Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Hansard source

The government is committed to introducing a price on carbon, and the 2011-12 budget makes some changes to existing climate change programs to better align with that objective. Introducing a price on carbon is a key reform for the government. The budget makes a number of changes for the Climate Change and Energy Efficiency portfolio to better align with the government's objectives. One of the changes within the budget is in relation to the National Solar Schools Program, which has assisted more than 2,600 schools. The program will close earlier than had initially been planned for. It will close in June 2013, generating a number of savings, including creating funding opportunities for energy efficiency, greenhouse and energy reporting, and Solar Cities programs.

Overall, departmental operating funding, of the appropriation funding, will total $435.1 million in 2011-12. That comprises operating funding of $142.3 million, down from $218 million in 2010-11; departmental capital funding of $11.3 million, which is down from $50.4 million in 2010-11; and administered funding of $289.5 million, down from $683.7 million in 2010-11. The major components of the administered funding are energy efficiency programs including the Home Insulation Program, the solar hot water initiative, Low Carbon Communities and a number of other, minor measures. The Office of the Renewable Energy Regulator will receive appropriation funding totalling $29.6 million in 2012-12. The department's operating funding decreases significantly from 2010-11 to 2011-12 and beyond, which reflects lapsing programs and one-off funding for what was then the Australian climate change regulatory authority that had been anticipated under the Carbon Pollution Reduction Scheme. The department's funding does not reflect any funding for establishing a carbon price regulator at this point in time.

Major new measures for the portfolio announced in the budget include the savings I have already indicated from the National Solar Schools Program closure as well as the renewable energy target and implementation of legislative amendments for the Office of the Renewable Energy Regulator, the energy efficiency functions that I have alluded to, greenhouse and energy reporting over four years, the Solar Cities program and savings for the Green Loans and Green Start programs, which were previously reported in additional estimates.

All of these changes ensure that the Department of Climate Change and Energy Efficiency has the resources that are necessary for the work that is ahead of it in its departmental functions: the formulation of an important reform in the form of a carbon price mechanism, the important work of the Office of the Renewable Energy Regulator and the necessary departmental capacity in systems to administer a number of important programs.

Amongst those important programs, the Home Insulation Program has received a good deal of attention over the last 12 months or so. This program, of course, has been the government's focus for dealing with the issues that arose in the implementation of the program. We implemented a foil insulation safety program with regard to foil insulation installed under the Home Insulation Program. That foil insulation safety program is now largely discharged. There is a more general program for non-foil insulation, and the government committed to inspecting a minimum of 150,000 households insulated with non-foil insulation. That inspection program is now also approaching a conclusion. The government sought a range of advice and analysis from organisations, including the CSIRO and a risk assessment organisation—Booz and Company—to advise on the announcement that the government made to draw the wind-up of the Home Insulation Program to a conclusion. We are confident that that will be concluded in the not-too-distant future. (Time expired)

See this speech in context