Senate debates

Thursday, 14 September 2017

Questions without Notice

Energy

2:45 pm

Photo of Slade BrockmanSlade Brockman (WA, Liberal Party) Share this | | Hansard source

My question is to Minister for Education and Training representing the Minister for the Environment and Energy, Senator Birmingham. Can the minister apprise the Senate of the importance of a reliable and affordable energy supply to Australian families and businesses?

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | | Hansard source

I thank Senator Brockman for his question because Senator Brockman, I know, appreciates the importance of reliability and affordability in our energy markets, as do all of my colleagues on this side of the chamber. Indeed, households and businesses around Australia also know that affordability and reliability are essential. Affordability and reliability are widely appreciated. They don't seem to be appreciated by those opposite, so I was surprised to find that some others who do recognise the importance of affordability and reliability come from none other than the union movement.

I was looking through various statements and submissions recently. In January this year, the Victorian secretary of the Australian Workers' Union said:

You cannot run heavy industry without reliable, plentiful and cheap electricity.

…   …   …

It's just a shame that renewables aren't quite there yet.

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | | Hansard source

And you get that from renewables.

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | | Hansard source

No, you will want to hear this, Senator Cameron:

… the rush away from coal and gas-fired electricity power stations to renewables is a little unseemly in its haste because we are potentially crucifying hundreds of thousands of manufacturing workers.

It is not just the AWU. At the risk of inflaming my colleague Senator Cash, the CFMEU has had something similar to say. In its submission to a Senate inquiry in November last year, it said:

The decline and closure of base-load coal power in South Australia has contributed to higher average power prices in that State together with much uncertainty over future pricing … and increased vulnerability of supply …

We understand the importance of affordability and reliability. Households understand the importance of affordability and reliability. Businesses understand the importance of affordability and reliability. Even trade unions, it seems, understand the importance of affordability and reliability. It's just those opposite who want to pretend you can live in some nirvana where you don't have to worry about putting policies in place to deliver affordability and reliability.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Brockman, a supplementary question.

2:47 pm

Photo of Slade BrockmanSlade Brockman (WA, Liberal Party) Share this | | Hansard source

Can the minister outline what the Turnbull government is doing to put downward pressure on power bills?

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | | Hansard source

As I've told the Senate, we're taking a number of steps across retail markets, network systems and, indeed, generation. In terms of network systems, this chamber could have, if it had wanted to, passed legislation this week to put in place the limited merits review process. This is legislation that would have saved billions of dollars, because that's certainly the extent to which it's been gamed by network operators to date. But, despite saying it should be done, and done quickly, those opposite have sent it off to a Senate inquiry. They've acted as a roadblock and deferred action in that space. Nonetheless, as a government, we're getting on with taking action elsewhere. We're ensuring that two million Australian households across the country are going to have a clear opportunity to choose to get onto a cheaper energy plan, saving up to $1,500 per household in the some cases. We're ensuring that there is more gas back in the domestic market, with Santos announcing just last week an extra 30 petajoules in the market, which will make a real difference to supply and therefore affordability. (Time expired)

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Brockman, a final supplementary question.

2:48 pm

Photo of Slade BrockmanSlade Brockman (WA, Liberal Party) Share this | | Hansard source

Is the minister aware of any spurious claims or, dare I say it, alternative facts in discussions around energy policy in Australia?

2:49 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | | Hansard source

It was remarkable to hear Mr Shorten and others seek to mount claims that power prices have gone up by $1,000 recently. These are claims that they have sought to peddle, despite the fact that both the Australian Energy Regulator and the Australian Energy Market Commission have clearly said that those figures are incorrect. The Labor Party is out there simply peddling falsehoods to try to play politics with the serious issue of energy supply and energy affordability. It doesn't matter which way you take Labor's claim, it's false.

The coalition clearly inherited a mess when we came to office. Electricity bills had increased by more than 100 per cent over previous years when we came to office. But our steps to repeal the carbon tax saw the largest fall in electricity bills. We saw, as the ACCC has confirmed, a $550 benefit to households than would otherwise have been the case, and we will keep— (Time expired)