Senate debates

Tuesday, 16 March 2010

Renewable Energy Target Legislation

3:35 pm

Photo of Guy BarnettGuy Barnett (Tasmania, Liberal Party, Chairman of the Scrutiny of Government Waste Committee) Share this | | Hansard source

I seek leave to amend general business notice of motion No. 740 by deleting in paragraph (b)(iii) the words after the word ‘result’ and replacing them with ‘in additional costs to end users significantly greater than the $3 to $4 per annum increases anticipated by the government’.

Leave granted.

I, and also on behalf of Senator Fisher, move the motion as amended:

That the Senate—

(a)
notes that:
(i)
major flaws in the design of the Federal Government’s renewable energy target legislation have led to a dramatic drop in the price of renewable energy certificates and stalled investment in the renewable energy sector,
(ii)
the Federal Government has now acknowledged these concerns and foreshadows legislation to remedy these flaws and advised that the bill will be introduced mid-2010 with a start date of 1 January 2011,
(iii)
delays have already caused a loss of jobs, including at the Musselroe Bay Wind Farm development in north-east Tasmania and have threatened the proposed expansion of the Hallett Wind Farm in South Australia, and
(iv)
any further delay will cause a further loss of jobs; and
(b)
calls on the Government to:
(i)
work cooperatively with industry, the community and the opposition parties to ensure the bill is properly designed and introduced without delay,
(ii)
without delay, release any modelling or other analysis on which this proposal is based, and
(iii)
provide assurances that the legislation will not result in additional costs to end users significantly greater than the $3 to $4 per annum increases anticipated by the Government.

3:37 pm

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | | Hansard source

Mr Deputy President, I seek leave to make a short statement.

Photo of Alan FergusonAlan Ferguson (SA, Deputy-President) Share this | | Hansard source

Leave is granted for two minutes.

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | | Hansard source

I thank the Senate. The Rudd government’s Renewable Energy Target Scheme will be enhanced to provide greater certainty for households, employees and businesses within the renewable energy industry as we build the low-pollution economy of the future. From 1 January 2011 the renewable energy target, which guarantees that 20 per cent of Australia’s energy in 2020 will come from renewable resources, will include two parts: the small-scale renewable energy scheme and the large-scale renewable energy target. These changes are expected to deliver more renewable energy than the original 20 per cent target and will ensure we build the clean energy future Australia needs. Importantly, the government’s revamped RET will support new jobs and investment in both large- and small-scale renewable energy projects. While these changes address some uncertainty in the current market, uncertainty around the Carbon Pollution Reduction Scheme is also harming market sentiment. This illustrates why it is critical to have a market based, long-term response to reducing emissions to drive investment in the renewable industry. Renewables of course went back under the Howard government ABARE 2006 renewables contribution. They contributed 10.5 per cent of our electricity supply in 1997 compared to 9.5 per cent in 2007. In 2003 the Howard government’s own review of the then MRET recommended increasing the target, advice rejected by the Howard government time and time again.

Photo of Alan FergusonAlan Ferguson (SA, Deputy-President) Share this | | Hansard source

The question is that the amended motion be agreed to.

3:38 pm

Photo of Kerry O'BrienKerry O'Brien (Tasmania, Australian Labor Party) Share this | | Hansard source

Mr Deputy President, I understand that the Greens support the motion. On that basis, the government recognises that, with the support of the Greens, Senator Barnett’s and Senator Fisher’s motion has a majority in the Senate. We will not call a division.

Question agreed to.