House debates

Thursday, 1 June 2023

Matters of Public Importance

Energy

3:16 pm

Photo of Milton DickMilton Dick (Speaker) Share this | | Hansard source

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

Rising energy prices and this government's failure to mitigate their impact on middle Australia.

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—

3:17 pm

Photo of Ted O'BrienTed O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | | Hansard source

Have you heard the joke about the increase in power prices? I haven't, but it has not stopped the Prime Minister from laughing every single time he is asked a question from the coalition about why middle Australia is struggling with higher power prices. Have you heard the joke about middle Australian families who don't know how to pay the bills? Well, we haven't, but that has not stopped this Prime Minister laughing every single time this issue is raised in this parliament. This is not a joking matter. No matter how much the Labor Party may wish to mock, we have middle Australia right now suffering enormously. Yet we have this callous indifference displayed by the government, despite the fact they went to the election promising the Australian people that nobody would be left behind—nobody other than, of course, middle Australia.

We found out the new CPI figures from the ABS overnight. We found out that the monthly Consumer Price Index rose 6.8 per cent in the year to April 2023—that's compared to 6.3 per cent in March. We know this impact every single household across this country, and energy is a huge driver. This government promised the Australian people a reduction of $275 off their household power bills, and they have broken that promise. They have broken that promise—a promise they made over 97 occasions ahead of the election, a promise in fact they keep on their website. It's callous indifference to those in middle Australia who are doing it tough, who have seen their power bills go up by hundreds and hundreds and hundreds of dollars. We found out only a week or so ago that those power bills will go up again—25 per cent for households, 29 per cent for small businesses—and we have nothing but hubris from the government—nothing.

Only on Monday, this week, I had the pleasure of joining the Leader of the Opposition together with the wonderful member for Casey on a visit to the Yarra Valley. We went to a company called Yarra Valley Hilltop and met with Laurie, who owns this business. He gets to work every day when it's still dark and he leaves when it's dark, as he looks after his 85 employees. Laurie runs a food manufacturing business, which is a business that supports local farmers, in particular.

In speaking with Laurie, his power bills have gone up, over the last 12 months, by 50 per cent. To put this in context, for the Yarra Valley Hilltop that's an additional $200,000 every single year.

Government Members:

Government members interjecting

Photo of Ted O'BrienTed O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | | Hansard source

Those on the Labor benches might think this is very funny but, I'll tell you what, Laurie is not laughing. The 85 employees are not laughing. They don't find it funny at all, $200,000 in addition just for their energy bill. Do you know what it's going to be, most likely, this time next year? They've been advised that their energy bills may, in fact, double by this time next year. What does that mean to Laurie? What does that mean to his employees? I can assure you, Laurie does not find it funny.

Not only does Laurie's business suddenly get squeezed—because his costs are going up—but also he's competing against international players whose costs are not going up, because their energy prices aren't. So, of course, he is finding it harder in the marketplace. He makes less profit. To the extent to which those increased costs from energy have to be passed on, do you know who pays for it? It's the everyday household. It's mum and dad as they go to the local IgA, the local food store, and they buy their jam, their bread and their milk. Everything is going up, and Australians know it. Yet this government is patting itself on the back, when it comes to energy.

Only a Labor government congratulates itself for ensuring prices go sky high. Only a Labor government does that. The counterfactual argument being put by the government is that prices could have been worse if they'd kept with their first set of dumb policies in the first six months of government. But they have a new set of dumb policies, and they think these dumb policies are better than their last dumb policies.

Dumb and dumber doesn't sell to the Australian public, because they know the truth. They know the truth because every single time they open up their power bill they see Labor's promise of a $275 reduction being broken. Family budgets are breaking. There is nothing in this federal budget to help middle Australia on this stuff. Not a thing. Yet Labor will continue to come in here and laugh.

It's one thing to mock and giggle and laugh and carry on in this parliament, as the real Australians are doing it tough, but what makes it even worse is that we have the Minister for Climate Change and Energy, together with the Prime Minister, claiming that his energy policies are driving prices down. He continues to say that Labor's policies are driving prices down. We all know the truth: prices are going up. They are prepared to tell that untruth to the Australian people.

How many times, despite price rises right across the country for families and small businesses, will we have the minister responsible claiming that he is delivering the cheapest form of energy Australia's ever seen? You can't keep that deception up and think the mob won't work you out. Every single time, they know power bills are going up. We know from the default market offer and the Victorian default offer that prices are going up.

We have the minister across the table trying to argue, but prices are going up. Middle Australia is feeling it, even if you're not feeling it. Even if you don't care about it, middle Australia cares about it, because they're paying the bills.

The Minister for Climate Change and Energy is telling everybody it's the cheapest form of energy that could ever be delivered, but prices are going up. He knows the truth. We can't give him the benefit of the doubt and say that this is just unconscious incompetence. This is conscious incompetence. The Labor Party knows precisely what it is doing. It is restricting supply of gas in the market, which is only making it worse. It keeps this false promise on its website of a reduction in power bills, despite middle Australia feeling the pain.

They're not laughing. The senior citizens of this country are coming into winter, and I can assure you they're not laughing. I wonder how many older Australians happen to turn on question time, hear one of their local MPs ask a question on their behalf to the Prime Minister about energy bills, and hear the Prime Minister stand and laugh—absolute hubris, when we have middle Australia hurting right now.

