House debates

Tuesday, 4 June 2024

Bills

Net Zero Economy Authority Bill 2024; Consideration in Detail

4:47 pm

Photo of Allegra SpenderAllegra Spender (Wentworth, Independent) Share this | Hansard source

I move the amendment circulated in my name:

(1) Page 79 (after line 7), after clause 80, insert:

80A Review of the operation of this Act

(1) Every 4 years, the Minister must cause an independent review to be conducted of the operation of this Act.

(2) Without limiting subsection (1), the review must:

(a) examine the effectiveness of the Authority in performing its functions, including against the object of this Act in section 3; and

(b) having regard to the object of this Act, examine the appropriateness of the following definitions in section 5:

(i) closing employer;

(ii) dependent employer;

(iii) receiving employer; and

(c) make provision for public consultation.

(3) The first review must commence as soon as practicable after the end of the period of 4 years after the day this Act commences.

(4) The persons who conduct the review must give the Minister a written report of the review as soon as practicable and, in any event, not later than 9 months after commencement of the review.

(5) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

All the indicators are flashing red when it comes to the climate crisis. The year 2023 was the hottest year on record, and this record already looks like being broken in 2024. Climate scientists are telling us we're going to blast past 2.5 degrees, and the Great Barrier Reef is experiencing yet another mass bleaching event. To avert the worst impacts of global heating, we need to rapidly accelerate the transition. We need to get off fossil fuels, build the green industries of the future and help workers and communities through the process.

The clean energy transition will be a big challenge for the Australian economy. We'll need to shift people and resources out of coal and gas, massively ramp up renewable energy and develop the workforce to power the industries of the future. It's a transition that won't happen overnight, won't always be easy to manage and won't succeed without proper coordination, and that's what this bill is all about.

The aim of the Net Zero Economy Authority is to help facilitate investment, coordinate policy and help workers and communities through the transition from fossil fuels to the industries of the future. It's vital we get this right. If we don't, regional communities will be left behind, support for the transition will be fatally undermined and we'll miss out on a huge economic opportunity. The new authority has big responsibilities: keeping communities together, ensuring the benefits of the transition are shared, and listening to and learning from communities when we don't get things right. This is what the authority and this legislation must deliver.

This is a good bill and it has broad support from the climate movement, business groups and unions. That's a great place to start. But there is no doubt this bill could be improved, and my amendment seeks to do this. In particular, I'm concerned the authority's scope is too narrow, focusing exclusively on coal-fired power station workers and the mines that supply them. With 90 per cent of coal going offline in the next decade, it's right that these workers are the first priority for support. But for the authority to have enduring impact it will need to work across a broader range of industries over time and adapt its activities as our economy transitions. For example, we know that, as the world economy decarbonises, demand for our fossil fuel exports will reduce; yet, as currently drafted, this legislation precludes the authority from supporting people working in coal and gas mining for exports. A worker in the Hunter Valley at a coalmine associated with a power station would be eligible for support, but a worker in the same region at an exporting coalmine would not. That's despite those two people doing the same job, facing the challenges if their mines close, and perhaps even living next door to each other. The government should have drafted legislation that was broader in the scope of industries the authority could support and mandated an annual plan to ensure focus of the authority's activities from year to year.

If this can't be done right now, the government should at least be open to revisiting the scope of the authority's activities in future. My amendment helps to achieve this by inserting a review clause into the legislation. The review would require periodic assessment of whether the scope of industries supported is appropriate and whether the broader objectives set out in the legislation are being achieved. The first review would take place after four years, enabling the authority to support several coal closures before looking at how things could be done better.

I understand that the government won't be supporting this amendment, but the reasons for this are unclear. I know the bill requires the CEO to conduct a narrowly focused internal review of the Energy Industry Jobs Plan within 12 months, but this is not the kind of substantive, independent review that also looks at the scope of activities and whether the authority is delivering results, so I encourage the government to think again and support this commonsense amendment.

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