Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

This bill, repealing the Clean Energy Finance Corporation Act 2012, delivers on our election commitment to abolish the Clean Energy Finance Corporation (CEFC).

The CEFC was established on 3 August 2012 and was given a wide remit to lend taxpayers money.

The CEFC extended the reach of the carbon tax by creating a $10 billion fund to invest in renewable energy technologies and energy efficiency projects.

The CEFC used a full range of financial instruments to co-finance and invest directly and indirectly in these projects and technologies.

From the outset, the concept of the CEFC overlapped with the 20 per cent renewable energy target.

By itself, this target encourages investment in renewable energy. The target does not need to be accompanied by $10 billion of CEFC spending to encourage investment.

Setting up a government bank with $ 10 billion of borrowed money, underwritten by taxpayers, to invest in high-risk ventures should be a thing of the past in this country.

This bill also transfers the CEFC's existing assets and liabilities to the Treasury.

The Commonwealth will ensure both an orderly transition of the CEFC's investments to the Commonwealth and minimal disruption to the clean energy market so business can continue as usual.

We will of course honour all payments that are necessary as part of meeting our contractual obligations to committed investments.

These obligations will be met from the CEFC's existing funding, which will be transferred to a new CEFC Transitional Special Account.

This account will also cover the Treasury's management costs in administering the CEFC's investments. Any other liabilities relating to the CEFC will also be covered by funds from the special account.

Future monies that were due to be appropriated to the CEFC annually until 2017 will no longer need to be borrowed and will have a positive impact on the gross debt on issue.

The bill also provides for excess funding to be returned to consolidated revenue at any stage if it is no longer needed for managing the CEFC's assets and liabilities.

With this bill the government is delivering on its commitment to abolish the CEFC.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.

Ordered that the resumption of the debate be made an order of the day for a later hour.