House debates

Wednesday, 13 September 2017

Matters of Public Importance

Energy

3:12 pm

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

I've received a letter from the honourable member for Port Adelaide proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The energy crisis created by this Government.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

3:13 pm

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

It was four years ago last week that the Liberal Party made a memorable promise to the Australian people. On a whim, it would appear, the Leader of the Liberal Party then said that there would be 'no cuts to education, no cuts to health, no change to pensions' and 'no cuts to the ABC or SBS' under a Liberal government that might be elected in 2013, and, within only a few months, each and every one of those promises was smashed in the 2014 budget.

But Australians also remember another solemn promise made by the Liberal Party in the lead-in to that election in 2013, and that was that Australian households would be $550 better off in their energy prices if a Liberal government were elected in 2013. And this, perhaps unlike the other promise, was not a whim at the end of an election campaign. This was a promise that the member for Warringah repeated day in, day out, as he angrily marched up and down the country railing against climate and energy policy. Well now, into the fifth year of this government, Australians also know that that was a lie as well. Far from being $550 better off under this government, the average Sydney household is almost $1,000 worse off just in its electricity bills since 2013—$1,000 worse off. That is a $1,500 gap every year. Indeed, it's likely to be a gap that grows next year.

The Prime Minister, in question time just now, sought to deny the AER data. When I tried to table the data to show the government what we were relying on in those figures, the Prime Minister and the Leader of the House denied me the ability to do that. So what I will do is read into the transcript the AER data that The Australian newspaper published on their front page on 10 July 2017. It said:

The regulator data shows the average Sydney household has been hit with annual electricity bill rises of 11.6, 11.7, 10.6, 10 and 10.8 per cent since June 2013 …

Cumulatively, that is a 75 per cent increase in power bills since 2013, when this government was elected. An average household power bill is $935 up, not $550 down, from 2013. Businesses also haven't been spared from this. Businesses have been talking to members on both sides of the House, I'm sure, about the power contract negotiations they're now subject to that are seeing power prices go up by as much as 100 per cent for businesses across Australia under this government.

This government's stunning failure has also seen closures of seven old coal-fired power stations across the system. That amounts to a loss of 4,000 megawatts of power, which is equivalent to six million households, or every household in Sydney, Brisbane and Melbourne combined. Old coal-fired power stations close. We on this side of the House recognise that reality. The problem, though, is that there is no additional supply being built. The Prime Minister talked about 2½ thousand megawatts of gas-fired generation being added to the system in the last decade. That was all under us. Not a single new gas-fired generator has been added under this government. In a shocking indictment of this government's failure on energy policy, the AEMO reports last week warned that—

Mr Frydenberg interjecting

That was opened well before you were there. The AEMO reports last week warn that two-thirds of our nation are now at risk of blackout—

Mr Frydenberg interjecting

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order! The Minister for the Environment and Energy will remain silent.

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

Two-thirds of our nation is at risk of blackout in coming summers because while these stations have closed under this government's watch, nothing has been built to replace that generation, and we are short.

It is not just skyrocketing power prices and the risk of blackouts that have emerged under this government; every other indicator of energy policy has been a stunning failure on this government's watch. Pollution is up and gas prices are up—and this Prime Minister won't pull the trigger, as my colleague the member for Blaxland has been saying time and time again over the course of this week. In the renewable energy industry, a massive jobs driver around the world, one in three jobs, according to the ABS, has been lost since this government came to power, while jobs in that industry around the world have skyrocketed by 45 per cent.

As Australians open up their power bills with skyrocketing prices, and as they contemplate the risk of blackouts across two-thirds of the nation in coming summers, they understand who is to blame for this mess: this Prime Minister; his predecessor, the member for Warringah; and the minister for energy. We know why. It is because, as in so many other areas of policy, this government had a plan to dismantle and destroy policy but put nothing in its place. For more than four years this country has been without an energy policy.

If only we had a plan. If only there was a blueprint somewhere to get us out of the deep energy crisis this government has plunged the nation into. Of course, we do have a plan—it's a report that this government commissioned from the Chief Scientist of Australia, Alan Finkel. It's a blueprint that, if implemented, will deliver more renewable energy, more gas-fired power, more batteries and storage, more reliability into the system and, most importantly of all, lower prices for Australian households and businesses. It's a blueprint that has been endorsed by the states and territories and endorsed by industry.

This morning, we read an article in Fairfax—'Turnbull retreats on clean energy'—that it's not going to be backed by this government. A report commissioned by this government, from its own Chief Scientist, is not going to be backed by this weak Prime Minister. I think it was pointed out in question time that one MP from that side of the House said to Fairfax:

… if we were going to do Finkel's [clean energy target], it would be done already.

And you have to wonder why? There's a deep crisis. There's a clear blueprint that the government itself commissioned. There's strong consensus behind it. There's an opposition willing to engage with it. Well, we know the answer; it has a familiar ring to it. We saw it in The Australian newspaper in an article headed, 'Tony Abbott fuels push from backbench against clean energy target'. In it, the member for Warringah very helpfully outlines his alternative energy policy, which is the heart of the problem here—that is, the coalition's focus is not on reliable power, the coalition's focus is not on affordable power, the coalition is obsessed with this fantasy that Australia's energy future lies in building new coal-fired power stations. That is the plan that the member for Warringah is forcing on this government. We know it is a fantasy. We know from the lending industry, from the banks and from equity investors that there is not going to be a new coal-fired power station built in this country.

