Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Minister Ayres. Minister, the Capacity Investment Scheme is a revenue-underwriting scheme which uses taxpayer funds to prop up solar, wind and storage projects aimed at forcing the government's 82 per cent renewable electricity target by 2030. The Herald Sun reported yesterday that, through the CIS, taxpayers are underwriting the construction of a $120 million large-scale battery in South Australia run by energy company Pacific Blue, who are wholly owned by the Chinese government's State Power Investment Corporation, or the SPIC. Minister, my question is: how is allowing a foreign, authoritarian government to hold influence over Australia's critical energy infrastructure in our national interest at all?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Well, we've set about the lowest cost approach to building a low-cost, reliable electricity system for Australians. That's the program of effort that we are engaged in. It is the lowest cost approach. It is in the interests of industry and blue-collar jobs in the regions in particular. Foreign investors in Australia's energy infrastructure are subject to the normal scrutiny through the foreign-investment framework.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Babet, first supplementary?

Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

Thanks, Minister. The SPIC, the State Power Investment Corporation, is also an active participant in Chinese president Xi Jinping's Belt and Road Initiative, which the US government has labelled an attempt to create economic dependencies and coerce others. Minister, are you happy for Australia to be dependent on and coerced by China?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Senator, the truth is that relying upon the lowest cost option, which is Australian solar and Australian wind in Australia, is absolutely in the interests of our energy security, and I refer you to my previous answer.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Babet, second supplementary?

Ralph Babet (Victoria, United Australia Party) Share this | Link to this | Hansard source

Minister, Chinese state owned enterprises are required to give China's intelligence services access to their operations. So it's not just about spying; it gives hostile intelligence services capacity to install malware, kill switches and other forms of technology designed to give China control over critical infrastructure during moments of tension. Minister, are you and your government comfortable with this risk?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

I'm very confident in our foreign investment framework at managing risks of any kind of foreign investment.