Nick Xenophon (SA, Independent) Share this | Hansard source

I indicate that, with reluctance, I support Senator Fielding’s amendment. I say that because I take on board the arguments of Senator Milne that there needs to be certainty for the renewable energy sector. But I do see there is a point in what Senator Boswell is saying in the sense that if we decouple the RET legislation from the CPRS, which appears to be likely, then that poses some policy challenges. I agree with Senator Milne that the way of the future is with jobs in the renewable energy sector. In the absence of knowing what will occur in terms of the links between the RET and the CPRS, we need to look at this closely.

Until now the two schemes have been interlinked and Senator Milne is right to say that they can be decoupled. I think it is mischievous of the government to say that they cannot be, but there are policy challenges and consequences flowing from that which will need to be the subject of an inquiry to see how that can be done. I think that the policy objective here is: how can we further expand our renewable energy sector? Is this target ambitious enough? How can we have triggers there for the renewable energy sector to expand even further?

There is no doubt in my mind that Australia’s future is to go from a high-carbon to a low-carbon economy and that can only be done in part with a strong renewable energy target and having the mechanisms in place for the structural adjustment that is necessary. I think we need this time, some seven weeks, in order to do this. I am reluctant to support it, but I think there is no choice given that it is likely that the CPRS legislation in its current form will not pass or will be substantially amended. Certainly, it will not go through in its current form, given what the coalition, Senator Fielding, the Greens and I have said. Therefore, we need a stand-alone RET scheme that will do the job to transform Australia from a high-carbon to a low-carbon economy. I want to make it clear right now that the RET legislation must be dealt with soon after the committee reports on 12 August, if that is the will of the Senate, and then we need to get on with it. We need to deal with the policy challenges arising out of a decoupling of the two. That is my position and I hope that we get the answers that we need as a result of a Senate inquiry into the RET scheme.