Jim Molan (NSW, Liberal Party) Share this | Hansard source

The matter of public importance which has been raised today addresses division and dysfunction. Let me tell you, I certainly know where I can find division and dysfunction, and that's in the Labor Party and its policy on borders, its policy on border control, the continual series of Labor lies in its policy on migration, its policy on Palestine and the dysfunction in the Rudd-Gillard-Rudd governments on borders, defence and spending, which has been spoken about by Senator Williams. Why would it ever be different?

What an interesting thought it is to go back and listen to people who say that Labor has learned its lesson! There will never be a chance for Labor to show that, so it's an interesting claim to make. We have a range of policies that we are very, very proud of. Senator Polley claims that she hasn't heard anyone who denies her claim of policy paralysis. Well, I do. This is a party where we are actually encouraged to think, and better policy is the result. We're not the drones of the Labor Party. We have policy, which we are very, very proud of, in the areas of energy, tax, borders, health, welfare, education, the NDIS, a fair go in the workplace—Senator Cameron—child care and budget repair.

When I think of dysfunction and division, I think of Ms Ged Kearney MP and Ms Linda Burney MP. What does it take to establish division and dysfunction within the Labor Party but people like these who blatantly oppose the so-called border policy of the Labor Party. At least 30 Labor Party members at the last election declared they did not believe in the regional processing centres, yet their party believes there is not a cigarette paper between the policies of this government and the policies of the Labor opposition. So we have good policies and we have a record that we can be very proud of.

Let's see exactly what one of these policies in particular is, and that is driving power prices down. The big picture is that the Turnbull government has today announced a set of policies, a package of measures, to put downward pressure on electricity prices and stop energy companies from gouging their customers. What are we doing? We're backing the ACCC to drive lower electricity prices for households and for small businesses.

What is the state of the energy market? If you understand where we're going, it's very important to understand where the energy market is at the moment. According to the Retail Electricity Pricing Inquiry report released by the Australian Competition and Consumer Commission, the ACCC, in July, the national energy market is not operating in the best interests of consumers and reform is urgently needed.

So what are we doing? The government is implementing a number of key recommendations from the ACCC inquiry. The ACCC and the Australian Energy Regulator will be directed to set a default price for households and small to medium-sized businesses, a price that will deliver genuine savings to customers. This will replace the current standing offer in New South Wales, Victoria, South Australia and South-East Queensland—jurisdictions where prices are not regulated. The ACCC found that the significant gap between standing offer prices and market offer prices has become excessive and consumers who have not sought a better deal are being ripped off, but that better deal can be sought and can be obtained. A default offer will protect consumers from being exploited while still allowing for the benefits of retail competition. This measure will prevent retailers from exploiting consumers and small businesses with inflated standing offers.

Under our plan, the Australian Energy Regulator would be given the power to set the maximum price for the default market offer in each region. Customers on high-price standing offers will see their electricity price decrease as they move to a lower default market offer. The ACCC estimates that, for average residential customers on an inflated standing offer, the savings from moving to the new default offer could range from $183 to $416.

What about small business? We also think that small businesses have the right to the same protection and support. The ACCC estimates that savings for the average small to medium-sized business on a standing offer could range between $561 and $1,457.

The government will also act to simplify the confusing array of offers that are currently on the market by requiring retailers to use the new default rate as a reference point for all advertised discounts. This will give customers more clarity when they compare retailers and offers and help ensure they get the best deal. Limits will also be placed on the penalties customers can face when they don't pay their bills on time and so lose their discounts.

The government will initially seek to work with the states and territories on this reform. If the states do not agree, we will implement the offer through Commonwealth law. We expect the new default offer to apply from July 2019 at the latest. In addition, the Treasurer will direct the ACCC to hold an inquiry into prices, profits and margins in the National Electricity Market. The inquiry will run until 2025 and will include monitoring of retail prices and margins, our wholesale bids and conduct and contract market liquidity.

We will need regular monitoring—there's no two ways about that. We will need regular monitoring. The ACCC will prepare ongoing reports at least six months—