Laura Smyth (La Trobe, Australian Labor Party) Share this | Hansard source

I am very pleased to speak on this motion this evening. It is a matter of some considerable interest to me as a Victorian and as someone who is very interested in the development of clean energy industries. I know certainly that for this government the promotion of clean energy industries is something that we regard as critical in order to develop a sustainable, healthy and safe energy future for our country. It is for this reason that I was very pleased to speak in favour of the Clean Energy Finance Corporation Bill last sitting week.

As part of the clean energy mix, wind farms have a very important role to play in achieving the government's target of 20 per cent renewable energy by 2020. Increased renewable energy, along with energy efficiency and putting a price on carbon are each fundamental to our clean energy future. The renewable energy target is of course designed to ensure that the equivalent of at least 20 per cent of Australia's electricity comes from renewable sources by 2020. It is an important means to change our energy generation mix and to reduce greenhouse gases and emissions.

Last Friday, 15 June, was Global Wind Day. It is an international event coordinated by the Global Wind Energy Council and is designed to raise awareness of the value of wind energy worldwide. On the same day here in Australia, it is important to note, the Clean Energy Council released the findings of a very significant new report undertaken by Sinclair Knight Merz, on its behalf, into the economic benefits of wind farms. The study found a great many things, and I commend it to members to read. It found, for example, that $4.25 billion has so far been invested in Australia in wind power projects and that there is a potential for a further $17.8 billion to be invested locally in wind power through a variety of proposed wind farms. Australian investment includes manufacturing of towers that support the wind turbine generators and blades; and the civil, electrical and other site works, amongst a range of other things. Importantly, the study found that the construction of a 50-megawatt wind farm would provide a gross value-add of around $50 million to a state and could contribute between 0.012 per cent and 0.21 per cent to gross state product, depending on the size of the state economy.

In terms of employment the study found that the same size wind farm could generate around 238 jobs nationally through direct employment in its construction and total employment of around 795 full-time equivalent jobs directly and indirectly during the course of construction. In addition to that, the report estimates that a wind farm of the same capacity could generate 16 full-time equivalent jobs directly and 44 jobs in total as a result of its ongoing operation—that is, a single wind farm.

The report estimates that the current direct employment in the industry could be as much as 2,300 full-time equivalents and total employment—that is, both direct and indirect employment—could reach around 6,900 full-time equivalents. It is an extraordinary number of people who are currently employed in the industry.

As I mentioned earlier, Australia has committed to having 20 per cent of its energy supply from renewable sources by 2020. It has also committed to a carbon reduction of between five per cent and 15 per cent—or 25 per cent below 2000 levels—by 2020. The five per cent target, as we all know, is unconditional. If we are to achieve this we need wind energy in our renewable energy mix.

The report I mentioned by Sinclair Knight Merz mentions the current status of wind farm investment, employment and carbon abatement. It found that the average abatement achieved by 100-megawatt wind farm developments across Australia is around 246,200 tonnes per annum. That is the equivalent of taking around 57,000 cars off our roads. No doubt, members will join with me in supporting wind farms and wind energy as a means to significantly reduce our carbon emissions and achieve the targets that we seemingly all have signed up for, even those sitting across the chamber from us.

The expansion of Australia's wind energy industry is of critical importance in promoting Australia's energy security while decreasing pollution. It is in that context that I am extremely disappointed with the planning arrangements that have been put in place arbitrarily, without consultation and without regard to the future generation of wind energy in Australia by the Victorian government. The damage that can be done to the future growth of wind farms in Australia through unreasonable planning restrictions has been demonstrated by the actions of the Victorian government. Since coming to office in 2011 this government has sent a clear message to the wind farm sector, and that is that it is not welcome. They have done this by introducing excessive planning restrictions on wind farm development through the Victorian government's new planning amendment VC82. The major change of this amendment is that wind farms cannot be built within two kilometres of an existing dwelling without the written consent of the owner. That means that a single objector has been given a veto on all wind farm developments within two kilometres of their dwelling. This is referred to as the two-kilometre setback. There are also five-kilometre dead zones—areas where wind farms are prohibited, even if everyone in that community supports a wind farm. It is quite extraordinary.

They have also listed an extensive maze of wind farm buffers and bans which specifically exclude whole sections of the state of Victoria. When you add these restrictions together you can see that the state government is trying to strangle the wind farm renewable sector in Victoria. These are extreme and have gone much too far. They have been rightly reported to be Australia's most restrictive planning laws for wind farms.

The devastating effect of this policy has been estimated by industry consultants Carbon Market Economics, who have concluded that this policy could mean that between 50 per cent to 70 per cent of proposed wind farms would not be developed in the state of Victoria. And much of that investment is in regional Victoria, so it is extraordinary to me that members of the National Party, of all parties in this place, should be supporting these sorts of measures. Global wind farm developer, Windlab, has closed down its Melbourne office, moving its operations to Canberra, blaming the restrictive new Victorian planning laws. Windlab's general manager, Mr Nathan Steggel, said that the Victorian government's planning laws had gone too far and made it 'difficult to develop projects in Victoria'. Pacific Hydro's general manager, Mr Lane Crockett, is on the record as stating, 'Unfortunately, these new wind farm laws will hold Victoria back while other states power ahead.' The ridiculous nature of these restrictions is further emphasised by the comments of the head of the world's largest wind energy company, Vestas, Mr Ditlev Engel, who is reported as saying that he has no idea where the government's new restrictions come from or what they are based on.

The impact on clean energy generation from this action will be to freeze output. The Victorian government's own Department of Primary Industries forecasts that, over the term of the current Victorian government, there will not be any additional wind-generated power put into the grid. So not only is this likely to threaten jobs and future investment but also it obviously puts under pressure the renewable energy targets that Australia has set and the emissions abatement targets that it continues to set.

The Victorian government has also imposed additional administrative and specialist costs on local government as part of its new approval regime for wind farms in Victoria. These are new costs for noise and engineering experts, lawyers and accountants, and no doubt they will flow on to ratepayers through their rates. I know that many regional councils have already voiced their opposition to this considerable cost-shifting and the imposition of red tape on industry and job development. We hear regularly from those opposite about the damaging effects of introducing red tape in industry development, yet extraordinarily we have people here this evening who no doubt will be supporting the Baillieu government's attempts to restrict the wind farm industry. It is really a drastic restriction on industry, and it needs to be said that it was done with minimal public scrutiny. It was done originally without legislation—just a decision by the Liberal Minister for Planning, Matthew Guy, supported by his government.

I have mentioned this evening the very significant effects on industry development and jobs creation of the wind farm industry. It is extraordinary to me that, in a state which is struggling at the moment, we are not making better use of our opportunities to generate new industry, to generate clean energy industry and to support the regions, as those opposite would have us believe they do. It is extraordinary to me that we are putting in jeopardy jobs and revenue streams for farmers. There is much more that I could say on this, but for this evening I am afraid that that will suffice. I support the motion and I encourage other members to do likewise.

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