Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Hansard source

On behalf of the opposition, I indicate our support for these amendments moved by the government. We recognise that this is an important mechanism being introduced in an attempt to provide some certainty of price, particularly in the early years of the operation of the LRET. We have had numerous representations made to us about some of the issues around banked certificates and how they will be discharged into the market. As a result, we think that it is sensible to find a mechanism to ensure that they are discharged in a tidy manner that ensures some degree of certainty for price. In relation to my own state, I have had representations from companies such as LMS Generation, a landfill gas power generator, who highlighted small future projects that might be delayed or put off in future years should something not be done to ensure that there is not a large flow of banked credits onto the market next year, therefore holding down the LRET price in the early years of the scheme. I understand the manner in which this is being presented ensures that any costs borne by electricity users in the early years will be offset in the latter years of the scheme.