Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. This government is now in its fifth year in office, and the state Liberal government of New South Wales has been in office that entire time. Can the Prime Minister confirm that the average Sydney household is paying almost $1,000 more in power bills since this federal Liberal government was elected to office?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I can confirm to the Leader of the Opposition that during Labor's time in government electricity prices doubled. They doubled. And I can confirm that the policy errors the Labor Party made in government and continue to make at state levels continue to put our energy market, the sustainability of Australian businesses and the affordability of electricity in Australian families' homes at risk.

We know exactly what they did, and we saw another confessional creep-back today by the Leader of the Opposition on gas. We know that, when Labor was in government, they decided that we should open up the east coast to exports with no protection given for the domestic market. That was their decision. They took that risk. They were warned against it by the electricity market operator and by the energy department here in the federal government. They took that risk. They were warned.

The member for Port Adelaide first said he knew nothing about it. Then, finally, he confessed. And then—

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, a point of order on relevance. What about the $1,000 extra that Sydney householders are paying on his watch?

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will resume his seat.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

So the member for Port Adelaide confessed. But, as Mark Twain said, confession is good for the soul but bad for the reputation, and it definitely signed the member for Port Adelaide up to the group that put this extraordinary pressure on Australian businesses, on Australian jobs and on Australian families. We're taking the tough action to bring gas prices down, and they are coming down. They are coming down.

But we saw another confession today. They keep on coming. It's like a virus on the Labor side of politics. They're all being driven to confess. Not so long ago, the Leader of the Opposition stood shoulder-to-shoulder with his comrade the Premier of Victoria in opposing the exploration and development of gas under the state of Victoria—onshore conventional and unconventional gas. We've had every piece of advice imaginable from Finkel, from AEMO and even from the government saying that gas has to be explored and developed in Victoria. This was resisted by the Labor Party.

But now, in a blind panic, the Leader of the Opposition rushes out in front of the parliament and says: 'Oh, I've changed my mind. I think they should be exploring for gas in Victoria.' It's good to see he's putting his toe into the waters of the real world, but he's got to fully commit. (Time expired)

Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on what the government is doing to ensure that there is no gap in reliable base-load power for households and businesses, including in my electorate of Robertson? Is the Prime Minister aware of any alternative approaches?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for her question. She well understands the importance of reliable base-load power. So much of it is generated in her electorate and, indeed, for the benefit of all of the families and businesses in her electorate. The truth of the matter is that we have for a long time in Australia been substituting high-emission dispatchable power with low-emission variable power. What that has done, as everyone should understand by now, is put our electricity system at grave risk. We cannot afford to have another large base-load generator go out of operation unless there is the adequate base-load power to replace it. We cannot have another Hazelwood. The consequence of Hazelwood was that wholesale prices in New South Wales alone went up by nearly double—by over $50 a megawatt-hour. Talk about why electricity prices are going up; that is a big part of the answer to that question.

When we were told by AEMO, who we asked to report on this, what would happen if Liddell closed as forecast in 2022—they said there would be a thousand-megawatt gap in base-load power—the obvious solution to that was to keep Liddell going for a longer period. Plainly, that was the most obvious solution. You would think the Labor Party would recognise the obvious, but, oh no, they turned their back on that just like he turns his back on me at the moment. I'll tell you who's not turning his back. The member for Hunter is not turning his back on Andy Vesey. Oh yes—the Labor Party are not prepared to protect tilers and plasterers who are not part of a CFMEU approved contractor. They're not prepared to protect workers on building sites from union thuggery and bullying, but they are quick to rush to the aid of multimillionaire American chief executives of giant electricity companies. 'Well,' says the member for Hunter, 'Andy Vesey is being bullied by the Prime Minister.' Bullied! He couldn't even sell that to Patricia Karvelas. She came back and said, 'Come on. Do you really think he's being bullied?' 'Oh yes,' he said. He goes on and on about the bullying. He rushes to aid him: 'Andy Vesey was bullied into taking this proposal to the board.' He said, 'Of course, when the Prime Minister stares you down,'—most people would regard that as a compliment by the way—'you say'(Time expired)

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Environment, Climate Change and Water) Share this | Link to this | Hansard source

My question is to the Prime Minister. Before coming to office, the Liberal Party promised families they would be $550 a year better off because of lower power prices. But isn't it actually the case that the average Sydney household is paying almost $1,000 more for their power bills every year since this Liberal government came to office?

Government Members:

Government members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Before I call the Prime Minister, the Leader of the House will cease interjecting, and the member for Hughes is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The $550 figure was confirmed by the ACCC in a report to the minister dated July 2015. So I refer to the ACCC. But I want to get back, on the subject of electricity prices, to my friend from the Hunter—Andy Vesey's friend. The single most obvious solution to the problem created by the closure of Liddell is to keep Liddell going for a longer period. We've suggested another five years because, if it closes in 2022, it will deliver a shock of the scale of the closure of Hazelwood—and we know what happened then. We know that caused a big spike in electricity prices, and there is no doubt that, if Liddell were to close in 2022 without that replacement baseload power, you would get a similar shock. The only beneficiary from that—let's be frank about this—

Dr Mike Kelly interjecting—

is AGL and the other big energy companies. In a tight energy supply market, prices go up and they do well; that's why they're making such big profits.

Mike Kelly (Eden-Monaro, Australian Labor Party) Share this | Link to this | Hansard source

It's called privatisation, Malcolm!

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Eden-Monaro is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The honourable member over there from Eden-Monaro talks about privatisation. He should be aware that the biggest price gougers—

Dr Mike Kelly interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Eden-Monaro has been warned. I'm giving him the benefit of the doubt that he didn't hear because he continued to interject. If he interjects again, he'll be ejected from question time.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What is most concerning about the position of the member for Hunter is that he has declared that not only is he in favour of AGL's plans but he's been part of them. He says: 'Andy Vesey has had these plans on the books for a long time. I've been very aware of them. I've been supporting them since 2015. He said he needs to put the final touches on the plan before bringing it back to the Prime Minister. It's a good plan'—it's the Vesey-Fitzgibbon plan. That'll go down really well at the workers club in Muswellbrook, I can tell you. There it is.

The reality is that the people that pay the cost for this incompetent Labor policy are the people of Australia—the businesses of Australia and families of Australia. They're the ones that have to pay the blackout bill.

Tony Smith (Speaker) Share this | Link to this | Hansard source

Before I call the member for Dunkley, the member for Ballarat now also joins the list, and the member for Rankin is warned. And the Leader of the House is in no position to lecture anyone on interjections.