Honourable members interjecting

Still we have Labor Party MPs that think it's funny. Middle Australia does not think it is funny. Middle Australia is not laughing. Middle Australia is in pain right now because of a suite of energy policies that are driving prices up. It does not matter how much callous indifference is betrayed by the Labor government. It doesn't make their lives easier. Not one measure in the budget addressed this issue. Middle Australia continues to be in an enormous amount of pain. It doesn't matter whether it's the Prime Minister, whether it's the responsible minister or whether it's the entire Labor frontbench or backbench. They somehow find humour in the misery of middle Australia, and they are defying them by doing nothing to help. (Time expired)

3:27 pm

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | | Hansard source

It's another Thursday afternoon. It's another MPI. It's deja vu all over again, another resounding Shakespearean soliloquy from the shadow minister, but yet again it's all just sound and fury signifying nothing. As I listen to the opposition in question time and listen to the opposition in these forums, it's clear that the stories of families and businesses in Australia—the middle Australians the shadow minister was talking about before—in their world view are nothing but political props. They are props in the political theatre of this building.

We know this because if they actually cared about middle Australians, about Australian families, about Australian businesses, we wouldn't just be hearing rhetoric in here. We wouldn't just be hearing the political games and theatre. We'd be seeing action to match those words.

Photo of Ted O'BrienTed O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | | Hansard source

You're the government. Take action!

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Order, member for Fairfax!

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | | Hansard source

When given an opportunity to act, to vote for reductions in energy power bills, they voted against it. Indeed, the Leader of the Opposition has confirmed recently that they would rewind—repeal—these cuts. That's their position.

Shielding Australian families and businesses from the worst of the energy price hikes being experienced in Australia and around the world at the moment is an important challenge for this parliament. We know that any increase in energy prices is difficult for families and for businesses, families and businesses that may well be listening to this debate. But we also know that Australians want their elected representatives to take real action on these challenges. Instead, all we see from those opposite is political theatre and obstructionism.

At the end of the Abbott-Turnbull-Morrison government, you had the sense that the LNP jalopy had become completely clapped out. The wheels had fallen off. The axle had ground to a halt on the ground. They had no forward momentum. Well, I will give those opposite credit for one thing: they've certainly got the show back on the road. The only problem is that the new jalopy only has one gear: reverse. It's deja vu all over again. They want to take Australians back.

Watching those opposite, it's clear that they've learnt nothing from the last 10 years. They've learnt nothing from the last election result. They've learnt nothing from the Aston by-election result. If you picked up the Notice Paper, if you watched the questions in question time from those opposite, you could easily imagine that you'd been transported back to 2010. At the moment, the Leader of the Opposition is doing a pretty good impression of Tony Abbott without the speedos. It's ugly stuff—aggressive, negative, destructive politics, wrecking instead of building, with shouting and snarling. We see it every day. In fact, that's another flashback to the 2010 period that we see in this building: the targeting of Labor women in question time and the chorus of those opposite every time a capable, confident woman on the front bench gets to speak. It's just an instinctive reaction from those opposite to get stuck in. The Leader of the Opposition might have a bit more time on his hands to practise his smiles, as he promised the Australian people, if he took the dog whistles out of his mouth and actually tried to engage.

Photo of Michelle LandryMichelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | | Hansard source

Excuse me, Deputy Speaker—relevance. This is just wrong and—

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | | Hansard source

It's not question time.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

That's not a point of order. I'm sorry, Member for Capricornia.

Photo of Michelle LandryMichelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | | Hansard source

I just want to say—

Th e DEPUTY SPEAKER: I appreciate—

Opposition members interjecting

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Well, there is a difference. Practice is very clear about matters that are politically sensitive as opposed to truly offensive. I've listened to a lot of adjectives used by the previous speaker without taking interjections and points of order either. I ask that everybody consider lifting the tone of debate in this House, absolutely, but there is nothing that has been unparliamentary. I am listening very closely.

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | | Hansard source

They've learnt nothing. Indeed, they haven't even learnt the standing orders in 10 years in this place. The Australian public is sick of this kind of destructive, negative politics. This government has a positive agenda. On this side of the House, we know that the Australian public is sick of that brand of politics. That's why we've been taking urgent action to shield Australian families and businesses from the worst of energy price spikes. We know that Russia's illegal, immoral invasion of Ukraine—

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Member for Fairfax, I've given you quite a bit of leeway. If you want to keep interjecting, you'll be asked to leave the chamber

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party, Assistant Minister for Foreign Affairs) Share this | | Hansard source

We know that Russia's illegal and immoral invasion of Ukraine has caused energy price spikes around the world. Indeed, the International Energy Agency has found that that invasion has caused 90 per cent of energy price rises seen around the world.

Of course, Australia was left even more exposed to this external shock than it needed to be thanks to a decade of chaos and neglect on energy policy under the Abbott-Turnbull-Morrison governments. Our domestic energy market has been hamstrung by ageing electricity assets and an inadequate amount of the policy certainty necessary to support investment in new energy infrastructure—a direct result of a decade of chaos and dysfunction, denial and delay from those opposite. It was a policy shambles that saw four gigawatts of dispatchable capacity leave the system and only one gigawatt coming in to replace it. It was a shambles that saw those opposite promise a billion dollars in public funding for 3,800 megawatts of new generation through the Underwriting New Generation Investments program. What did they deliver? Nothing. Well done! Nothing.

