Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

and Minister Carr, who represents him, but is unfortunately unavailable at the moment. So I have undertaken to provide the response on behalf of the government. (Quorum formed) Senator Brown, I apologise—not in the sense that we are required to provide the relevant minister in a disallowance; but we would normally try to provide for that courtesy—but Senator Carr was unfortunately in an appointment that he could not break at the time of this debate coming on.

The Energy Efficiency Opportunities program helps Australia’s largest energy users identify efficiency gains. The program has initially—up until June 30 2009—been targeted at energy end-users rather than generators and network businesses. At that time generators were being assisted to achieve similar outcomes under the Generator Efficiency Standards program. Network businesses, being subject to price regulation, have other incentives to deliver efficiency gains.

The government in March 2009 indicated its preferred position: to extend this exemption to 30 June 2013. The initial exemption applied until 30 June 2009, as it was thought that there would be greater clarity regarding the implementation of an emissions trading scheme by mid-2009. In developing a preferred public position beyond the current 30 June 2009 exemption a proper process, which included nationally advertised extensive consultation, was followed. Public consultation occurred in November 2008. This included public forums, and 19 written submissions were also received. A second round of consultation occurred and eight stakeholders participated. All submissions that were received recommended continuing the exemption, with stakeholders advocating making the exemption permanent. However, the government believes it would be premature to either remove the exemption or to make the exemption permanent. Extending the exemption to 2013 will allow the CPRS to begin, which will then allow an assessment of the role the CPRS is playing in encouraging energy efficiency improvements in the energy supply sector. The exemption extension will also allow the WEO to be reviewed in 2012 and the future role of the WEO to be clarified.

The decision to continue the exemption does not reflect any reduction in the importance the government places on energy efficiency as a means to reduce carbon emissions. The government undertook a proper consultation process and recognises that, with the introduction of a CPRS in coming years and the review of the WEO program in 2012, it is sensible at this stage to extend the existing exemption without committing to a permanent exemption. Given the capital-intensive nature of generation and network businesses, there are not the same energy efficiency opportunities within the payback period of up to four years as there are for other end users of energy. This position has been reached following appropriate and transparent consultation. Obviously, if other parties are unhappy with the outcome, they should have participated more fully in the consultation process. The government has consulted and has taken this decision in the light of what has occurred in relation to the CPRS and, as I say, the review of the WEO program, which will occur in 2012. For those reasons, the government will not be supporting the disallowance motion.