Kylea Tink (North Sydney, Independent) Share this | Hansard source

I move the amendments circulated in my name together:

(1) Schedule 1, item 2, page 12 (line 24), omit "12 months", substitute "18 months".

(2) Schedule 1, item 2, page 12 (line 25), omit "12 months", substitute "18 months".

(3) Schedule 1, item 2, page 12 (line 28), omit "12 months", substitute "18 months".

These are quite extraordinary times that we find ourselves in, and it's unfortunate that this is being pursued so close to the end of the year. Let's make no mistake: we're here today due to a sustained and consistent failure of past federal governments to look beyond the immediate political term and identify and navigate significant reform to bring our country to a better place overall. The blame cannot merely be shifted offshore to a Russian war.

With that said, the legislation we have before us today, the Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022, is the instrument that is being offered and, given its potential impact and operation, it's important that it's properly scrutinised. Concerningly, from looking at media reports, it appears that many Australians may be falsely led to believe the reason this legislation is so urgent is that it is seeking to deliver cost relief for Australians prior to Christmas. The truth of this legislation is that this is not the case. The legislation we are discussing today will affect the market price available for gas and coal from mid-Q1 next year, with any impact not felt until Q2 2023. This legislation enables the flow of dollar-matched funds from the federal government via state governments to the energy providers themselves, with the end effect being the creation of an ecosystem where, rather than seeing a reduction in their bills, consumers will feel no increase or no additional pain. Fundamentally, it's akin to paying off one group to try and soften the effects on another.

Sadly, the issues we are facing are not ones that were unexpected. Speaking on behalf of the people of North Sydney, I say we're disappointed that we find ourselves at this time of year trying to rapidly and critically review a significant piece of legislation, with very little time to fully consult with those who need to be recognised as being most impacted. When it comes to the views of the people of North Sydney, though, I can confirm that residents are worried about the rising cost of energy bills, they overwhelmingly support a windfall profits tax on fossil fuels, they do not support any compensation flowing from the government to gas or coal companies as part of this package, and they have huge enthusiasm for using this opportunity to fast-track the renewable rollout.

This legislation will create a situation where the federal government is working with the eastern states in a dollar-matching scenario to effectively subsidise the cost of energy in a number of areas. Exactly how this will be done is still largely unknown, as the processes around distribution will be left to the state governments. I am moving these amendments today to extend the gas market energy price order from 12 months to 18 months to enable small to medium-sized energy providers to have the certainty they need to secure favourable contract terms.

Ultimately, the most important way we can reduce emissions across our country is to have residents and businesses buy their electricity from retailers of renewable electricity. The reality is that these are the providers driving rapid transition to true green energy for households. At present, smaller electricity retailers who try to do the right thing by contracting their supply from renewable generators are being impacted by the wholesale price rises, and a number have stopped taking new customers. While the proposed legislation goes some way to addressing this, by lowering wholesale prices for renewably backed small to medium-sized electricity retailers, the 12-month cap on gas prices creates too much uncertainty for them to reliably negotiate commercially competitive binding contracts. Setting the cap to 18 months would provide sufficient time for small retailers to have long enough price certainty to lock their hedge contracts and deliver lower costs for consumers. This will help keep small retailers in the game for market diversity and consumer choice.

Ultimately, the number of unknown factors relating to this legislation is still significant, and when looking at it objectively we must recognise this is yet another example of short-term problem solving rather than significant, long-term positive reform. In the longer term, for us to keep global warming below 1.5 degrees, we must do everything we can to transition as quickly as possible away from fossil fuels. This is an opportunity for the government to look more holistically at the role fossil fuels play in our society and for us to move away from them.

As a final cautionary note, I would also like to sound the potential for this intervention to be used as a cover for faster approval for new coal and gas projects, as has been the case in New South Wales. In the case of the amendment I'm moving today, my support for this bill is given on the condition that it does indeed enable us to transition more quickly to a renewable and sustainable future, and it should not be mistaken for support for propping up industries of the past like coal and gas. We must remain squarely focused on an orderly and ambitious transition to a clean energy future.

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