Ewen Jones (Herbert, Liberal Party) Share this | Hansard source

I rise to speak on the Australian Renewable Energy Agency Bill 2011 and the Australian Renewable Energy Agency (Consequential Amendments and Transitional Provisions) Bill 2011. The Australian Renewable Energy Agency Bill 2011 establishes the Australian Renewable Energy Agency, known by the acronym ARENA, although no-one really knows where the 'n' comes from. ARENA is designed to administer centrally $3.2 billion in existing federal government financial support for renewable energy currently managed by the Australian government and by other Australian government funded bodies, such as the Australian Centre for Renewable Energy, ACRE, and the Australian Solar Institute, ASI. ARENA is designed to take over the work of ACRE in establishing and maintaining links with state and territory governments and ASI in creating collaborative research partnerships internationally. ARENA I understand will be the peak body responsible for policy advice to the Minister for Resources and Energy as it expands its role with the takeover of ACRE.

This bill also decides and establishes the members of the ARENA board, from its chief executive officer and its chief financial officer. It will also set out how this new organisation will operate and be funded. The yearly funding to keep ARENA running forms part of this bill and will run until 2020. There is currently approximately $1.7 billion of uncommitted funding that will be made available for ARENA for, firstly, research, development, demonstration and commercialisation of renewable energy and related technologies; secondly, developing skills and training in the renewable energy industry; and, thirdly, sharing non-confidential knowledge and information from the projects it funds.

The Australian Renewable Energy Agency (Consequential Amendments and Transitional Provisions) Bill 2011 complements the main ARENA Bill by providing for the transitional and consequential activities that need to occur in order for ARENA to take over funding and administration of existing programs and projects transferring from the Department of Resources, Energy and Tourism and ASI to ARENA. Contrary to the popular spin coming from this Labor-Greens alliance, the coalition believes that renewable energy does play a role in Australia's future energy needs. In fact it was the coalition that first threw support behind the CopperString project for North Queensland. While on the subject of CopperString, I must state my disappointment with Labor government, both state and federal, negotiations with stakeholders such as Mount Isa City Council and Xstrata and their decision to favour a gas fired power station in Mount Isa. For these two inept governments to say that it was a commercial decision by them is a complete furphy and a failure on a grand scale. CopperString was always the most expensive option. It was never the job of Xstrata, Mount Isa City Council or the people of Mount Isa to simply submit themselves to exorbitant electricity prices forever.

I will explain a little about CopperString. CopperString uses the impetus of bringing Mount Isa onto the national electricity grid and therefore opening up opportunities not only for the north-west minerals province but for renewable energy projects. The corridor between Townsville and Mount Isa has been identified as one of the most significant renewable energy precincts in the world. Projects such as the Kaiwedera solar project and the Kennedy Wind Farm, with over 700 turbines, would be able to feed directly into the grid.

We live on the Great Green Way, the road from Mackay to Cairns, Port Douglas and Mossman. Years ago they were looking for a tourism name to go on the Flinders Highway, which travels west from Townsville to Mount Isa. A wag in Richmond came up with the name 'MAMBA country'—it was an acronym that stood for 'miles and miles of bugger all'. We all thought that was hilarious, but how wrong he was. The north-west minerals province is just so important. With solar, wind and geothermal energy, North Queensland could have the most significant renewable energy project and corridor that this country has seen since the Snowy River scheme. Add to that the north-west minerals province and we have the economic powerhouse that North Queensland will become, as well as the food bowl for the rest of Australia going into the future. That this is being put at risk by this government being unable to maintain its negotiations with Xstrata and Mount Isa City Council is a shame. What we have seen is both governments walk away from this project, which has led to uncertainty and disillusionment for all who were looking toward a future where North Queensland could lead this country in renewable energy programs and the employment that would go with that. But it has been left to the proponents of the project alone to try to resurrect the possibility of support for renewable energy from Labor's state and federal governments. That is wrong.

This government has proclaimed its support for renewable energy and spent billions and billions of dollars on the industry—mostly wasted—and yet it would not step in and fight for CopperString. But this is no surprise from a government that has been too enthusiastically signing big cheques rather than pursuing renewable energy policies that deliver tangible, value-for-money outcomes for the industry.

With this bill comes the potential to make a positive change in streamlining the administration of renewable energy programs, but it is difficult to be optimistic given this government's history. ARENA will have $1.7 billion of uncommitted taxpayer money. This may not seem like much in comparison to the $10 billion fund created just to appease the Greens or the continuous wasted spending of a government that has become far too comfortable talking in billions. We need this new agency to be more financially responsible than this government has been. This is taxpayers' money and they are sick and tired of seeing a government that has adopted the philosophy that if you throw enough money at a policy you might get something positive from it. For ARENA to be a successful authority, it must support economically responsible policy and end the profligate spending that has been a hallmark of this poorly performing Labor government.

The ability for ARENA to deliver on this will depend largely on who is chosen to be on its board. I urge the government in making these selections to have somebody, at least one person, from regional Australia. We also need people who will faithfully approach the administration of such a large quantity of public funding with an apolitical and pragmatic outlook. Additionally, the board needs people with actual understanding of the renewable energy industry from commercial and scientific bases. Having it based in a regional area such as Townsville would also send a positive message that this board is not just an extension of the Canberra crowd and that it would have actual skin in the game.

Too often we see these positions given to bureaucrats who do not understand the industry with which they are now dealing and who do not understand the policy needs of anyone outside the capital cities. Regional areas like North Queensland are rich in potential sources of renewable energy and they are central to the future of this industry. I make the point that it was the coalition that came out with in-principle support for CopperString during the 2010 campaign, long before this government did. It is essential that the ARENA board recognises the strength of North Queensland and has the understanding of these areas that can only come from experience working in them. Only then will ARENA be able to administrate effective policy that will increase the supply of renewable energy and improve the competitiveness of Australia's renewable energy technology, as this bill intends.

This bill signifies a step in the right direction. That ARENA will absorb ACRE and ASI and actually reduce the number of bureaucrats is a first for this government. This government has a past so littered with failure and complication, it is every Australian's right to be sceptical that this will deliver a positive outcome—that it will actually deliver a reduction in bureaucrats. For the renewable energy sector, it has to bring support to projects and science based outcomes. It must be seen to be active and interested. It must have quality agendas for every meeting and not just concentrate on when the next meeting will be held and which resort site it will be visiting.

Both sides of this chamber recognise the economic and environmental opportunity that the renewable energy industry creates for Australia. The North Queensland region, from Townsville out to Mount Isa, is at the heart of this opportunity. We have the answers to the challenge of increasing our renewable energy supply that this bill presents; all that is missing is a government that wants to work with the region to help us get there. Instead we have a government that does not understand North Queensland and that has not been capable of administering policy to help the renewable energy industry. I hope that this bill is a sign that it is turning over a new leaf, but, with a record such at it has, it has a long, long way to go yet.

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