Everyone knows that the AEMO report that was released last week on dispatchable power was commissioned by the coalition in the hope that it would recommend new coal-fired power stations as a solution to their energy crisis, but, of course, it didn't do that. It is time for this Prime Minister to stop indulging the fantasy that the member for Warringah drives: that the future of Australia's energy is in new coal-fired power stations.

The future of Australia's energy sector was outlined by the Chief Scientist in a blueprint commissioned by this government. It's more renewable energy. It's more gas-fired generation. It's more batteries and other storage systems. It's more reliability in the system and the lower prices for consumers, businesses, and households that that will deliver. This Prime Minister is weak in refusing to argue against and resist the push by the member for Warringah to take us back to the 20th century. His decision to play politics, the personal abuse, the name-calling, the misleading statements about clear data from their own regulators about what has happened to power prices under this government's watch—it means one thing: Australians will continue to suffer higher prices and they'll continue to suffer the risk of blackouts across summers in New South Wales, in Victoria and in South Australia, across the system, representing two-thirds of the nation's population. If this government doesn't stand up to the member for Warringah and endorse the blueprint delivered by the Chief Scientist, Australian households and businesses will hold this government to account.

3:23 pm

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | | Hansard source

Well, we know that the Labor Party—the party of blackouts and the party of a doubling of electricity prices the last time they were in office—have now sought to repeat the mistakes of their brethren in the Labor states of Victoria and South Australia. They seek to take this energy horror show national. That is what the Labor Party want to do with their 45 per cent emissions reduction target, which will cost the Australian economy billions of dollars in lost productivity, lost economic growth, job destruction and investment lost. That will be the legacy of that policy. Combine that with the reckless 50 per cent renewable energy target, which they said to the Australian people that they would legislate but that they are now seeking to walk away from. Also combine that with their policies to adopt, right across the board, emissions reduction without understanding its true consequence and impact on jobs, investment and growth.

On this side of the House we have been making positive inroads into the energy question. We have ensured that we are providing more domestic gas for users across the country. We've already seen announcements by Origin and Santos that more gas will be made available to the domestic market. We have also seen significant reforms that we've undertaken in the gas pipelines to ensure that there's more competition, more transparency and, ultimately, lower prices. And with transportation of gas being up to 15 per cent of the gas bill and the electricity bill, this can be quite a significant component of reducing power prices. We've taken action with the networks, the poles-and-wire companies that make up the 50 per cent of the household power bill. When Labor was in office, they saw a massive rise in the gold-plating of the networks but they did nothing. They stood still; they sat on their hands. It's the coalition who said we're going to abolish the limited merits review process and put through this House legislation which, now in the Senate, the Labor Party is seeking to push off to committee. Labor didn't do anything when they were in office to rein in the power of the network companies. Indeed, when they were in office we saw a regulator rate of return of around 10 per cent. That has fallen to just above six per cent today, which is worth hundreds of dollars to an Australian consumer.

We on this side have been doing work with the retailers. The retail component of the bill is significant. We've seen high margins, particularly in states like Victoria. We've asked the ACCC to look into that market and to look at the operations of the particular retailers around the country. But the concessions that we're able to win from the retailers are going to be very significant in getting lower prices because, again, the Labor Party did absolutely nothing.

The member for Bendigo has sold out the blue-collar workers in her electorate. The member for Bendigo has nothing to say about electricity prices. The member for Bendigo does nothing to improve the household power bills. If she did, she would speak out in favour of the Turnbull government's efforts to ensure that more information, better information, more transparent information is made available to households by their energy retailers. The fact that 50 per cent of Australian households have not changed retailers or contracts in the last five years despite benefits or gains or savings of more than $1,000 being available to them is quite significant. That is why we've taken action.

As the Prime Minister has indicated, a key part of the energy story, as we transition from more synchronous generation to less synchronous generation, as we move from a system where lots of people are on the grid to more people being off the grid, is having storage in place for wind and for solar in particular. The Labor Party didn't put in place any preparations for the necessary storage. Whether it's the pumped hydro schemes that you see around the country or indeed around the world, which are so vital in providing storage for renewable power, or battery storage, we saw nothing from those opposite. It's only the coalition that has put storage at the top of the policy agenda. And we've started to see big investments underway—whether it's through the Kidston pumped hydro facility that is being looked at in Queensland, whether it's the one in Cultana in South Australia or whether it's Snowy Hydro 2.0.

You have a premier in South Australia, Jay Weatherill, whose only energy policy is to spend $110 million on diesel generators, take more coal-fired power from Victoria and then also invest hundreds of millions of dollars in a gas-fired power generator. But then the big daddy of them all was to have a battery from a bit of Hollywood and a few doughnuts on sale. He thought a battery could solve—

Honourable Member:

An honourable member interjecting

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | | Hansard source

Yes, he had doughnuts at the launch. He thought that some doughnuts, some Hollywood, some Elon Musk and a big battery would be the answer for South Australia's energy woes! But that battery can keep South Australia going for as much as five minutes. That is what the storage answer from the Labor Party is whereas we are investing in Snowy Hydro 2.0, which can add up to 350,000 megawatt hours of storage. That compares to the 129 megawatt hours you get from Elon Musk's battery and some doughnuts and some Hollywood in South Australia.

So the coalition has taken steps around networks, steps around retailers, steps around storage, steps around gas and we are going to see a much more stable energy system. We quickly accepted the 49 Finkel recommendations to ensure that large generators give a minimum of three years notice before they can close—not to mention the requirement that, from now on, wind and solar provide their own levels of storage, which previously wasn't the case. They're just some of the recommendations that we accepted from the Finkel review which will make a difference to the stability of the system.