In May 2019, those opposite made a promise of their own, promising to deliver average wholesale prices of $70 per megawatt hour by the end of 2021. I can't recall which of the 18 different energy policies those opposite were pursuing when they made that promise during the wacky races of the previous government, but they didn't get within cooee of delivering it. In fact, the average wholesale price at the time of the last election was $286.18—not a 25 per cent cut but a 240 per cent increase.

Of course, this is what the former government was seeking to hide when it changed the law to cover up those impending price rises before the last election. Those opposite had a political tactic. They had a tactic for delaying the publication of these price rises. They had a tactic and a plan for themselves but no plan to the Australian public—no plan to shield Australian families and businesses from the worst of those increases, a direct result of a decade of dysfunction and delay. As always, they had a plan for themselves but not for Australians.

Our Energy Price Relief Plan has provided targeted energy bill relief for families and businesses while also investing in cleaner and cheaper energy for the future, and it is working. The recent final default market offering confirms that the Albanese government has successfully limited the worst of the energy price spikes. The DMO is set by the Australian Energy Regulator. It's the price that electricity retailers can charge customers in New South Wales, South Australia and South-East Queensland—the benchmark for all other electricity offers. The DMO has confirmed that price increases are up to $492 lower than they would have been without the government's intervention for residential customers and up to $1,310 lower than they would otherwise have been for small businesses. Indeed, for many customers eligible for the targeted energy price relief rebates, their bills won't increase at all. This includes temporarily capping the prices of coal and gas and providing $3 billion in targeted bill relief to eligible households and small businesses announced in the May budget—support directly for the most vulnerable in our society, those who need it the most.

They are the results that those opposite voted against. When you hear the Shakespearean soliloquies, the Churchillian rhetoric, understand that beneath it all lies nothing. Beneath it all lies political opportunism. They would rather a political fight than deliver action on energy prices for Australians. Consider the chutzpah of this mob opposite. First they changed the law to cover up the energy price rises before the election. Then they voted against the Albanese government's plans to shield Australian businesses and families from hundreds and even over $1,000 of power bill increases. Then they used forums like this to criticise the Albanese government for not doing enough. What have they offered the Australian public since the election? Politics. They'd rather a fight than take real action for the Australian public. They'd rather play politics than act. How else can you explain their decision to vote against action to help shield Australians from these price increases?

In fact, they have offered one other thing. In addition to politics, they've offered ideology. They've offered the most expensive and slowest to roll out form of energy to the Australian public—kooky ideology mixed in with their shameless opportunism and politics. Nuclear reactors. That's a strategy for willing winning back the teal seats, isn't it? Nuclear reactors in Brighton, Toorak and Cottesloe. It's genius. They really have their finger on the pulse.

The Albanese government knows that good energy policy needs a forward vision, taking action now while also facilitating the rollout of the cheapest form of energy: renewables. That's exactly what we are doing. We know that's what the Australian public voted for at the last election. We know that's what the Australian public voted for at the Aston by-election. Those opposite are slow learners, but we will not make the Australian public pay the price for their inability to pick up on the uptake. We're going to deliver real action. We are delivering real action as well as long-term action on climate change for the Australian public. The Albanese government is 12 months in, and we are already proud of our record. Long may it continue.

3:37 pm

Photo of Michael McCormackMichael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | | Hansard source

'The Albanese government is delivering.' Truer words were never said. They're delivering higher power prices. You only have to look at the evidence. Under the coalition, power prices reached their lowest level in eight years. Indeed, in our last term, power prices fell by eight per cent for households, 10 per cent for small business and 12 per cent for large businesses and industry. They're facts.

Now we have Labor in power, and you only have to look at the figures. Again they ring true. Look at New South Wales. Increases are going to go up by 24.9 per cent. That's $594 for households. In South Australia, it's $512. In South-East Queensland, it's $402. South-East Queensland is one of the engine rooms of our economy. In Victoria, it's a $352 increase from July. Look at the figures for small business. Small business helps to run the economy; it helps to run this country. Small business carried us through COVID, through the darkest days. Indeed, look at small business. In New South Wales, they are going to cop an $860-a-year increase on their power prices. In South Australia, it's $1,310. In South-East Queensland, it's $756. In Victoria, it's $4 less than that, at $752. If you are small-business person, how do you pay for that? Well, some of them just pass the costs onto their customers, but other businesses can't do that, so they just take home less pay and just do it tougher.

Words are important. When you go to an election promising 97 times that you're going to reduce power bills by $275, people listen. They expect that if you get into government, you are going to keep your promise. And yet Labor hasn't. They've let the Australian people down. But that's probably not all that that unexpected, because people are used to it. Let me tell you, they will remember. People have long memories. Come next election time, they're going to remember that broken pledge, that broken promise, that broken commitment by Labor. Two hundred and seventy-five dollars—that's what people expected to come off their power bills. How disappointed are they! And I'm sure that Labor members—as I have and the member for Fairfax has had—would have had constituents come into their office and say: 'Why am I paying higher power prices when you promised me that there would be a cut?' I'm sure that they're getting those, because I am, and every member would be.

Indeed, it's all about supply. Labor has torn up the trusted supply of gas, while energy generation projects are continually delayed under their policies.

