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

The opposition welcomes the withdrawal of amendment (3) and thanks the chamber and particularly the Greens and Senator Xenophon for their support of our previous amendment. With regard to amendment (4), it is not the intention of the opposition to support this phase-out. We do recognise the validity of this industry and of this technology. We think the technology does have a valid place and provides an important alternative for households in terms of their choice of hot water service—a service that can reduce their energy consumption, and is therefore a positive in that sense and valid under this scheme. Equally, and importantly for households, it is a product that can be delivered and provided quickly in emergency situations. Regrettably, the time involved in installing, for example, solar hot water services is more difficult and more expensive and requires longer planning by households—which, when replacing a hot water system, is not always possible. At present, given current technology and current options, we think there is an ongoing place for the inclusion of heat pumps.

I also note that the chamber has already carried amendments facilitating a biennial review of the operation of the entire scheme and that Senator Xenophon and those elsewhere who share his concerns about this issue would be able, under that biennial review, to advocate for a phase-out or closure of heat pumps at some later stage.