The Prime Minister was concerned that, with the predicted closure of Liddell in 2022, there would be a supply shortfall in the market. That's why we asked the Australian Energy Market Operator to give us a report into the level of dispatchable power we need in the system, and they indicated that, were Liddell to close in 2022, there would be a 1,000-megawatt shortage of supply. What did the member for Port Adelaide say? He said that this is not a problem. He even challenged the premise of the Australian Energy Market Operator's own findings. What did the Leader of the Opposition say? The Leader of the Opposition said: 'This is a distraction. This is the wrong priority. This is an issue for down the track.' An issue for down the track? This is an issue for today.

That is why the coalition is taking steps, reaching out to AGL and asking them to consider keeping Liddell open for an additional five years or selling it to another party. That is what the AGL board will consider. But the reality is that the Labor Party turned their back on the Australian Energy Market Operator and have turned their back on the recognition that when they were in office they ignored the warnings from the Australian Energy Market Operator and from their own energy white paper about the need to ensure sufficient gas supplies in the domestic market and not to export all their gas overseas.

So we're taking actions across a number of fronts, but the Labor Party is in denial, because that is the party that has seen, in Victoria and in South Australia, a heightened risk of blackouts. My colleagues the member for Chisholm and the member for Deakin would be interested to know that, according to this AEMO report, the state with the highest risk of blackout coming to the end of this year and the state that AEMO is most concerned about is Victoria, where there is a 43 per cent risk of load shedding or supply shortfalls. The member for McMillan would be interested to know that in his own state the Daniel Andrews Labor government has closed down Hazelwood, has restricted gas, has put in a renewable-energy-only target and is doing nothing to ensure the affordability and reliability of the system. The member for Port Adelaide should be ashamed to associate himself with that failed, big experiment in South Australia, from a tired old Labor government, nearly 16 years old. The Labor Party is the party of higher prices and a less stable power system.

3:33 pm

Photo of Pat ConroyPat Conroy (Shortland, Australian Labor Party) Share this | | Hansard source

What a tired charade of a speech from the minister! Even he didn't have the energy to completely utter the myths and untruths they perpetuate. I feel like saying to them, 'Could someone get him an energy drink.' He looked like he was about to collapse halfway through it, and that's because his heart really isn't in it, because this is about position No. 8 for him and this government on energy policy. The truth is they're in their fifth year of government and have managed to completely mismanage energy policy over that entire time. And why have they done that? Because they don't believe in anything except for the petty pursuit of electoral power. Ultimately it's my constituents and the constituents of everyone on this side of the House who pay the price for this mismanagement.

The government have made massive mistakes in energy policy. The first one was that they abolished the emissions trading scheme. By abolishing the emissions trading scheme, they destroyed certainty in the market and destroyed the price signal that was bringing in gas-fired power, which was always going to be the complement to renewable energy. All the modelling for all the legislation that they voted for at given points—the Prime Minister certainly did; he seemed to forget about it in question time, but he voted for it—assumed that gas-fired power would complement renewable energy coming into the market. But they abolished the emissions trading scheme. They dillydallied around the Renewable Energy Target, but eventually they decided to keep it. That meant that more renewable energy came into the market. At the same time, they destroyed investment certainty for dispatchable power, and that's why we're in our current situation.

In their four years of government, we saw seven coal-fired power stations close down. And three of them were in states with Liberal governments. So you can't blame Labor for it. You perpetuate this blame game, but closures of coal-fired power stations occurred under Liberal state governments—seven coal-fired power stations with a total combined capacity of 4,000 megawatts. AEMO has pointed out that we've lost 5,000 megawatts of base-load power over the last decade—and 4,000 of the 5,000 megawatts have come under this government. So they can do their blame game, but the truth is they have been mismanaging power policy since September 2013.

And what have we seen now? They're walking away from the clean energy target. The minister and the Prime Minister don't have the ticker to take it to their party room. And what's the result of all this? We've seen a 75 per cent increase in power prices in Sydney. That is, on average, a $1,000 hit to consumers in our largest city. And that's for people doing it tough, that's for mums and dads on really tight incomes—when wages growth is actually negative, a $1,000 hit to power prices. We've seen a third of renewable energy jobs go. At the same time, renewable energy jobs have gone ahead in leaps and bounds everywhere else—2.5 million clean technology jobs in the United States alone—and we've lost a third of ours.

Why have we done this? Why has this occurred? Because we've got a spineless Prime Minister bereft of any ticker. And there's probably only one person who's more ashamed of the Prime Minister than the people on this side, and that's 'Leather Jacket Malcolm', the member for Wentworth, the man who went on Q&A with his leather jacket, the man who crossed the floor to vote for the CPRS—although he forgot about it today. He's probably more ashamed of his behaviour than even the Labor members of parliament. He wouldn't recognise the man he is now. He is a man who has junked every belief to stay in power, a man who has junked every intellectual belief in the market to stay in power. And it's just not doing him any good. We've seen 19 Newspolls in a row. There are 11 more to go. If he repeats the bluster we saw in question time, they're coming soon.

I've got a message to the Prime Minister and the government. If you're going to be Abbott-light, if you're just going to ape the member for Warringah, there's no point. At least that guy believed in something. He believed in the wrong things, but he believed in what he said. We get three-word slogans from the current Prime Minister. We get the blame game. We get a continuation of the chaos in the energy sector, a continuation of electricity bills $1,000 higher. We get more power stations closing down, more uncertainty and more pressure on our consumers and our households who are doing it tough. Shame on you, government.