As I say, words are important. When you have a treasurer who, on budget night, fails to mention the word 'infrastructure', it's inexplicable. Now, Josh Frydenberg, when he was Treasurer, had four budgets; 28 times he mentioned the word 'infrastructure'. Treasurer Morrison did 22 times in his three budgets. And yet the member for Rankin, in his big May opportunity, failed to mention the word 'infrastructure' once—not once. Do you know how long it's been since a treasurer, in the main budget for the year, failed to mention the word 'infrastructure'? Twenty-five years—a quarter of a century. I had the Parliamentary Library look it up. I did a little bit of research myself. Twenty-five years!

Infrastructure is important; so is keeping promises; so is reducing power prices. And I'm not just saying it for saying it's sake; I'm saying it because the people outside of this building are saying it. Moreover, they are expecting it. They are expecting power price cuts. But what they're copping—particularly those middle Australians who run small businesses and who run household budgets—is: they were expecting their power prices to come down, but, unfortunately, under the Labor, Greens and Teals government, they are going up. That is as true as I stand here right now. And those small business operators are the ones who take the risks; those households are the ones doing it tough.

The Treasurer can't bring himself to say 'infrastructure'. The Prime Minister can't bring himself to keep promises that he made prior to the election. And middle Australia is suffering as a result.

3:42 pm

Photo of Josh BurnsJosh Burns (Macnamara, Australian Labor Party) Share this | | Hansard source

I do thank the member for Riverina for that impassioned speech. You've got to hand it to the good folks at the Parliamentary Library. They get some pretty wacky requests, I'm sure, throughout the year, but that one I'm sure would have really entertained them.

This MPI proposed by the member for Fairfax is a pretty straightforward one. You've got to give credit to the member for Fairfax. He is like Blinky, the three-eyed fish who swims near the nuclear reactor; he just keeps on swimming, little Blinky, the little three-eyed fish—swimming away, doing his thing. He keeps on chugging. And you've got to give him credit.

One thing that the member for Fairfax isn't telling us is that his big answer, his big alternative for energy policy in this country, is obviously nuclear energy—the most expensive form of energy. And one of the things that the member for Fairfax didn't actually mention in his contribution at the start of this MPI is: Whereabouts are these nuclear reactors going to go? Where are they going to go—whereabouts in Fairfax? Right on Coolum Beach? Move over Clive Palmer's dinosaurs! Move them over! Let's build Ted's reactor. Let's build the member for Fairfax's reactor right there—or you've got Maroochydore: some of the most pristine surf in the country; a beautiful part of the world. But sorry, folks, down in Maroochydore. The member for Fairfax has got big plans for you; there's going to be a new nuclear reactor down in Maroochydore!

But there are members on the other side that don't actually share the same enthusiasm or the member for Fairfax's real affinity for nuclear energy. There are some that are much quieter. There were members in the previous parliament, like the member for Higgins, or the previous member for Higgins—we have a much, much better member for Higgins these days!—who was a big fan of nuclear energy as well. She used to come into this place and support nuclear energy. Down in my neck of the woods, in Melbourne, we have the beautiful Yarra River, with lots of things happening on the side—but, sorry, folks, we're going to have the reactor by the Yarra, according to the previous member for Higgins. It didn't work out too well, so I'm not surprised that the member for Flinders hasn't come in here and said: 'The Portsea pub? No longer. Sorry, we're going to put a nuclear reactor in Portsea.' The member for Flinders hasn't said sorry, folks. All of those who like the Portsea Polo, put your Ralph Lauren shirt on, put your little hat on—

Government Members:

Government members interjecting

Photo of Josh BurnsJosh Burns (Macnamara, Australian Labor Party) Share this | | Hansard source

The Yarra Valley? I can see the member for Casey. Sorry, winemakers and folks in the Yarra Valley. The member for Casey wants to put in a nuclear reactor. He wants a new nuclear reactor right there in the Yarra Valley. Violi's reactor—the member for Casey's reactor. It's going to be fantastic!

The member for Menzies also never comes into this place saying he wants a nuclear reactor. You can imagine down in Shoppo, the Westfield Doncaster Shopping Centre—a fantastic place. If you haven't been to Shoppo, you should go down there. There are great deals, great food courts and all of the options. I spent a bit of time in Shoppo back in the day. I did haunt around Doncaster back in the day a little bit. Sorry, folks at Shoppo, we are closing Shoppo down because the member for Fairfax is going to put another nuclear reactor right where Shoppo was.

It's all a bit ridiculous. The member for Fairfax comes into this place and pretends that he's got all the answers, except the only answer that he's got is to make Australian power prices go through the roof. The only thing that the member for Fairfax isn't telling people is whereabouts these nuclear reactors are going to go. But we obviously have a different approach. We brought the parliament back in December and asked every member of this House to say that we want to cap coal and gas prices to ensure that Australian businesses and Australian households are shielded from the worst of the power price rises. Every member of this place had an opportunity to stand with those businesses, those manufacturers and those households to say: 'You know what? It's not a good situation that you're in, but we are going to do our bit as representatives in this place.' Every member on this side of the House came in here and did their duty on behalf of those households and on behalf of those manufacturers. Every member of the opposition voted to keep prices going up because that's their MO. They want prices to go through the roof. You've got to hand it to Blinky, the member for Fairfax: he keeps swimming. But we've got a better option to keep power prices low.

Photo of Terry YoungTerry Young (Longman, Liberal National Party) Share this | | Hansard source

On that personal reflection, I'd like the member to withdraw that last comment where he called the member 'Blinky'.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

I wouldn't repeat the offence when I was making the point, but I will ask the member for Macnamara to withdraw the comment.

