Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

I rise to welcome the successful passage of the Renewable Energy (Electricity) Amendment Bill 2015 through the Senate a couple of nights ago and particularly the inclusion of wood biomass as a renewable energy source. Passage of this legislation is a welcome outbreak of common sense which will result in more than 23.5 per cent of Australia's electricity being derived from renewable sources by 2020.

Importantly for Tasmania, the renewable energy target includes biomass as an eligible form of renewable energy generation. This allows waste that otherwise would be burnt or would rot on the forest floor to generate power and reduce emissions. It is no different to when you slaughter a beast for food. I have next to me a Nationals MP, Mr Pitt, who will understand this better than most. When you do slaughter a beast for a group of families—as we used to a couple of years ago—and share it amongst those families for food, you do not do that just for the eye fillet. You use every piece of the animal, and this is no different. You do not use that wonderful sustainable timber resource in Tasmania just for planks; you use everything, and biomass is part of that. It is a sensible, evidence based way of making sure that we get the most out of our resources.

The use of biomass has the potential to deliver a boost to Tasmania's earnings, creating hundreds of new jobs, sustainable environmental benefits and a shot in the arm for regional communities like mine. Indeed, a recent survey found that in the seats of Braddon, Bass, Franklin and Lyons there was either support or strong support for the re-inclusion of wood waste in the renewable energy target from 67 per cent of those surveyed. It beggars belief that Tasmanian Labor politicians would have opposed this sensible, evidence-based approach to getting the most out of this wonderful renewable resource. Even the Intergovernmental Panel on Climate Change—and I know that those opposite are keen to quote the IPCC—recognises the environmental benefits of using biomass.

This bill protects industry and jobs by providing 100 per cent exemption for emissions-intensive, trade-exposed industries like Bell Bay Aluminium from costs associated with the Renewable Energy Target. I would like to put on record a letter that I received from Mr Ray Mostogl, the general manager of Bell Bay Aluminium, in my electorate of Bass. Mr Mostogl writes:

Dear Mr Nikolic,

Bell Bay Aluminium … welcomes the passage of the Renewable Energy Target … legislation through the Parliament and thanks you for your support in achieving this outcome which is so vital to our industry …

You and your colleagues' support through many years of negotiations to finally achieve this outcome cannot be underestimated. We know you have been our champion behind the scenes and we thank you for this. You were an invaluable link to my staff which enabled us to best work together to achieve this outcome.

On behalf of the 430 people employed directly here at BBA, and many more families who are indirectly supported by our site, we thank you for your efforts.

Mr Mostogl included a handwritten note, which has touched me deeply, because Bell Bay Aluminium is one of that dying breed of organisations in Tasmania called big business. We do not have many of them left anymore, and this company supports the employment, directly or indirectly, of 1,500 Tasmanians, and that is why this is so important. His handwritten note says:

Andrew, there are at least 1500 Tasmanians who have a more certain future and I'm sure say "thank you" for your relentless effort to give us an even chance to compete globally.

I am as proud as punch at this outcome. I am as proud as punch at the fact that what we have done is provided some certainty for the people in my electorate, particularly in areas like George Town which have been doing it too tough for too long. I am pleased that what this means is that Bell Bay Aluminium sees this as easing the burden on their business and providing some more certainty going forward. That is a company that has worked closely with its workers, with unions and with others in recent years to make sure they can be as competitive as they can be. That is why removing this pressure on their business cost is something I am very proud to do.

I conclude by saying that the government that I am proud to belong to is committed to ensuring renewable energy continues to play an important role in Australia's energy mix. This legislation achieves that, and it is great for my electorate of Bass.