3:38 pm

Photo of Chris CrewtherChris Crewther (Dunkley, Liberal Party) Share this | | Hansard source

I rise to oppose the hypocrisy of this motion by the opposition and to, in particular, support the coalition's policy, as well as the Minister for the Environment and Energy's statements before. We need to ensure energy stability, reliability and affordability by our traditional power sources while enabling investment in renewable energy, battery storage and new technologies. We must ensure the lights stay on, and the prices stay low for Australian households and businesses, including in Dunkley.

Ours is a technology-neutral and non-ideological approach. So what are we doing? And what is the opposition's previous track record on this, as well as alternative policies? Firstly, on what we are doing, business as usual is not an option. In July, the COAG Energy Council agreed to immediately act on 49 of the 50 recommendations of Finkel's independent review, which will help drive down prices. This includes a new generator reliability obligation requiring intermittent sources of generation, such as solar, to provide an appropriate level of backup. It also includes energy security obligations to provide the necessary support services to intermittent sources of generation; a new requirement for large generations as well, to give a minimum three years' notice before closing; and, in particular, it calls on states and territories such as Victoria to accept the Chief Scientist's recommendation to adopt a science-based approach to new gas supply and to end their arbitrary bans and moratoria.

On base-load power: the Australian Energy Market Operator's dispatchability report confirms that the accelerated withdrawal of base-load power, as pushed by those opposite, creates major risks. Base-load power is what anchors our electricity system. Government will exaggerate work around this strategic reserve, which will beef up how AEMO currently contracts for reserve generation to manage summer peaks. The Prime Minister has also started discussions with AGL on keeping Liddell operating longer, which is important for families and businesses in terms of affordability. Indeed, we are also working with ARENA on multiple pumped hydro projects in multiple states, and developing Snowy Hydro 2.0, which will increase the generation of the scheme by 50 per cent and add 2,000 megawatts of renewable energy to the National Energy Market. That is enough to power 500,000 homes.

On energy affordability: too many families are not on the best power deals. Fifty per cent of households have not moved retailers or contracts in the past five years, even though savings are potentially significant. So the Prime Minister has secured agreement from retailers on immediate measures, which will be backed up by law, to put families and businesses first. This includes contacting all the customers who are now on expired discounts and telling them how they can save and requiring companies to report to the government and the ACCC on what they are doing to get families onto a better deal, as well as requiring companies to inform customers when their discount benefits end and ensuring that families and individuals on hardship payments will not lose benefits for late payments. Retailers will also contact another one million customers on standing offers, which are normally the most expensive rates.

The Turnbull government will also legislate to remove the ability of networks to appeal the merits of decisions by the Australian Energy Regulator, removing the ability of regulated energy network companies to game the system at the expense of consumers. This reform is critical, given that network costs make up a large proportion of household bills.

On gas: we have finalised tough new regulations in the gas sector to give Australian customers priority access to gas supplies before gas is exported. And we are calling, as I said before, on states and territories to drop their mindless bans on gas exploration and so forth.

At the same time, we are also renewing and investing in our renewable energy market. For example, Australia's emissions per capita and per unit of GDP are currently at their lowest level in 27 years, and Australia is on track to beat its 2020 target of five per cent below 2000 levels by 224 million tonnes. This is better than the 755 million tonnes by which Labor was estimating to fall short in 2012.

So, what's Labor's alternative? They're pushing a dangerous mix of policies that will hit energy security and affordability: a 45 per cent emissions reduction target by 2030; a 50 per cent renewable energy target by 2030; an emissions intensity scheme; Labor's climate action plan, forcing the closure of coal-fired power plants; and no energy security plan. Labor's track record, whether it be on the carbon tax or other measures, shows their hypocrisy around this issue, and I call on them to take proper action, like we are doing. (Time expired)

3:43 pm

Photo of Matt ThistlethwaiteMatt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | | Hansard source

Colleagues, who said this?:

I will not lead a party that is not as committed to effective action on climate change as I am.

That was the old Malcolm Turnbull, the bloke that used to get around in the leather jacket—

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order! The member for Kingsford Smith will refer to members by their titles.

Photo of Matt ThistlethwaiteMatt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | | Hansard source

The old Prime Minister, who used to get around on Q&A in his leather jacket, talking about climate change and effective policy on energy.

Who said this: 'Abbott's climate change policy is BS'? Now, of course, I'm using an acronym there for the last word in the title of this particular article that appeared in The Sydney Morning Herald on 7 December 2009. That, of course, was the old Prime Minister, who was speaking then of the member for Warringah when he was the Prime Minister, and the climate change and energy policy that this government had. The member for Wentworth, as he was at the time, said that he would:

… tell a few home truths about the farce that the Coalition's policy, or lack of policy, on climate change has descended into.

He then went on to describe in quite colourful language the member for Warringah's—as the then Prime Minister—climate change policy and what a complete joke it was. Once again, that was the old member for Wentworth. He's now adopted, holus-bolus, the policy that he once described as complete BS. Those were the days when the member for Wentworth had principles and believed in something. He was the bloke who actually crossed the floor to vote for Labor's Carbon Pollution Reduction Scheme when he believed in taking action on climate change.