Photo of Josh BurnsJosh Burns (Macnamara, Australian Labor Party) Share this | | Hansard source

I thank the member for Longman. I withdraw.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

I remind everybody that it is not just one person that has made similar remarks in these debates. Member for Casey, try and lift the tone.

3:47 pm

Photo of Aaron VioliAaron Violi (Casey, Liberal Party) Share this | | Hansard source

I will try and lift the tone, Deputy Speaker Claydon. Hopefully the member for Macnamara can stay for a few minutes, because I want to give him a quick education. I can assure all the good residents of Casey that small modular reactors will not be going into our electorate. One of the benefits of them is that they go where existing infrastructure is. It's actually one of the ways you can reduce the price. Small modular reactors are amazing technology that go into existing sites, which creates jobs and opportunities for those in those communities while reducing prices. I thank the member for Macnamara for the concern, but I can assure all residents in Casey that there will not be any nuclear reactors going into the Yarra Valley.

Photo of Sam RaeSam Rae (Hawke, Australian Labor Party) Share this | | Hansard source

They'll be so relieved!

Photo of Aaron VioliAaron Violi (Casey, Liberal Party) Share this | | Hansard source

Thank you, member for Hawke. I'd just like to get the facts right. If the member for Macnamara is going to spend four minutes talking about nuclear technology, it would be nice if he did a little bit of research and understood the technology. When we talk about this change, of getting to net zero while keeping prices down, affordability and reliability in the market, we should be able to have a mature conversation about all technology.

I note that the member for Macnamara spent just over four minutes of his five minutes talking about the opposition. That really says a lot about the government. You would have heard it from the minister, and the next ones that speak will no doubt spend a lot of time talking about our side at the moment. The reason they do that is that they don't have any answers to the problems in energy that Australians are facing. Australians at home and in businesses know their prices are going up every day. They feel it every time they get a bill. They know this government doesn't have any answers. And it's even worse than that for the Australian people. This government is playing politics with energy prices. They rushed us all back here in December because, as you'll remember Paul Erickson said, they had to look like they were addressing the cost of living. So they rushed us back for this legislation that is continuing to drive prices up. What they also did was announce the rebates with fanfare. In December, they announced the rebates that they were going to provide to you at home to make your life easier.

The political reality is they could have delivered that cost-of-living relief to you at home, the Australian people, in February when we came back. They have the numbers in the House. They have a very enjoyable Senate. It would have passed. They could have delivered that relief to Australians in February, and yet no Australian, as we stand here today, has received that cost-of-living relief. When you are struggling to put food on the table and you are making decisions between whether you can drive your kids to the sporting club or whether you have to make them miss training because you can't afford the petrol price, every day, every week and every month makes a difference.

Let's be really clear to the Australian people on why that cost-of-living relief was not delivered in February. The reason is politics. It was so the Treasurer of this country could stand at the dispatch box in May for this budget and make it to the centrepiece of his announcement. It was so he could tell everyone at home how lucky they were that they were getting $400 or $500 back from this government and how lucky and grateful they should be. It's politics. Struggling families at home have been waiting six months. This Treasurer, who has spent decades working in this House, has never put his life on the line to start a small business. He's had the comfort of a taxpayer salary for almost two decades. He played politics with cost-of-living pressures so he could make an announcement. Minister after minister and backbenchers on the government side can stand up and crow about saving $400 for small businesses while a business like Laurie, a man who risked it all to start a business, is having a $200,000-a-year increase and he is supposed to be happy about a $400 reduction that he hasn't received yet because this Treasurer and this Prime Minister are playing politics with the Australian people.

That's why we are hearing those on the government side talk about the opposition while they laugh and make jokes about the cost-of-living pressures. It's because they don't understand that if you cannot bring energy prices down it drives up inflation. It drives up interest rates. It puts Australians under so much strain. This government does not have answers for the Australian people, and the Australian people know it. When they look at their bank balance and they get their energy bills, they know this is hubris. They know there is no answer from this government for the cost-of-living pressures they are living under.

3:52 pm

Photo of Fiona PhillipsFiona Phillips (Gilmore, Australian Labor Party) Share this | | Hansard source

I am very pleased to have the opportunity to speak today about what the Albanese government is doing to help provide energy price relief. As the member for Gilmore, I am already receiving thanks when I speak to families and small businesses on the New South Wales South Coast, because people know that we are doing everything possible and being responsible. Our energy price relief plan is helping. They know that the Albanese Labor government has their best interests at heart. But power prices are a major concern for many people, particularly those on low incomes or running small businesses. If we want evidence that our energy price relief plan is working, we can look no further than the default market offer, which confirms that the Albanese Labor government has limited the worst of the energy price hikes.

In New South Wales, where I live, due to the government's electricity price intervention in December last year the default market offer increase is up to 19 percentage points lower. These are the Australian Energy Regulator's numbers, too. You can't argue with that. It's 19 percentage points lower. That's a fair whack. But it's not just that. In the May budget you will have seen that we have provided targeted relief for power bills. All holders of the Commonwealth Seniors Health Card, as well as many other concession card holders, will be eligible for energy bill relief and will receive up to $500 per household. And $500 per year off an electricity bill will most certainly help mitigate the costs for many Australian families. That's the Albanese Labor government, though. We are working to provide real relief for people's power bills right when they need it.

It's not just the energy price relief plan and our targeted relief strategies, it's other initiatives, pro-active initiatives. We don't just want to shield people; we want to protect them in the future, which is why we're making record investments in renewable energy, because it remains the case that renewable energy is cheaper energy.

