Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy. Minister, the proposed HRL coal fired power station in the Latrobe Valley will have a pollution intensity similar to a black coal fired power station and will pump out over two million tonnes of pollution a year. Given we are now all moving to put a price on pollution and the Victorian EPA has refused to give full approval to the coal fired station, will the government now withdraw the $100 million in funding flagged by the Howard government but not yet handed over to the company?

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

The member's question goes to an announced grant by the coalition government early in 2007 by the then member for Groom, as minister for resources and energy, and the member for Wentworth, as minister for the environment. It was actually announced during a time when the coalition, led by Prime Minister Howard, actually believed in policy rather than being a policy-free zone, which is the area in which the coalition finds itself. I also remind the House that at the time the coalition, which was led by a leader who believed in making hard decisions on policy, was committed to putting a price on carbon.

The question goes to the heart of how we as a community can make a breakthrough on clean energy. Clearly, we appreciate and understand that the electricity sector is not only an essential service to the Australian community but also a major source of greenhouse gas emissions. Our government is committed not just to trying to take forward the debate on clean energy technology but also to putting in place a market mechanism based on a price on carbon side by side with a renewable energy target, which creates a framework for the market to work out the best form of clean energy. In that context, we regard the original announcements by the then coalition government as part of our endeavours for a $5 billion commitment to clean energy technology to take forward our opportunities for a baseload reliable energy sector in Australia which is also premised on reducing emissions.

Regarding the question raised by the member, I remind him that it was part of a potential range of grants by the then coalition government that included Solar Systems, which was a solar power opportunity based at Abbotsford in his electorate of Melbourne. I will continue to progress the HRL proposal in the same way in which I will progress the Solar Systems proposal now taken over by Silex because of a failure of the Solar Systems investors with respect to their capacity to commercialise that solar opportunity.

Let's go to the facts around where the HRL proposal is at the moment. Firstly, the EPA Victoria's part approval of HRL-Dual Gas Pty Ltd does not trigger any Commonwealth payment. Secondly, no low-emissions development funds have been paid to the project to date. Thirdly, the government is continuing discussions with Dual Gas and the Victorian government as to where we go with the project in the future. In essence, we will continue to work with the proponent and the Victorian government to assess whether this project meets the conditions precedent established by the coalition government not only with respect to the HRL project but also, I might say, with respect to the original announcements going to Solar Systems, a solar based opportunity to actually make a breakthrough on clean energy.

I will continue to apprise the House as we advance the capacity of these projects that meet the conditions precedent established by the original announcements in terms of both HRL and Solar Systems.