Andrew Willcox (Dawson, Liberal National Party) Share this | Hansard source

Where is the $275 reduction in household electricity accounts promised by Labor on 97 occasions leading up to the federal election? Since Labor being elected, this has not been mentioned once. Now, with a looming energy crisis, electricity costs are set to rise more than 56 per cent. Labor's appalling solution has rightfully received an outcry from our community. This is why some have labelled their set of measures and rhetoric a 'declaration of war' on the coal and gas industry. The industry groups they are combating are the same bodies that have helped Australia narrowly miss out on blackouts. Their cooperation and their input is vital.

The Prime Minister and his government have repeatedly ignored warnings from energy operators, doubling down on this rushed policy that we are debating today. Their approach is anything that doesn't mess with their renewables pipedream. Mark Samter of MST Marquee, who has been analysing global energy markets for over 20 years, described it as the 'single worst piece of energy policy'.

Let's go to the root cause of the issue. This is a supply-and-demand issue. If there is an oversupply, the price goes down. If there is an undersupply, the price goes up. We have an undersupply. We need more energy put into the grid, not market intervention that destabilises the entire industry and casts further doubt over Aussies' household bills and the certainty of even keeping their lights on. We don't want to end up in a situation where we are rationing gas because of the shortages that will occur when there is not enough gas being produced.

In Australia, we live in a market based economy. No matter its ideology, the government simply must respect the market influences that drive profit and generate national wealth. This market based economy also produces the products that we need. In this case, it's gas. The Labor government are more concerned with demonising the coal and gas industry and the companies that generate great wealth for our nation. I am urging the government to set its focus on energy solutions that actually work. Credit Suisse energy analyst Saul Kavonic puts it perfectly:

Now that Labor has violated industry trust, they are going to see how hard it is to keep the lights on without industry cooperation.

He goes on:

Any collapse of the heads of agreement is a sign that industry cooperation cannot be assumed any longer, raising the prospect of a 'Bowen blackout' before the next election.

With Labor, there is no certainty for business or for future investment. If we do not have energy at the right price in Australia, we're going to drive industry offshore. We don't want to do that. It's not right for the Australian people. The risk to Australia is enormous. If manufacturing industries decide to move offshore because it is easier to do business or if companies decide not to invest in Australia then we will have a situation where we lose jobs, and people will lose their incomes. That is not something that can easily be undone if it can be undone at all. But the economic uncertainty continues. Already energy shares are declining. People are not willing to put their money behind the government's decision. Our major producers are forced into a position where they have to reassure their investors that it is still a good idea to invest. Since the Prime Minister announced he would introduce price caps, nearly all gas investment has dried up. Investors have withdrawn their funding on new developments. Without these new developments, the country will be left without long-term supply.

The Labor government are messing around with free enterprise by imposing price controls. We should heed the lessons of history. Price controls have been enforced numerous times and have only proved to be detrimental to the economy. Australians deserve a long-term plan, not a panic reaction that is laced with nice sounding words but, beneath the surface, lie very dark consequences. Labor is about to get a major lesson in how free markets work and, unfortunately, Australians will be the collateral damage, paying the price for their ignorance. (Time expired)

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