate of improvement over the past three decades—is lower than in major industrialised countries. While the relatively lower price of energy in Australia may explain some of the difference, Australia has a lower rate of energy efficiency improvement than countries with similar energy prices, such as Canada and the United States.

Of course, some technically feasible energy efficiency improvements are not yet economically viable, but there is evidence that many businesses do not take up energy efficiency opportunities that are cost-effective. This is known as the energy efficiency gap. The decision to introduce a mandatory assessment measure is aimed at addressing this gap and responds to the fact that previous government programs have shown that a significant number of privately cost-effective energy efficiency improvements have been overlooked by the participating firms.

Based on data from the ABS, around 250 companies are likely to be covered by this measure in a range of sectors, including mining, petroleum and general services. While business use accounts for over 80 per cent of Australia’s primary energy consumption, a relatively small number of businesses are responsible for the majority of this energy use. ABS data suggests that the 250 largest business energy users account for around 60 per cent of all energy used by business. While satisfied with the bill’s initial proposed business coverage, Labor urges this government to consider extending the program, in the longer term, to cover a larger proportion of emitters.

With rapidly rising energy costs, increasing concern about the implications of climate change and the extraordinary expansion of economic activity in China and India, it has never been more important for us to conserve our energy resources. The best way we can do this is by getting the most out of our of existing resources, and that means using better technology and developing cleaner energy sources. Total energy consumption for Australia is about 3,000 petajoules per annum which costs about $A40 billion. Industrial energy consumption is about 40 per cent, representing an energy bill of about $A16 billion a year. While some Australian businesses have embraced efficient energy use and are reaping the benefits, much more can be achieved.

In relation to business energy use, experience in Australia and overseas suggests that energy bill savings in the order of 10 to 15 per cent can be achieved over five years. Savings of up to $2 billion annually could be achieved, with obvious benefits for business and our national economy. There are economic and environmental imperatives driving the push for more efficient energy use by business. Labor support that push, but we do lament the failure of the government to address greater efficiency in relation to other sectors of the economy.

I conclude by moving the second reading amendment standing in my name and commending it to the Senate:

At the end of the motion, add:

“but the Senate:

             (a)    calls on the Government to introduce energy efficiency to all sectors of the community, including transport and housing, as well as business;

             (b)    condemns the Government for failing to support the alternative fuel and renewable energy industries; and

             (c)    condemns the Government for not adopting the bipartisan recommendations put forward by the House of Representatives Standing Committee on Environment and Heritage in its report on Sustainable Cities”.