Senate debates

Thursday, 25 November 2021

Bills

Offshore Electricity Infrastructure Bill 2021, Offshore Electricity Infrastructure (Regulatory Levies) Bill 2021, Offshore Electricity Infrastructure (Consequential Amendments) Bill 2021; Second Reading

12:30 pm

Photo of Jenny McAllisterJenny McAllister (NSW, Australian Labor Party, Shadow Cabinet Secretary) Share this | Hansard source

If there is one thing that the government excel at, it is that they never miss an opportunity to miss an opportunity. Whether it's rolling out vaccines in a pandemic or addressing climate change, the government always seem to be a day late and a buck short.

They're no different when it comes to offshore wind. But let's put aside that they're late to the party, and let's embrace the fact that they showed up at all. This legislation will finally allow offshore wind to begin in earnest in Australia. These bills establish a regulatory framework for electricity infrastructure in the Commonwealth offshore area. The bills would allow the construction, installation, commissioning, operation, maintenance and decommissioning of offshore wind and other electricity infrastructure. Just like solar, where Australia could become the Saudi Arabia of solar power, we could become the wind superpower as well. We have one of the longest coastlines in the world, and we are, after all, an island nation. There is so much potential, and the energy providers are already there.

Once again, as with most things energy and climate related, the government is playing catch-up. There are more than 10 projects waiting for the government to bring on this legislation so they can get on with the job, and those projects have massive capability. Star of the South, off the south of Gippsland, when complete, will produce enough energy to cover 20 per cent of Victoria's current energy needs. One single turn of an offshore wind turbine can provide as much energy as a whole day's worth of rooftop solar, and these turbines can turn 15 times each minute.

Some of the best wind resources are located just off the coast of the regions that have powered Australia and Australian industry for generations: Gippsland and Latrobe, Newcastle and the Hunter Valley, Illawarra, Gladstone and Central Queensland. These regions have the strong electricity grid infrastructure, the ports, the railways and, most importantly, the populations for new energy and new industry. These communities and their workers have the most to gain from a thriving offshore wind industry. So it's not just the energy created that benefits Australia but the jobs as well. The turbines need maintenance, and there's a network of ships and ports required for that maintenance. Green Energy Partners have two projects that they're looking to start exploratory work on, off the Illawarra and off Newcastle. They want to use Port Kembla as a construction hub.

The government likes to talk up technology and not taxes, but here we see them late to the game again when it comes to offshore wind technology. Probably a decade ago, I had the very good fortune to go to the United States and do some work on energy transition. At that time there was a coalition of energy providers up and down the East Coast of the United States working to establish the regulatory arrangements for offshore wind. A decade later, we're finally getting around to it. Why are we so far behind when there is so much to be gained?

There are some issues with the bill that we don't feel are adequately addressed. The Senate committee examining this bill, including the government senators who lead the committee, made some suggestions that it considered were important to the legislation. These include amending the objects clause to better incorporate electricity transmission and exports. Australia can be the battery of South-East Asia, especially after we harness the opportunity of offshore wind. We need to have in mind not just the domestic uses of this power but the opportunity to export to other nations. The committee also recommended amending the consultation requirements for declared areas, and we agree with the committee that the consultation requirements should include the Minister for the Environment, affected state and territory governments, energy planning authorities and developers. There should be greater transparency and time frames incorporated into the declaration process, and the committee supported further consideration being given to these matters.

The Senate inquiry had two additional concerns that weren't reflected in the final report. In particular, Labor has concerns over the bill's work health and safety framework. The committee heard substantial evidence that the government has not adopted the harmonised and national workplace health and safety law in the bills. Instead, the committee heard that the government has amended those laws into an essentially unrecognisable state.

If we don't have harmonisation of these workplace health and safety frameworks, we may end up with a situation where a worker would be subject to one regulatory regime onshore, a second while in transit on a vessel and a third while operating on an offshore renewable project. That is confusing for everyone involved and it presents risks for workers and employees.

To be fair, there is disagreement on these points, including between the department, the regulator and stakeholders representing both employers and workers in the industry. But, given the significant difference of opinion, Labor urges the government to urgently undertake further consultation on both the content of the workplace health and safety provisions and their coverage. If the government chooses not to do that and there is a change of government at the election—which I certainly hope there will be—Labor will undertake that work. Our national platform is clear: Labor will improve and harmonise the workplace regulatory frameworks covering workers in offshore clean energy. Australia has some years to get this right during the feasibility period and before construction begins. It's crucial that we do.

Labor's second concern is that the bill does not require local benefits to be included in merit criteria for licences. When the minister of the day is considering whether to grant an offshore or electricity licence, he or she should be required to consider benefits to local workers, businesses, communities and First Nations peoples. The committee heard it was important for this requirement to be reflected broadly in legislation in order to allow and ensure that they are reflected in detail in the regulations. Labor would also welcome the government considering a legislative amendment to ensure benefits for the local communities in which these new industries will be situated.

In summary, we welcome the bills. We called for them. The government promised them, then delayed them. While we don't seek to hold up the passage of these bills, they would benefit from further amendments. Business needs certainty and swiftness. Workers need proper workplace safety frameworks, and opportunities for local communities and workers need to be considered and included.

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