That was, of course, before he was elected to the leadership of the Liberal Party and before he did that dodgy backroom deal with the right wing of his party and the National Party, a deal, by the way, that he refuses to release publicly—so much for transparency. He sold out his beliefs and sold out the future of all our kids through refusing to take real action on climate change. 'Turncoat' Turnbull, the ultimate sellout, not only adopted Tony Abbott's view of climate change and energy policy but now actively advocates for it as his policy. He once described it as BS.

Australians are asking: what happened to the old member for Wentworth? What a disappointment he is—some might say a fizzer. The Australian people are suffering because this bloke sold out his principles on climate change and energy policy. I'm talking about people in my electorate—for instance, the pensioner who now can't afford to switch on their heater at night to warm themselves because of energy prices; the family struggling to pay their bill and having to enter into a repayment plan with their energy retailer because they simply can't afford the increase in the cost of their electricity; and the small business that has to go out of business because they can't afford to pay their energy bills anymore. In fact, in the city that I live in, the average energy bill has risen by $1,000 since this government came to office. All of this is because this government is in chaos and cannot make a decision about energy policy to guarantee investor certainty and bring on additional supply.

There are two basic reasons why Australians are facing a massive increase in their energy prices. One is that Liberal governments privatised the network. They privatised the poles and wires and the generators in New South Wales and Victoria and South Australia. Governments don't own them anymore, so they can't force these private companies to bring on additional supply. And guess what? Those companies are not investing in new supply because they know that the federal government have made a shambles of energy policy, are chaotic and can't make a decision. They can't make a decision on a clean energy target. The government actually asked Professor Alan Finkel, the Chief Scientist, to advise them on what they should do on energy policy. He issued a report, and the Prime Minister and the energy minister went away and then said, 'No, we can't adopt that. That's far too revolutionary for our party. Our party will never agree with a clean energy target. Go away and rewrite your report.' So Professor Finkel did. He went away and rewrote it, at significant cost to the taxpayer. He watered it down. And guess what? They still can't make a decision on it. They still won't make a decision on a clean energy target, and because of that all Australians are paying through the nose through their energy costs going up. It's an absolute disgrace. Because this government can't make a decision, Australians are paying for it.

Mr Deputy Speaker, I seek to table an article from The Sydney Morning Herald on 7 December 2009, 'Abbott's climate change policy is BS', by Malcolm Turnbull.

Leave granted.

3:48 pm

Photo of Andrew GeeAndrew Gee (Calare, National Party) Share this | | Hansard source

I'm glad we're discussing energy and energy policy today because it will further shine a light on the extent to which those members opposite have turned their backs on coalminers, on the mining industry and on blue-collar jobs. The extent to which they've done that is quite breathtaking. They've cut them loose, and they've cut them loose in the name of transitioning to a new economy. That's what they call it, but what it really means is they're cutting those workers loose and they're all going to lose their jobs. That's what they're on about on that side of the House. They are betraying the very people who built the Labor Party: the workers in the blue-collar jobs and the miners. They are the people that they are betraying. The reason that they're doing it is pretty clear: they're terrified of the inner-city Greens. They're trying to out-green the Greens in the inner cities in Melbourne, in Sydney and in Brisbane. That's what they're trying to do. It's breathtaking, but it's also disappointing.

I grew up in the Hunter Valley and I know those coalmining communities up there pretty well. I grew up with them. I did. Whenever you played sport out in the coalfields you knew you were in for a tough day at the office. They were cold, hard playing fields; they were tough competitors out there. But I tell you what, they're resilient people out there. They're tough competitors, but they're resilient and good communities. They don't deserve what's happening to them. They don't deserve to be cut loose. They don't deserve the betrayal, the abject betrayal, which is going on at the moment, from those opposite. They have been betrayed. All of those coalfields communities in the Hunter have been betrayed. They've essentially been told that they're all going to lose their jobs and that coalmining is finished—it's just a matter of time.

Let's have a look at the Calare electorate and the coal and power jobs that those opposite want to cut loose. Let's have a look at Mudgee. In Mudgee, we've got about 2,500 people working directly in the coal industry. There are probably another 500 or so working indirectly in the coal industry. That's about 3,000 people in the Mudgee area alone. When I've had an issue with the coal industry before, I've called them out. We saved the drip on the Goulburn River just near Ulan. We got that resolved.

What they want to do is to cut the whole industry loose. That's what they're doing. Look at what's happening over in Lithgow, where you've got the Mount Piper Power Station and the Springvale mine. Those two operations together probably have over 600 jobs at stake. Those on that side of the House want to end coal-fired power generation. That's what they want to do, and it's scary. Look at a community like Lithgow. Coal was instrumental in building Lithgow. So many people from the Lithgow community and the coalmining community have supported the Labor Party over the years only to be betrayed by it now. It's unbelievable and breathtaking at the same time. Mount Piper Power Station needs to remain open. It supplies the equivalent of 15 per cent of the electricity supply of New South Wales. There are many people, including me, who would like to see Mount Piper expanded, but not those opposite.

We still have outstanding legal issues regarding the Springvale mine. I don't deign to provide any comment on the Springvale situation, but I hope all relevant parties are able to work to find a resolution to all outstanding issues over there, because under Labor Mount Piper would close. That's what would happen. The Mount Piper Power Station would close under a Labor government. It's terrifying for those communities who've always supported Labor through the years.

