Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Hansard source

Before commencing some remarks on the Australian Energy Market Amendment (AEMO and Other Measures) Bill 2009, can I congratulate Senator Arbib on his appointment. I note that he is in the ministerial chair, taking through legislation on behalf of the government. It is a great honour to serve on the frontbench, especially in government. I simply congratulate him and wish him well in the new role—but, of course, not too much so. But, whilst he is there, may he enjoy it and be of great service to the Australian people.

The coalition supports the Australian Energy Market Amendment (AEMO and Other Measures) Bill 2009 and believes the changes being implemented by it are non-controversial. These minor changes to Commonwealth legislation, to both the Renewable Energy (Electricity) Act 2000 and the Trade Practices Act 1974, will allow for the establishment of a single national market operator for electricity and gas—the Australian Energy Market Operator. The bill also amends legislation to reflect a name change in Western Australian gas legislation. Whilst these may be minor changes to the legislation, they are an important reform for the energy sector. AEMO will assume the responsibilities and functions of existing gas and electricity market operators, including the National Electricity Market Management Co., NEMMCO. Mr Acting Deputy President, don’t you just love all these acronyms!

The Australian Energy Market Operator, or AEMO, is anticipated to commence operation on 1 July 2009, and the coalition’s support for this legislation, we trust, will facilitate this commencement. These reforms will ensure more efficient investment in energy infrastructure. They will continue the process of promoting competitive energy markets and enable the commencement of a single national energy market operator for both the electricity and gas sectors.

The development of this bill has been overseen by the Ministerial Council on Energy, which was created in 2001, and stems from the reforms to the energy sector made by the Howard government. AEMO will assume the responsibilities and functions of existing gas and electricity market operators, including NEMMCO.

Having indicated our support for the bill, I put on record the opposition’s concerns more generally as they have been stated by our coalition shadow minister, the Hon. Ian Macfarlane. AEMO is taking on the transmission planning functions of the energy market. If AEMO identifies a need that is not commercially viable for the private sector to invest in, how do we prevent the public sector—that is, the Rudd Labor government—taking ownership or investment in energy infrastructure?

First, it is not appropriate for the Commonwealth, or any government for that matter, to own energy infrastructure; and, second, will the Rudd government rule out using the Building Australia Fund for energy infrastructure? To the casual observer these concerns about the Rudd government taking public ownership of energy infrastructure may sound spurious, but the reality is that the Prime Minister and the Treasurer—now known as ‘Doom and Gloom’—have been throwing money around of late, with no regard for the quality of spend or the future risks. We do not want this to be repeated in the area of energy infrastructure and will be relying on the Minister for Resources and Energy to hold the Rudd cabinet to account on this—as the minister knows what is right and what is wrong, as we saw with him blowing the cover off Fuelwatch. In short, despite our broader concerns about the policies of the Rudd government, we do support this bill. On behalf of the coalition, I commend it to the Senate.