Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Change, Environment and Urban Water) Share this | Link to this | Hansard source

The Save Our Solar (Solar Rebate Protection) Bill 2008 is a private member’s bill which seeks to overturn the Rudd Labor government’s decision to means test the solar rebate of up to $8,000 per household. The previous coalition government raised the existing solar rebate from $4,000 per unit to a maximum of $8,000 per unit as a budget measure in 2007. Demand for solar panels under the rebate subsequently tripled. On 9 May 2007, then Prime Minister John Howard stated on Sunrise that:

As many households as want it can have it ...

On budget night 2008, the Rudd Labor government issued a non-reviewable administrative order which introduced an immediate means test with a maximum threshold of $100,000 income per household as the cut-off point to qualify for the solar rebate.

The Rudd Labor government’s own modelling indicates that this will reduce demand for the rebate by two-thirds. The general industry experience has been in line with the Rudd Labor government’s expectation of a two-thirds drop in demand. There are two effects: first, small business has already begun to lose both business and jobs; second, as a system generally costs between $15,000 and $20,000 per household, this outlay is beyond the reach of most households.

The decision was in breach of Labor’s election promise to maintain the rebate and there was no consultation with or warning to industry. The decision has created anger within the small business sector and has already led to job losses. Importantly, it has undermined the Rudd Labor government’s climate change credentials, its standing with small business and confidence in the Minister for the Environment, Heritage and the Arts, Peter Garrett. Against that background, the save our solar bill is a private member’s bill designed to remove the means test on solar panels by making the government’s administrative order a disallowable instrument.

This decision of the Rudd Labor government is in the process of destroying this small business sector. It must be reversed and this bill seeks to reverse this disastrous decision. Phil May of Solartec has summed up the effects of this decision:

They have totally destroyed it—

the solar industry—

absolutely and totally ruined it.

The Managing Director of Conergy, Roger Meads, has said:

Following the government’s solar means test announcement, Australian families have now cancelled 80 per cent of their solar system orders due to this cost being prohibitive, meaning less solar panels on roofs.

The Communications Director of the Clean Energy Council said on 20 May:

The government has killed the industry stone cold dead.

She also said:

We’ve been blindsided. The industry was not consulted and the consultation we had was not about this.

These are just some of the many examples of hardship experienced by solar panel operators, installers and makers in Australia. Their stories are numerous. They have come through the doors of my office, they have written, they have faxed and they have phoned, and their hardship is real. That is why we have introduced this bill: first, to keep faith with Australian families who want to put solar panels on their roofs; and, second, to protect people such as Phil May and Sophia Moody who own and operate a solar small business. I hope and ask that the government does not gag this bill but allows genuine debate in this the House of the people on a topic which is important to the people so it can serve its role as a parliament for the people of Australia and protect the solar industry. I commend the Save Our Solar (Solar Rebate Protection) Bill 2008 to the House.

Bill read a first time.

Kelvin Thomson (Wills, Australian Labor Party) Share this | Link to this | Hansard source

In accordance with a standing order 41(d), the second reading will be made an order of the day for the next sitting.