Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Energy and Resources) Share this | Link to this | Hansard source

My question is to the Minister for Resources, Energy and Tourism. I refer the minister to the Frontier Economics report released yesterday. Frontier’s analysis shows that, under the government’s emissions trading scheme, power bills for the average household will rise by up to $240 per year more than under Frontier’s proposal. Minister, why is the government so determined to ram through a flawed emissions trading scheme rather than discuss alternatives which will keep power bills for households lower?

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

I thank the honourable member for the question. In doing so, can I say that the issue of a balanced carbon pollution reduction scheme in association with the Renewable Energy Target has been subject to serious deliberation by the government and the broader community for a considerable period.

I am pleased to note that the member for Groom has finally noticed the debate that is occurring in the community at the moment and the requirement for us to actually put in place a system which makes progress on the environmental front whilst also ensuring energy security for Australia. In that context, the operation of the electricity system is of primary importance to the government because energy security is the key to economic activity and growth in the future.

I might also say that it is about time the opposition appreciated that they, in government, previously indicated that an introduction of an ETS involved a price on carbon and a rise in the price of electricity so as to change the behaviour of the Australian community, both in households and in the business community. It is for those very reasons that the government have been in detailed discussion with the generators for the purposes of ensuring that we can guarantee energy security in the future and putting in place compensation, which will assist in changing the behaviour of the broader community whilst also minimising the impact on families and people on fixed incomes, such as pensioners.

In that context, can I say that if the honourable member for Groom is serious about getting the electricity system right in Australia in respect of the danger of lights going out in the future then he should be arguing in the coalition party room that it is time for us to end this debate so that we finally put in place a price on carbon in association with renewable energy targets. I say that because, as the previous minister, he understands that there are major decisions to be made in Australia in terms of future investment for the purpose of generation capacity which will guarantee energy security in Australia. At the moment, the business community is unable to make those decisions as it has no guarantee as to the investment horizons that will exist in the future because of the failure of the opposition to be serious about this debate.

Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Energy and Resources) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The point of order is relevance. The question was not about energy policy in Australia. The question was about the cost of electricity—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Groom will resume his seat. The minister will respond to the question.

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

Can I say in response to the honourable member that the cost of electricity in Australia is very much related to the security of energy, because we are fast approaching the position of peaking in respect of our energy capacity in Australia. That goes to the very requirement to finalise this debate this week. As Minister for Resources and Energy, I require a price on carbon to be determined sooner than later, and I also require a renewable energy target to be in place so as to bring on a further economic stimulus package for a potential huge investment in the renewable energy sector in Australia. By resolving those issues we will not only get security in place but also have a capacity to put in place the necessary compensation to assist low-income families and people on fixed incomes as part of enabling us to make this adjustment to a low-emissions economy.