Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. I refer the minister to the government's decision this week to slash interest rates for large companies that borrow from the government's $5 billion Net Zero Fund. The Net Zero Fund is funded by the National Reconstruction Fund, which has an investment mandate to charge borrowers a rate two to three per cent above the five-year government bond rate. However, this week the government has announced that investments from the Net Zero Fund will only have to achieve an interest rate of one per cent below the five-year government bond rate. That is, in effect, a three to four percentage point cut in interest rates for investors in large-scale wind and solar projects. The Australian Financial Review reported on this decision:

… Labor is in effect willing to lose money on renewables projects.

In the very week that Australian families are having to pay more on their home loans thanks to Labor's reckless spending, why is the Labor government giving an interest rate cut to billion-dollar companies that invest in solar and wind projects?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think Senator Canavan's position on investment in renewables, in decarbonisation, in energy efficiency and in low-emissions technologies is well known. He and I disagree vehemently on these issues, but I will acknowledge that he has remained consistent over many years on this.

We believe, on this side of the chamber, that it is necessary for us to drive decarbonisation. We believe it is necessary to drive energy efficiency and we also believe it is necessary to try and scale up domestic manufacturing in renewable and low-emissions technology. That is jobs and economic activity in Australia—the capability and the capacity to manufacture low-emissions and renewable technologies here. There are a number of reasons for that, which are very much economic, not ideological. We know that the global market is transitioning. If you're serious about wanting to make sure our children grow up in an economy where we can deliver products and services to the world, where we can be part of supply chains that will be valued in a very different global economy, then we have to transform the Australian economy.

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

Senator Canavan?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

A point of order on relevance: I have given the minister 90 seconds, but she hasn't gone to why they are getting a cut but homeowners aren't.

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

I believe the minister is being relevant, and I'll continue to listen carefully to her response.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thought I was outlining the public policy rationale and the jobs rationale and the economic rationale for why we believe that leveraging more private sector activity in these areas is a good thing for our country and a good thing for Australian jobs, and that's what the government is doing.

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

Senator Canavan, first supplementary.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

This week the government's Clean Energy Finance Corporation has announced that it is funding lower interest rates on purchases of Hyundai and Kia fully electric vehicles. As the CEFC stated, 'eligible customers could save a minimum of 0.5 per cent up to 1.0 per cent on their finance rate across Hyundai and Kia.' Why is the government cutting interest rates for cars made in Korea while the government's reckless spending is driving up interest rates for Australian families who just want to buy a home made in Australia?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

First, it is true that we no longer manufacture cars in Australia—and thank you for reminding us of that, because we in South Australia will never forget Joe Hockey standing at the floor of that chamber and daring the car industry to leave, and being so proud. That was in your Productivity Commission phase. They were so proud to be the Liberal government that stopped working with car manufacturers to ensure that we no longer have car manufacturing in this country.

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

Senator Canavan?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

A point of order on relevance: the question is about a government-announced program this week, the day before the interest rate rise, but the minister is going to things that happened 10 years ago or more.

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

The minister is being relevant to your question, and I'll continue to listen carefully.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I wish we lived in a country that still made cars and had the capacity to produce electric vehicles in Australia so that we would be in a position where we could provide tax breaks for Australians to buy Australian cars. But that is not the case, and we all know whose responsibility that was.

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

Senator Canavan, second supplementary.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

The government's net zero low-interest deals for big companies and electric vehicles are pushing up government spending, creating inflationary pressures and leading to higher interest rates. How much is the government spending on its net zero agenda? And how much is that increasing interest rates for Australians who would just like to stay in their own homes?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Well, the problem with Senator Canavan's question is an example of an ideological position—

Hon. Senators:

Honourable senators interjecting—

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

Senator Wong, I'm sorry. The interjections across the chamber are disorderly. Minister Wong.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The difficulty with Senator Canavan's questions is that they are an example of ideology getting in the way of economic logic. Senator Ayres, I think it was yesterday or the day before, talked about the way in which the government is ensuring jobs and investment in one of the projects in his portfolio—

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

Senator Canavan and Senator Ayres! Perhaps you can go outside and have a chat.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

As I was saying, Senator Ayres described very eloquently, yesterday or the day before, the way in which investment by government is ensuring jobs in Gladstone. Senator, you know, because you are an economist, that your government invested in the CEFC. You also know that utilising government funds to leverage private sector investment is all about Australian jobs. (Time expired)

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

Senator Canavan and Senator Ayres, the running commentary needs to stop.