Simon Birmingham (SA, Liberal Party) Share this | Hansard source

Let me be absolutely clear at the outset that no Australian industry has been more stuffed around by the Rudd government than the solar industry has been. No Australian industry has been more screwed over by the Rudd government than the solar industry. The solar industry has had strike after strike after strike from the Rudd government. Indeed, if it were a ‘three strikes and they’re out’ type of policy, they would have been out long ago because, from what I can see from the treatment of the solar industry by this government in its fairly short time in office, there have been no fewer than six strikes on the industry—at least. First of all, we had the means testing. That came along, unannounced, in last year’s budget. Lo and behold, buried in the budget papers was the means testing of the solar rebate under the Solar Homes and Communities Plan. What happened from there was that it shut out of the marketplace everybody who could afford to buy larger-sized solar power systems.

As all households with a taxable income over $100,000 were shut out of that program, the average size of solar units installed in Australian homes went down, down, down under the government. So, instead of getting the maximum bang for the taxpayers’ buck when it came to installing solar systems in households, taxpayers were instead subsidising the smallest possible systems. A plethora of one-kilowatt systems were being installed as a result of the government’s decision to means test. It did not do what they hoped it would do and slow demand and fix the budgetary problems that they had in terms of how much was allocated. Instead, demand kept surging but they kept getting less bang for their buck—strike 1 on the solar industry.

Then, because that plan did not work, the government decided that instead it would axe the solar communities program altogether and replace it with a new system based on the new renewable energy certificates system. The problems with the REC system were that people would get less of an incentive to install a solar system, it was harder to understand and it is almost impossible to quote for because, as it is a market, nobody knows what the price of a REC will be at the particular point in time it is issued, so the solar industry find themselves having to quote to the marketplace not knowing exactly what type of subsidy will be on offer—strike 2 against the solar industry.

Then, lo and behold, the government brings forward the axing of the solar rebates under Solar Homes and Communities. That is despite Minister Garrett giving assurances to the industry and consumers on ABC’s PM program on 17 December last year that it would be phased out after 1 July. That is despite the COAG community on 30 April this year telling the industry and consumers that the new program was intended to commence on 1 July. That is despite even this year’s budget papers stating that the funding for solar rebates will continue until the program has transitioned to Solar Credits on 1 July 2009. This is another broken promise, another strike—strike 3 and counting—against the solar industry.

Of course, the solar rebates were axed early, ahead of 1 July, without any replacement. Minister Garrett, Minister Wong and the government said, ‘We’re introducing a new renewable energy target that will encompass the new Solar Credits program.’ Guess what: they did not even have the legislation finalised when they announced the axing of the current program. No legislation was finalised, there was no legislation in the parliament, there were weeks to go until their ‘planned’ conclusion of the program and they axed it early, with nothing to replace it—strike 4 and counting against the solar industry.

This all happened only a couple of weeks ago. The industry were still reeling from the last strike against them when the government came along and decided to axe early the Renewable Remote Power Generation Program, which was critical to regional Australia in terms of allowing regional areas to wean themselves off diesel powered generators and actually have renewable energy alternatives in their communities. This program was axed by email on Monday of this week at 8.33 am. That is how the industry found out. There was no warning, no planning, nothing—they just got an email at 8.33 on Monday morning. That is how the industry found out, so little wonder the industry are reeling from the latest blow to them—strike 5 and counting.

The Clean Energy Council has indicated that the impact on the industry will be serious and has highlighted that the government cut this program last year by $42 million—strike 6 and counting, in terms of blows against the solar industry.

Senator Milne in her contribution to this debate highlighted the government’s stance when it came to feed-in tariffs. Back on 30 October 2007, in a policy document, Minister Garrett stated:

… Labor believes it is important that there is a consolidated and consistent approach across jurisdictions to renewable energy policy. A Rudd Labor Government will work through the Council of Australian Governments to develop a consistent national approach to feed in tariffs.

Guess what: strike 7 and counting. There is no national approach—they have backed away from that policy—and Minister Garrett now says it is up to the states. There have been too many strikes too many times against the solar industry. (Time expired)