House debates

Wednesday, 29 May 2024

Bills

Net Zero Economy Authority Bill 2024, Net Zero Economy Authority (Transitional Provisions) Bill 2024; Second Reading

11:36 am

Photo of Carina GarlandCarina Garland (Chisholm, Australian Labor Party) Share this | Hansard source

As others have said in this chamber, we have some amazing opportunities ahead of us as we transition to a net zero economy, but we know that these opportunities will not seize themselves. As the race to net zero accelerates, we must ensure Australian workers and communities are supported to play their parts. We know that there are communities in which the experience of the transition will be most concentrated, and our government knows that we must do what we can to support these communities and all those that live in them. We know the government has a critical role to play. That role is to coordinate programs and policies to attract investors and help communities make the most of the transformation opportunities.

Australia is uniquely positioned to become a renewable energy superpower in the future net zero global economy. As a nation, we have an abundance of renewable energy sources and, as home to every metal and critical mineral essential to net zero technologies, it would be negligent not to take advantage of our natural assets in a competitive global economy. This is, of course, why our government is taking the opportunity and responsibility incredibly seriously.

I'm really proud to be part of a government that wants to seize the opportunity presented, and the Net Zero Economy Authority is a key part of the plan to do this. Its job is to ensure we are looking after Australia's workers and regions as we transform from a fossil fuel based economy to a renewable energy superpower. This recognises that the way we navigate economic change is as important as reaching the destination of a net zero economy. The authority will, on behalf of government, be a partner with industry and investors in getting big, transformational projects happening. Importantly, the authority will support workers through the change. As Australia's ageing fleet of power stations retires, the authority will take a collaborative and consultative approach in working with employers, unions and others to support workers into new opportunities. This is not just the right thing to do by workers; it also ensures we're making good use of the highly skilled workers we need more of in the net zero economy.

The authority will also play an important role in helping communities navigate this change, especially in those regions where change may be significant. This new authority, with its focus on managing economic change, complements over $40 billion in government initiatives to reduce emissions and become a renewable energy superpower. These include the $20 billion Rewiring the Nation program to modernise our electricity grid and infrastructure so they can support our renewable energy based system, the $1.9 billion Powering the Regions Fund to support the decarbonisation of existing industries and the creation of new clean-energy industries, the $6 billion critical minerals facility to grow our critical minerals production sector, the $2 billion Hydrogen Headstart program supporting development of large-scale renewable hydrogen projects and, of course, our government's $15 billion National Reconstruction Fund to help diversity and transform Australia's industry for a net zero economy.

The authority will ensure workers receive the support they need to make the most of the opportunities here and in the future, working with employers, unions and others. As part of this, the bill will establish the legislative framework for the Energy Industry Jobs Plan. Administered by the authority, the plan will enable the use of pooled redeployment arrangements. These will support workers in closing coal-fired power stations and closing gas-fired generators and their dependent suppliers to transition directly to a new job. Workers in a closing facility will have opportunities to be redeployed into a new job with another employer in the same or similar industry. Closing or dependent employers will be encouraged to participate voluntarily.

At this point, I want to reflect on my previous work with workers in industries where there had been disruption and displacement. I know how difficult many of those workers found obtaining good, well-paid, secure jobs, so it's really important—and I'm really proud—that our government is taking this really positive step to set up the Net Zero Economy Authority to ensure that no workers are left behind as our economy transitions.

Our largest coal-fired power stations are run by mature corporations. They often have strong plans in place to support their workforce as they prepare for closures. Indeed, we expect many of them to put their hand up to participate in the Energy Industry Jobs Plan. Notwithstanding that, the bill provides the Fair Work Commission with powers to require their participation as a fail-safe to make sure the transition is orderly. It enlivens enforceable obligations for those closing employers to provide transitional support to their employees subject to operational requirements. The authority would encourage receiving employers to participate voluntarily. Those receiving employers that put their hand up will be in pole position to grab highly skilled and experienced workers. This community of interested employers will give workers the greatest opportunity to secure alternative employment.

The proposed model for the plan reflects the outcomes of detailed consultations with employee and employer groups. This is all about supporting workers on the front line of the energy transition and supporting businesses to access the skills and experience that they value. Helping workers and their families stay in place helps communities stay whole.

On a functional level, the Net Zero Economy Authority will promote orderly and positive economic transformation as the world decarbonises. The authority will do this by helping to facilitate the achievement of Australia's greenhouse gas emissions reduction targets and, in doing so, assist Australia's transformation to a renewable energy superpower. We'll also seek to ensure Australia's regions and workers are supported through and benefit from the associated economic transformation as we seek to transition our economy in a considered and sustainable manner.

This is going to be one of the most significant economic shifts we've seen since the Industrial Revolution, as previous speakers, including the Prime Minister, have said in this chamber. The scale and significance of global efforts to reduce emissions will absolutely transform industries and economies. While currently an emissions-intensive economy, Australia's net zero transformation will lead to significant economic and workforce transition. While this transition is important, it's important to also look at the opportunities that communities are going to receive as a result of that transition through the industry jobs plan and through the guarantees there.

We know we need to engage stakeholders widely. We've had broad support through our consultation process. Indeed, Jennifer Westacott, the former Business Council chief executive, described this as an opportunity for better jobs and better living standards. Steve Murphy, the National Secretary of the Australian Manufacturing Workers Union, explained that this delivers on a promise. That's what our government is doing and what this bill will do—making sure, when we're moving into a net zero economy, as our industries are transforming and transitioning, that we're not leaving communities behind.

I know that many in my own community of Chisholm are really passionate about the positive steps our government is taking to move into a net zero economy. I want to acknowledge some of the local groups that are making a positive difference for the environment locally and are fierce advocates for a carbon-zero future. These groups include Baby Boomers for Climate Change Action, the Australian Conservation Foundation Chisholm Group, the KooyongKoot Alliance, the Friends of Scotchmans Creek and Valley Reserve and the Friends of Damper Creek Conservation Reserve.

I believe that Australia's future is in renewable energy and that there are enormous opportunities that we as a nation can seize. I'm proud of our government's reliable renewables plan, which will deliver 82 per cent renewables by 2030. I'm proud to be part of a government that will, through this bill, help position this nation and our communities to take advantage of the opportunities that a transition to a net zero economy offers us. I'm really proud that, in that transition, we will support workers and industry and make sure that no community is left behind through positive and necessary generational change.

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