Jan McLucas (Queensland, Australian Labor Party, Shadow Minister for Aged Care, Disabilities and Carers) Share this | Hansard source

On behalf of the Labor Party, regarding both the Greens amendment before the chamber and the forthcoming Democrats amendment, I indicate that, whilst Labor is extremely supportive of the principle of increasing the MRET, we cannot support proposals defined as specifically as they are in the amendments today. We do recognise that, when MRET was first announced, it was the government’s stated intention that it would increase market share of renewable energy as a percentage by two per cent. The government said in its review of the operation of the Renewable Energy (Electricity) Act 2000:

Electricity retailers and other large electricity buyers will be legally required to source an additional 2 percent of their electricity from renewable or specified waste-product energy sources by 2010.

However, we know that in its design MRET has become a gigawatt hour target rather than a percentage of market share. By making the target a gigawatt hour target rather than a percentage, the target has in fact become a dead target. The result is that market share of renewable energy in 2010 will be approximately 10.5 per cent, exactly the same as it was in 1997. Labor support significantly increasing the MRET target, and we will be announcing our detailed policy on that matter closer to the next election.

This is an area of policy that requires close consultation with industry, careful thought as to how best to support renewable energy and creative thought as to how MRET can be complemented with other supportive measures. Labor supports significantly increasing the MRET, but to do it through either the Greens amendment or the Democrats amendment is not appropriate at this time.