I would say to Labor, the Greens and representatives of Lithgow City Council: 'Don't stand with the Greens when their roadshows roll into Lithgow. Don't stand with them and tell those power workers and coal workers that their futures mean nothing and that they won't have jobs.' I would say that to the councillors of Lithgow: 'Tell the coalmining community of Lithgow and the people of Lithgow that you think the coal industry has a future. Tell them where you stand.' All Lithgow city councillors should tell everyone where they stand: 'Don't stand with the Greens. Don't have photo ops with them in local newspapers. Don't tell them that we have to end coal and that we're aware we have to move on.'

These things are happening now. Their allies are doing it now in Lithgow when the Greens' roadshows roll into Lithgow. They need to stop it. Don't have a bet each way. Don't be like Labor and have a bet each way and sell your constituents out. On the one hand they say, 'Oh, yes, we support coal,' but on the other hand they're working, doing everything in their power, to end coalmining and coal-powered generation in this state and in this country.

Ms Husar interjecting

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order! Before I give the call to the member for Lindsay, we do not need a countdown at the end of the previous speaker.

3:53 pm

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I was just trying to be helpful; I'm here to help. It is my great privilege to stand up today and speak on this matter of public importance and follow such a diabolical speech from the member for Calare, over there, who talked about selling his constituents down the river. Let me tell you: I represent an area out in Western Sydney. For those opposite, I'm happy to provide a road map of where that actually is and what area that takes in. Last summer, Penrith experienced 23 days of above-average, 35-degree temperatures and eight days that hit above 40 degrees. We also had a series of long—

Mr Gee interjecting

I'm happy to take the member's interjections. We also had a series of long and hot evenings, including 36 degrees at midnight on 13 July.

Photo of Chris CrewtherChris Crewther (Dunkley, Liberal Party) Share this | | Hansard source

How do you front those miners? What do you say to them?

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order. The member for Dunkley will remain silent.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I don't have any miners in my electorate of Western Sydney, which goes to my point about these morons on the other side not knowing anything about Western Sydney.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order! The member for Lindsay will withdraw.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I withdraw—unqualified. Last February—as I've now tried to say four times while dealing with the interjections from those over there—we had a day that was 45 degrees. Let that sink in—45 degrees in Western Sydney. We have a population that is growing and will continue to grow. That should be no surprise to those opposite.

Mr Gee interjecting

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

The member for Calare is warned. I call the member for Lindsay.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

When he's done, Deputy Speaker.

Honourable members interjecting

Are you a woman?

The DEPUTY SPEAKER:

Order! The member for Lindsay! I will start to evict people in a minute.

When you consider the weather station that takes the temperature in my electorate of Western Sydney is located next to billions and billions of litres of water

Honourable members interjecting

Oh, God. This is outrageous!

Mr Broadbent interjecting

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Order! Member for McMillan

Photo of Russell BroadbentRussell Broadbent (McMillan, Liberal Party) Share this | | Hansard source

She shouldn't have said that. It's a disgrace.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

I am in the chair at the moment. I have given the call to the member for Lindsay. I've got a general warning in this House. The next interjection will be out the door. I call the member for Lindsay.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I'm so glad that they are so interested in what a woman on this side of the House has got to say, what they've actually got to listen to and how they can actually hear what is being said.

Government members interjecting

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

The member for McMillian on a point of order.

Photo of Russell BroadbentRussell Broadbent (McMillan, Liberal Party) Share this | | Hansard source

I'm calling for a withdrawal because she referred to herself in a manner that was demeaning to me in regard to her gender. Absolutely outrageous!

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

There is no point of order.

Honourable members interjecting

Photo of Russell BroadbentRussell Broadbent (McMillan, Liberal Party) Share this | | Hansard source

It was because she happened to be a female member of parliament, not because of the presentation that she was making. It's absolutely outrageous.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

I might not agree with the comment but it was not unparliamentary.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

Deputy Speaker, this is outrageous. I haven't even gone past the first page of my speech notes because of the constant interjections. But, as I was saying, the weather station that records the temperature in the Western Sydney area is located next to the lake system, which is obviously going to record the temperature at a much lower rate than anywhere else. We've got the heat island effect out there. Anybody who lives in Glenmore Park, Jordan Springs or the new development of Thornton will know that it is up to three degrees hotter than anywhere else in Western Sydney.

When we talk about an energy crisis, you can appreciate how hot it gets and how much we are relying on power to cool our homes and also swimming pools so that people can actually cool down. But what gets Western Sydney residents very hot is this incompetent government's energy crisis. Day after day we come in here looking for answers from those opposite, and all they can do is blame us. Well, I've got some news for them: they are in government; they've had the opportunity to fix it. To continue to come in here and blame Labor for something that may or may not have taken place four or five years ago is their incompetence on display on a grand scale.

They've let this problem fester and get to the point where it is now. The time has come though; summer is now on our doorstep. It is 35 degrees today in Western Sydney. It's the 13th day of spring and it's already 35 degrees. The rise of blackouts this summer will be higher than ever before and the residents of Western Sydney have had enough. They've had to swallow the lies and the nasty policies from those opposite and promises of electricity prices going down by $550. They're not idiots. They're not stupid. They know that their prices have gone up and are up to $1,000 higher. And this government has taken away the energy supplements paid to people who can least afford it. This is an outrage, an absolute blight on a government that will leave no track record other than destruction. Take that, Calare! It's a disgrace.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

The member for Lindsay will return to her seat and withdraw.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I withdraw. It's a shame you don’t do it on the other side.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

The member for Lindsay will return to her seat and withdraw or I will name her. I call on the member for Lindsay to withdraw.

Photo of Emma HusarEmma Husar (Lindsay, Australian Labor Party) Share this | | Hansard source

I withdraw.

