Pat Conroy (Charlton, Australian Labor Party) Share this | Link to this | Hansard source

Energy production and distribution is very significant to my local economy. Lake Macquarie is, of course, home to the largest power station in the country and a number of operational coal mines. With the Hunter's stake in the future of energy production being high, we must be attuned to the changes that lay in store for the sector. The once state-owned energy sector has largely been acquired by the private sector, and we know the distribution arm is soon to follow. Removing government, and the obligations that go with it, changes the sector and its priorities. But, if all eyes are on the bottom line, what does it mean when the private sector pulls out?

AGL Energy, the owner of Liddell and Bayswater power stations in the Upper Hunter, announced in April this year that they would 'take the lead' in the decarbonisation of the energy sector by making a commitment to not build, finance or buy new coal-fired power stations and that they would not seek to extend the life of existing stations. This is not just a commitment to the environment, though that should not be undervalued. This is a major stakeholder in the energy market making it clear that the future of the sector is not in conventional coal-fired power. The future is renewable energy. And the future is now.

This is not just a red flag for the energy sector. The move away from fossil fuels will have an impact on coalmining, which is already in transition as a result of low export prices. It is no secret that the burning of coal for energy, without capturing the carbon, is problematic in a carbon constrained world. More than anything, it will be action at an international level that will have the greatest impact on coalmining in Australia. In particular, China's and India's transformation of their domestic energy sector, resulting in declining coal consumption, is a warning for coal exporters. This will accelerate as the world commits to post 2020 emissions reduction targets.

Our international counterparts have set reasonable and achievable emissions reduction targets. The US has a reduction target of 41 per cent of 2005 levels by 2030. The UK has a 48 per cent and Germany a 46 per cent emissions reduction target. In comparison, the Prime Minister has set a reduction target of only 26 per cent. Does he believe, in all seriousness, that Australia should aspire to have one of the lowest emissions reduction target of any developed country? Of course he does. This is a man who once referred to climate change with a scatological reference. This is a Prime Minister who tried to decimate the renewable energy target and the Clean Energy Finance Corporation. He doesn't like windfarms, just three-word slogans. Tony Abbott is a threat to our future economy in that he fails to grasp the opportunities presented to us by this change. Worse, he is doing a disservice to every worker in the energy and coalmining industries in the country, and in particular the Hunter. Tony Abbott's approach is downright stupid. He has his head in the sand. Under this government's approach, we will become the rustbelt economy of the Asia Pacific. We will see carbon tariffs imposed upon us, and we will be under intense pressure from our neighbours as a result of the government's arrogant post-2020 emissions reduction targets. We need a smarter approach—and there is one.

At our National Conference last month, Labor adopted a goal to derive 50 per cent of Australia's energy mix from renewable sources by 2030, in conjunction with an efficient emissions trading scheme. For this to work, we need to do more to embrace the clean energy industrial revolution, and the Hunter is in a great position to take part. The goal is to have prosperous and secure jobs going into the next century. A comprehensive approach must be grounded on an emissions trading scheme, because it is the most efficient way to reduce emissions. Importantly, Labor's policy will also put in place decent structural adjustment policies for affected communities. We are not afraid to have hard and honest conversations with workers, industry and unions about the future of our industries. Governments of all persuasions have undertaken structural adjustment schemes. Some have worked, some have been window-dressing. Good ones provide necessary assistance to communities and businesses to help them adapt to change, to invest in alternative industries on a truly economically sustainable basis.

I genuinely believe that my region is up to this challenge. This country once led the world in solar research, and we can do it again. The Hunter can be at the forefront. We have got the best energy workforce in the country. We have got massive transmission and generation infrastructure. We have got great research facilities, including the CSIRO's clean energy flagship and the National Institute of Energy Research at the University of Newcastle. If we do this properly, the Hunter will not stop being an energy hub. We will simply take the necessary steps to move from being a conventional energy hub to a clean energy hub, and we can do this in the interests of our nation and my region.