An example of this in my Gilmore electorate is a community battery we are providing at Maloneys Beach. After the devastating bushfires on the South Coast in 2019-20, the Maloneys Beach Residents Association did some research, and they found it would be cheaper and help with natural disaster resilience to have a community battery in their village. Now, just this month, I was able to announce the approval for the business case for the community battery for Maloneys Beach. Actions like this help mitigate the impact of rising energy prices for locals. Investing in renewable energy, providing community batteries—these are big wins for people on the South Coast. And even though it's impressive, that's just our energy policy.

If you want to talk about what the Albanese government is doing to help mitigate the impact of higher prices on people, well then, let's do it. One of the biggest pressures on people's hip pocket on the New South Wales South Coast is health care and, for that matter, the increase in difficulty accessing GPs and health services. I am hearing everyday how thrilled people are that, from 1 September, eligible people will be able to receive two months' worth of medicine on a single script. That's double the medicine for the same money. That's a big win. It will half visits to local GPs, freeing up appointments for those that need them the most. We are delivering Medicare Urgent Care Clinics, including one at Batemans Bay. We're also funding a Head to Health clinic in Moruya, with free mental health care for adults, but it is not just adults—we're well on the way to opening a headspace in Kiama. So that's free mental health care for adults and adolescents.

Health isn't the only winner for locals. We're providing 480,000 fee-free TAFE places in industry skills shortage areas, many of which are in my electorate. I visited Nowra TAFE a few weeks ago, and someone training to be a chef told me point-blank she would not be retraining if her TAFE place wasn't free. These TAFE places are in areas that communities need the most, like construction and commercial cookery.

We're also making childcare cheaper, in 30 days from today, benefiting around 4,800 families in Gilmore. We're getting on with the job, providing energy price relief and easing the cost of living, just like we were elected to do.

3:57 pm

Photo of Keith PittKeith Pitt (Hinkler, National Party) Share this | | Hansard source

When the Eagles are silent, the turkeys will soar. There is no doubt about that whatsoever. But, I would say to those opposite in their commentary about nuclear reactors in this country, they should be far more cautious. The AUKUS arrangement is an incredibly important national security agreement, and every single nuclear submarine that this country will build will go to Brisbane and Sydney and Melbourne and Adelaide and Perth and Darwin, and anything that reflects on those outcomes with our partners, the United States and Britain, is actually important. It is incredibly important. So, I would say to those opposite: be very cautious with your public commentary about what is absolutely the most important initiative for this country in terms of our national security in an arrangement that has not been offered to anyone else since the 1950s.

To come to the issues on the MPI, if we look at what's actually happening out in the real world, we have a significant coal fired power station at Callide and Biloela in the member for Flynn's electorate. It had a significant incident more than a year ago. It took out two of the generators, C3 and C4. That is, more than 10 per cent of Queensland's coal-fired capacity. That shorts the market. It's that easy. Yet, the Queensland Labor government, who owns more than 70 per cent of the generation in Queensland and all of the transmission and the only domestic retailer north of Gympie, has not fixed it. In fact, there are reports today that it won't be fixed for at least another year. Experts are saying outright that there will be massive increases in power prices and, in fact, in a story from Matt Killoran in today's Courier-Mail, 'sky-high power prices' are expected and Queensland is to face rolling 'blackouts' most likely next summer. Yet we see continued profiteering from the Queensland Labor government, because they own these assets. They take over a billion dollars worth of profit every single year from government owned corporations, and what else do they get? They get subsidies from the now federal Albanese government.

The Prime Minister made an arrangement—we hear from those opposite constantly about the fact that we did not vote for it—which creates subsidies in the billions for coal and gas companies, deals with the states, yet profiteering from the Queensland Labor government is driving up prices. Once again, back in the real world, the Australian Bureau of Statistics have indicated that in the March quarter alone in Brisbane power prices went up more than 30 per cent in just one quarter. Now we see the default market offer as roughly an increase of another 25 per cent across the board for residential and as much as almost 30 for small business yet we see the Minister for Climate Change and Energy, the Prime Minister, the Treasurer and every other minister come to the dispatch box to try to tell the Australian people that a 25 per cent increase is a decrease, that in fact it could have been much, much worse. It could have been so much worse. They cannot pay their bills now.

There is no $275 reduction; there are only increases. There is only pain for people that can't pay, and, if you are in Queensland, the profits are going to the Queensland Labor government. The quickest way to get a reduction in power prices in Queensland is for the state Labor government to stop making so much money. That is the absolute outcome of these changes. They are profiteering. The market is shorted because they have not fixed Callide power station. The information I get is the member for Flynn has written to the state minister twice for a briefing about what is an incredibly important piece of infrastructure. In fact, these power stations, would you believe, provide electricity to places like coalmines—things that actually contribute to the Australian economy. Our biggest export commodity this financial year that has provided a significant input to the bottom line for this federal Labor government and its budget and, for one of the first times ever, a budget in the black for Queensland because they had a massive increase in royalties of almost 40 per cent across the board on call. What have they done with it? They are not reinvesting it in regional Queensland. They are not reinvesting in Queensland hospitals and services. They are not providing relief. They are not providing help for people who cannot pay—

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

Member for Longman, you are leaving the chamber.