3:59 pm

Photo of David ColemanDavid Coleman (Banks, Liberal Party) Share this | | Hansard source

The gall of the member for Port Adelaide—to come into this place and want to talk about energy when he is the person who has admitted that the Labor Party knowingly allowed gas producers to export gas without providing for gas to be provided to the domestic market in a way that would keep prices under control—is extraordinary. When David Speers asked the member for Port Adelaide whether or not Labor received warnings when in government about the impact of their gas policy, which would enable the LNG suppliers to basically export pretty much all of the gas and not provide very much at all to Australia, he said yes—'Everyone knew there was going to be an impact on prices.' And yet the member for Port Adelaide, and all of his colleagues on the other side of the chamber, let that happen. What that has required is for this government to step in and go through the process of placing controls on the export of LNG, because all of the modelling says that the biggest factor that has been driving up wholesale prices of gas and, therefore, of electricity in the last twelve months is the excessive export of LNG. The member for Port Adelaide is the one who has admitted that the Labor Party was responsible for that, and that they were warned about that and they did it anyway. So it is quite extraordinary. You would think he would be so sheepish as to not want to draw attention to this extraordinary policy failure, but, nonetheless, he has.

The Labor Party's policies in this area have one consistent theme, and that is: higher prices. Not controlling LNG exports—what does that mean? Higher prices. A 50 per cent renewable energy target by 2030, which will wreak havoc on baseload power in this country and force the mass closure of existing baseload power facilities—what does that mean? Higher prices. That's what the member for Port Adelaide and the Labor Party want—a 50 per cent renewable energy target by 2030. And they are so unashamed about this that, when they talk about coal-fired power stations, they don't talk about them closing down over time, as part of an orderly process; they say they want to 'kickstart' the closure of coal-fired power stations. What does that mean? That means a loss of jobs in those communities, like the Hunter in New South Wales, and again it means less supply and higher prices. That is the member for Port Adelaide's policy. A 45 per cent emissions reduction target by 2030? Again, that will mean less base-load power, and less base-load power means higher prices. We saw it with the Hazelwood closure. We've seen it with the excessive export of LNG. Their policy over there is to have more and more of that, which means higher and higher prices.

We've seen the practical reality—the canary in the coalmine, so to speak—in South Australia, where 1.7 million people were out of power because of the extraordinary and crazy renewable energy policies of the South Australian government. We saw prices up by 50 per cent for business customers after the closure of the Northern power station, and the member for Port Adelaide called that a 'hiccup'. Do you think that's a hiccup, Deputy Speaker Coulton? Well, if you are one of those small businesses in South Australia that are employing locals and your power price goes up by 50 per cent, that's not a hiccup—that's a disaster. All of these Labor policies mean higher prices.

In contrast, we have a clear agenda of reducing power prices: abolishing the limited merits review, so that the poles and wires companies can't game the system as they have in recent years, which has led to $6½ billion of additional costs for consumers; requiring the retailers to proactively get in touch with their customers to tell them about better deals and requiring the ACCC to follow up to ensure that the retailers actually do that, because people can save hundreds and hundreds of dollars just by working to get a better deal; and, importantly, moving to put in place export controls on gas, to fix up the mess created by the member for Port Adelaide and those opposite, which is already having a meaningful impact on reducing the wholesale price of gas that gets bid into the National Electricity Market. That is a very positive thing for reducing the pressure on household energy bills.

So, over there, you have a litany of previous failures and you have a series of new policies which will make things far, far worse. On this side of the House, you have practical steps being taken right now to reduce energy prices. Those opposite should be ashamed of their energy policies.

4:04 pm

Photo of Anne StanleyAnne Stanley (Werriwa, Australian Labor Party) Share this | | Hansard source

This government's paralysis on energy policy is astounding. While their members take to the airwaves decrying the state of our energy sector, power bills continue to rise while they do nothing because they're too busy arguing amongst themselves. Meanwhile, people in my electorate continue to face increasing power bills, which have continued to rise in the five years since this government was elected. On top of that, my most vulnerable constituents are losing access to the clean energy supplement. This means that, while power bills continue to increase, pensioners are losing the financial support to help them afford it. That double hit will put even more financial strain on the people who need it least. All the while, this government continues to focus on itself, deciding that a moment of crisis would be a great time to discuss the future of a 50-year-old coal-fired power station. If there isn't a policy supporting the plan, or any buyers interested in investing, it is impossible to think that a responsible government would keep such a plant operational. The mere fact is that the technology in these plants is so old they can't generate at optimum levels any longer without significant investment.

AGL is looking to the future, and that is exactly what this government should do. Focusing on one ageing plant does nothing to solve the immediate problems we face in solving systemic policy failures in the energy sector. If anything, even with this one issue, the government has somehow managed to make its approach to energy policy even less clear. What hope do we have of resolving this situation when they can't even agree to implement the recommendations of a review conducted with the express purpose of guaranteeing energy security and reliability? Instead of creating certainty, they've placed the energy sector inside a policy vacuum. This lack of direction and indecision has created a situation where energy companies have not invested due to uncertainty, starving the sector of vital investment. We are now entering summer with the Australian Energy Market Operator warning of deep-seated problems with our national electricity grid creating a scenario where many households will face blackouts and reliability issues. Given that the government made so much noise about how they were going to take action on power bills and create a more robust energy sector, people have the right to feel betrayed when the generation capacity available in our network now is 4,000 megawatts less than when this government took office, and nothing has been done to fix it.

