Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the Leader of the Opposition for his question. I am aware of the report, and of course I am aware that many Australian families struggle to make ends meet and certainly feel the pressure when the electricity bill comes in. It is important that Australian families be clear about the causes of rising electricity prices. The truth is that we have seen over decades and decades underinvestment in the capital necessary for our electricity systems, and that means that we are now seeing catch-up investment with all of the costs that come with that catch-up investment. The fact that this exists as a pressure on electricity prices has been acknowledged by all sides of politics. I do note, for example, that the member for Groom acknowledged this when he said that power prices were set to double over the next five to seven years, irrespective of who was in government—lack of planning had led to an investment drought. He also said:

Australians in all states are feeling the impacts of rising power prices, in large part due to the neglect and mismanagement of State Governments.

I know on all sides of politics there has been an acknowledgement of power rises and that, for example, the Premier of Western Australia, Colin Barnett, apologised to the people of Western Australia for increasing electricity charges by as much as 50 per cent. He said:

That was a difficult decision. I knew it was the right decision … I apologise for it for the hurt. But we had to do it.

That was an acknowledgement of the pressures that exist as a result of underinvestment in electricity generation and electricity supply due to, I would say, some severe neglect by state governments.

In respect of carbon pricing, which comes into effect on 1 July, of course Australians around the nation will see assistance for an average family of more than $500 a year. There will be tax cuts, increases in family payments and increases in pensions. There will be that money on hand to assist people and, as we know in this parliament, the threat to Australians having and retaining that money is the Leader of the Opposition.

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