The member for Longman then lef t the chamber—

4:01 pm

Photo of Ted O'BrienTed O'Brien (Fairfax, Liberal Party, Shadow Minister for Climate Change and Energy) Share this | | Hansard source

yet we continue to see from those opposite rhetoric that says the 20 per cent increase is a decrease, that somehow we are in an upside down world, in another reality where increases are decreases, decreases are actually happening with an increase, and people are paying far more than they can afford but that is a good thing and they come to the dispatch box and they find it funny. No Australian finds it funny. They can't pay their bills.

4:02 pm

Photo of Alison ByrnesAlison Byrnes (Cunningham, Australian Labor Party) Share this | | Hansard source

There seems to be a strange power that keeps drawing me to speak on the member of the Fairfax's matters of public importance. Since the last election, he has proposed four matters of public importance before this chamber, and I've been lucky enough to speak on the last three. All of the MPIs proposed by the member for Fairfax have been on energy prices. I know how important this issue is to my electorate, as is providing relief to those who need it most. But it is a real pity he did nothing about energy prices for the past decade when he was in government. I'm beginning to think we could have an untapped source of renewable energy in this country: the bluster of those opposite. But I do hope one day I might be able to speak on and MPI proposed by the member for Fairfax that might actually relate to climate change and the important side of his shadow portfolio responsibilities—a shocking idea, I know. But on the question of the Albanese Labor government supporting Australians with cost-of-living pressures, it might be time for Ted—sorry, the member for Fairfax—to read the Treasurer's budget address or, if he wants more details, budget paper No. 2.

Labor's budget outlines a comprehensive plan that provides cost-of-living relief for those that need it most while investing in key drivers of sustainable growth and sustainably funding the services that Australians rely on. This budget is providing energy bill relief to over five million households and one million small businesses, as well as helping 170,000 households save on energy bills by financing energy-saving home upgrades, reducing out-of-pocket health costs by tripling bulk-billing incentives and investing in more bulk-billing urgent-care clinics, cutting the cost of medicine by up to half for at least six million Australians, supporting 57,000 single parents by expanding eligibility for parenting payment single, responsibly increasing the base rate for JobSeeker and other payments for 1.1 million people, increasing Commonwealth rent assistance for 1.1 million households, implementing tax beaks to ensure more investment in build-to-rent projects, delivering a 15 per cent pay rise on award wages for aged-care workers and getting wages moving again.

The new Energy Price Relief Plan will provide relief for more than 1.6 million eligible households with a $500 energy rebate, and a $650 rebate for 300,000 eligible small businesses in New South Wales—including some of the most vulnerable in our community. In addition to the energy price relief rebates, Labor is investing in cleaner, cheaper energy over the medium and longer term—something those opposite failed to do during their decade in government. The previous government attacked and blocked renewable energy for nearly a decade, including by refusing to invest in transmission even to connect the Snowy 2.0 project to the grid, and now we're paying the price. Our Labor budget delivers more than $1.6 billion for energy-saving upgrades for homes, businesses and social housing, which is made up of $1.3 billion to establish the Household Energy Upgrades Fund, $300 million to support upgrades to social housing and $310 million in tax relief to be delivered via the Small Business Energy Incentive.

Locally, in the Illawarra, this Labor government is investing and delivering when it comes to energy price relief. Last week, I was happy to announce, with Minister Chris Bowen and the member for Whitlam, that Warrawong and Dapto will receive community batteries, helping lower household electricity bills, reducing emissions and delivering reliable renewable energy for local residents—some of the most vulnerable in my electorate. Endeavour Energy will receive $1 million in grant funding to install a 720 kilowatt hour battery in Warrawong and a 1,040 kilowatt hour battery in Dapto as part of the government's community batteries program. This is another example of the Albanese Labor government delivering for our Illawarra region as we invest $200 million to install 400 community batteries across the country.

We are getting on with the job of delivering a comprehensive plan for cleaner cheaper energy, in clear contrast to the mess left by those opposite and a decade of inaction.

4:07 pm

Photo of Jenny WareJenny Ware (Hughes, Liberal Party) Share this | | Hansard source

I rise to speak in favour of this matter of public importance that's been brought by my friend and colleague, and our shadow energy minister, the member for Fairfax. Labor promised Australians before it went to the last election that energy bills would be reduced by $275. I have sat here and heard speeches today, and I'm going to start, first of all, with the member for Gellibrand saying it is all the fault of Russia having invaded the Ukraine. Russia invaded the Ukraine before the last federal election, and even after the Russian invasion of Ukraine then opposition leader Albanese continued to promise, on 97 separate occasions, that energy bills would reduce by $275. That is just one of this government's neglected promises.

The member for Macnamara spent four minutes today on this MPI discussing nuclear energy and ridiculing us. I will again invite the member for Macnamara to come out to the only nuclear reactor in this country; it's in my electorate of Hughes. He'll be welcome to come out and see what is being done out there—as would all of you across the floor. Come out and have a look at it. It's not scary. Speak to nuclear scientists and see what can be done.

The member for Gilmore spoke about having received letters of thanks for reducing the cost of living within her electorate. I've also received a letter—from Colin, of Loftus in my electorate. Colin's letter says: 'I have just received a letter from my energy company saying that my power bill is going up from the next quarter.' There are various rates quoted for different usage charges. For example, the peak usage on Colin's plan goes up by about 9.7 per cent over just one quarter. The letter cites three reasons for the increases: the rising cost of wholesale electricity, government green schemes and market charges, whatever they might be. The letter also states that the new rates are 13 per cent above the default market price. Colin has called it the 'DMO'. He says: 'I understand that the DMO is set by federal government. How can my energy provider charge more than the DMO, I wondered.' Colin then went and rang his energy provider and was told that he was on the best available plan, and he asks me how his energy provider is able to charge more than the DMO.