It's extraordinary arrogance for those opposite to pretend they have anything to be proud of. Through their inaction and carelessness over the past four years, we have now reached a critical point and they seem content to continue to do nothing. Households in my electorate and across the country will continue to hurt under this absence of clarity of policy, particularly the continued prevarication around implementing a clean energy target, a measure that has been endorsed by key business figures and experts from the energy and finance sector as well as consumer groups.

While the government continues to avoid its job on making a decision, the market won't invest. Companies like AGL have real responsibilities to their shareholders, their board and AEMO. They have real governance requirements, and their businesses have decisions to make. Four years of policy paralysis has seen wholesale power prices double, reliability of electricity supply fall, and carbon pollution rise by 1.5 per cent in just the last quarter. Getting CEOs of power companies in for a chat about power prices and having them write to their customers to tell them about discounts that might be available on their bills is not a substitute for an energy policy As the wholesale price of power has doubled in the last four years, a small discount is not making any real difference to the lives of people in my electorate. Power bills are still more than $1,000 more than they were, and that is pretty hard to find when wages have stagnated and everything else is rising.

The evidence and the experience from around the world is clear: in order to ensure dispatchable power and reliability, we need to create policy certainty. We need to have bipartisan support. With policy certainty, businesses will invest, banks will finance and jobs will grow. Planning and market certainty will ensure that there are enough different types of generation options to provide for a reliable, safe and cheaper electricity grid. This is what the people of my electorate expect of their government. Stop pointscoring and actually govern.

4:09 pm

Photo of Julia BanksJulia Banks (Chisholm, Liberal Party) Share this | | Hansard source

The negligence and inconsistency from the Labor-Greens alliance on the issue of energy is nothing short of appalling. Not only have they sold out the blue-collar workers across Australia but they've done the same to Australians across the country with regard to high electricity prices. We're not the coal party; we're not the anti-coal party. We're not the renewables party; we're not the anti-renewables party. We are the party that is about affordable, reliable energy.

Consistent with the Labor-Greens' appalling history in relation to energy, their approach is that important things should only be looked at, in their words, 'down the track'. When South Australians experienced their blackouts, they couldn't drive in the dark, businesses shut down and hospitals had to go on generators. The whole state was in darkness. This is what Labor governments do, particularly when they're in alliance with the Greens. Not only was the cost to businesses and thousands of South Australians terrible but it affected all aspects of life.

It goes without saying who Australians should blame for these blackout bills. You see, in business—which none of those on the other side know anything about—you actually have to deliver and get things done. That's what the Turnbull government does. We get things done. In business, sometimes you also have to clean up messes from those before you. That's what the Turnbull government is doing. We're doing what we do well: we get things done in a measured, pragmatic way. The Turnbull government is getting on with the business of keeping energy prices at affordable levels for all Australians. Unlike Labor, the government knows that Australians are concerned about the rising costs of energy and living. In particular, the government is listening and taking action on this front. Our priority is energy affordability and reliability as we meet our international targets.

The Turnbull government is delivering a comprehensive plan to put downward pressure on electricity prices for households and businesses. We've taken policy actions to deliver tangible outcomes for Australians, ensuring that the lights stay on and that prices remain low for Australian households and businesses. Unlike former farcical, idealistic Labor governments, the Turnbull government's focus is on what matters to Australians. What matters to Australians is when that electricity bill comes in. What matters to Australians is that they don't have to endure those blackout bills that our fellow South Australians had to endure under a Labor government. Our focus is affordability and reliability, not ideology.

Unlike Labor, we are heeding warnings of the energy white paper and the Energy Market Operator. The Turnbull government has taken very strong action to ensure more gas in the domestic market. We've finalised tough new regulations in the gas sector to give Australian customers priority access to gas supply before it's exported. We want to ensure that retail providers are giving Australians the best deal. This will remove the ability of regulated energy network companies to game the system at the expense of consumers, which is what they were able to do under the Labor government. The Turnbull government knows that messy regulation of the energy sector under Labor has contributed to driving up prices for many Australians. Opening up competitive markets and educating Australians on how best to choose a provider delivers low-cost, more affordable energy for Australians.

We know that Australia's emissions per capita and per unit of GDP are currently at their lowest level in 27 years and that Australia has a strong track record of meeting and beating our emissions target. The Turnbull government has introduced legislation to amend the Clean Energy Finance Corporation to allow investment in carbon capture and storage, which can reduce emissions by up to 90 per cent.

We need storage to back up our renewables. That's something that the Labor government never considered. The Turnbull government has embarked on the largest storage project ever undertaken in Australia. Snowy Hydro 2.0 will add 2,000 megawatts of energy storage for 7½ days. In short, the Turnbull government is keeping Australians connected and ensuring we have backup so that Australians aren't kept in the dark.

The Turnbull government is taking pragmatic action to ensure that Australians can access affordable and reliable energy. I know our measures will have a considerable impact in Chisholm, my electorate. In Victoria we've been feeling a pinch due to rising energy prices and egregious Labor policy. As a result of the pushing out of Hazelwood, companies AGL and EnergyAustralia increased bills by up to $135 this year. They have a vested interest in doing that. We are all feeling the rise, and the Turnbull government's priority is to ensure affordability for Australian households and businesses. Our comprehensive plan to put downward pressure on electricity prices for households and businesses is making a difference for my constituents, and I'm proud to be a member of the Turnbull government. We're keeping the lights on and we're making sure Australians can afford reliable, dependable and sustainable energy.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

The debate has concluded.