Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Hansard source

I move:

That the Senate take note of the answers given by the Attorney-General (Senator Brandis) to questions asked by Senator Moore and myself today.

Today in question time, Senator Brandis was asked a question concerning the outgoing BlueScope CEO, Mr Paul O'Malley, who last week told his company's AGM that BlueScope's electricity costs would rise by 93 per cent between 2016 and 2018. And I further asked the minister could he confirm that, after four years of Liberal National government, power prices have never been higher. The minister indicated in response he could not confirm either proposition. Can I perhaps draw the minister's attention to page 13 of the ACCC report, which the government has provided to every newspaper in the country today, which clearly indicates that the electricity prices in this country are at their highest level ever this year.

I might also indicate that the outgoing CEO of BlueScope, Mr Paul O'Malley, in fact, did tell his AGM last week that the price for BlueScope's electricity costs are expected to rise by 93 per cent. And I also draw to the chamber's attention that the government's favourite newspaper, The Australian, has been provided with modelling which suggests that when gas prices are used the wholesale price of electricity spikes from $70 a megawatt upwards to $120 a megawatt, a cost that is ultimately passed on to consumers. So what we're seeing in this country is that Australia's largest energy users have been warning us that an estimated $9 billion in additional electricity and gas costs will feed through to the broader economy, threatening jobs and investments as business drives the pressures on Canberra to ease what has been a predicted power shortage.

Now, the major companies, including brickmakers, supermarkets, soft drink bottlers and poultry producers, have all indicated that they are feeling the great pressures of the rise in energy prices right now, and that over the next two years these pressures will only grow because of the government's failure to recognise its role in terms of developing a coherent energy policy. Now, the surge in energy prices has forced businesses to defer investment decisions, with some of them actually thinking that they might have to move abroad. So we see the Australian Chamber of Commerce and Industry—people who are not normally associated with supporting Labor—and Mr James Pearson making this point repeatedly. We see:

We risk a double effect with energy prices hitting investment decisions, affecting demand for labour while also putting pressure on margins impacting the affordability of wage rises.

Mr Pearson said that recently.

What we've got is the Prime Minister saying that he's prepared to meet with the gas companies. He has, of course, met with them on several occasions now—he's had a good cup of tea with them. Instead of relying upon taking action, he has relied upon their good intentions to actually produce more gas for the Australian economy. And rather than taking action, we find the situation now in the spot price market that gas remains cheaper in Tokyo than it does in Australia—despite the claims made by the gas producers.

What we do know is that the market domination by the energy generators is such now that we have 40 per cent price hikes—of course, doubling the increases that were announced in June. We see the situation in New South Wales—the Liberal state of New South Wales—with the Small Business Commissioner yesterday warning that power prices were rising far more than the expected 20 per cent surge. So what we've got is a government that has commissioned the Chief Scientist to come forward with a report to put a political fix in place. And this government has been offered the support across this parliament to put in place a national policy that will actually provide the investment certainty to secure downward price pressures. But it is a government that can't negotiate with itself, let alone negotiate across this parliament. What we've got is a government that is paralysed: paralysed by indecision and paralysed by fear—fear that this Prime Minister will be deposed by the knuckle draggers on the far right of the Liberal Party. They are now dominating the policy positions of this government rather than the national interest. Rather than a preoccupation with getting the national interest set into a policy framework, this is a government preoccupied with its own survival. (Time expired)