I have sent that correspondence through to Minister Bowen, the Minister for Climate Change and Energy. I'm yet to receive a response, but I can say to Colin that one of the reasons that his energy bills are so high and continue to increase is a lack of supply. We have been saying this to those on the other side since May of last year. In particular, I'll draw attention to two of the major problems within my home state of New South Wales. Firstly, there is the delay to Snowy 2.0. Secondly, the Liddell Power Station, which represented 10 per cent of the New South Wales energy grid, has been permanently powered down. They are two of the problems for Colin and two of the problems for people not only in my electorate but in my home state of New South Wales and throughout the entire country.

We are hearing from those on the other side saying prices are coming down and that they are receiving all of these letters of gratitude from their electorates. I'd like to see some of those letters to the member for Gilmore, because I can assure you that, in my electorate, I am receiving letters every single day in the same vein as the one I've just quoted from Colin of Loftus. It cannot be the case that it is only those in Gilmore that are receiving these massive decreases in their cost of living when the rest of the country has been suffering, largely, under this Labor government. For example, households in my state of New South Wales are facing increases of up to 24.9 per cent—which is 25 per cent—and small business is facing increases of 21.6 per cent. To transfer that into dollar terms, that's $594 per quarter for every householder in New South Wales.

4:12 pm

Photo of Tania LawrenceTania Lawrence (Hasluck, Australian Labor Party) Share this | | Hansard source

Here we have an MPI from the opposition on energy prices. They are absolutely devoid of any self-awareness. This is from a bunch that couldn't land any sort of energy policy for nine years. This is from a group that couldn't even agree amongst themselves that they need to accept the science on climate change. This is from a group that lurched from one scare campaign to the next, pitting Australian against Australian in a disgusting, cynical ploy to claw back any semblance of political relevance.

In December, this government took decisive action on energy prices. Demonstrating clear leadership, we put a cap on wholesale gas prices. We could see that the supply shock caused by the war in Ukraine was impacting prices, and we took firm action to protect Australian consumers. How seriously did the government take the threat to the livelihoods of Australian people and businesses? I will tell you. The Prime Minister recalled the parliament to pass legislation. That's how seriously we took it. I had to fly back from Hasluck, which is some 3,000 kilometres away, and I was happy to do so because it was the right thing to do. And how seriously did members opposite take that threat to energy prices? They voted against the cap. The member for Fairfax needs to explain this to his constituents. Where would energy prices be now if the coalition were in power? They'd be much higher. And where would inflation be? The general consensus is that the cap will have had an anti-inflationary effect of up to three-quarters of a per cent, so where would inflation be if we had had a Dutton government? It would be higher. But that's not all; there is more.

In the May budget, the Treasurer outlined the energy price relief bill, with targeted relief for five million individuals and families most in need and for one million small businesses—true cost-of-living measures, with real reductions in energy bills.

But, at the end of the day, what this MPI really asks is this: what would a really good coalition energy policy look like? I'll tell you what it would look like. It would look like ours, properly identifying and addressing the current situation and then planning ahead for a green energy future. Not sure what I mean by that? Here are some examples.

It means investments in solar energy, like $65 million in a groundbreaking solar thermal project; investments in wind energy, the six regions earmarked for offshore wind farms and project progressing; investments in battery storage, like the 400 community batteries being delivered all over the country, including in Stratton in my electorate of Hasluck; investments in exploration and the processing of critical minerals, and we're partnering with the US on the supply chains; investments in hydrogen, like the $2 billion Hydrogen Headstart program; investments in transmission—we're rewiring the nation; investments in electric vehicles, like the EV-charging network, to give motorists the confidence to switch over; and investments in innovation, encouraging the development of tomorrow's technology today through the $10 billion National Reconstruction Fund. It means investments in electrification and efficiency, like the $1.3 billion to establish the Household Energy Upgrades Fund, the $310 million in tax relief for the Small Business Energy Incentive, the Renewable Energy Target and so much more—so many initiatives, so little time. If members opposite would like, I'm happy to send them a link.

All of these forward-looking policies will contribute not just to cheaper energy for all Australians but to the meeting of our emissions targets and a cleaner, more circular economy. At the same time, it insulates us from the global shocks, such as the one we are currently experiencing.

In conclusion, the reason the coalition keep returning to their own mess in this area of policy is that they know that the cost of living is an issue and they hope that the Australian people will blame the government for the coalition's own failures and not look too hard at their actions in this place over the last year and the nine hopeless years prior to that—because, if the average Aussie punter had a good, hard look at the coalition, what would they find? They'd find a motley collection of climate deniers mixed in with too few others, who can't steer their party's debate. They'd find a coalition that opposed the cap on gas prices; that would have created even higher inflation if they'd held the reins. They'd find a dearth of policy and an office devoted to photocopying old MPIs.

Due to the Albanese government's timely courage and the measures in the budget, Australian consumers are in the best position they could be in in the current international environment. This is a government that walks the walk.

Photo of Sharon ClaydonSharon Claydon (Newcastle, Australian Labor Party) Share this | | Hansard source

The discussion has now concluded.