Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change, Energy Efficiency and Water, Senator Wong. Following the COAG agreement, a review began in November 2009 into the eligibility of new small-scale technologies and heat pumps as part of the renewable energy certificates scheme. When will this review be finalised and reported? What steps will the government undertake as a result of the recommendations?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I thank Senator Xenophon for the question. I did anticipate some earlier questions from the opposition, but I was not so lucky today.

Honourable Senators:

Honourable senators interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

It must be because Senator Birmingham is not in the chamber. I am asked about the renewable energy scheme. By way of background, and I assume the senator is aware of this, the government did introduce a significant increase in the renewable energy target which was passed by the parliament last year. This stands in stark contrast to the record of the opposition when in government where, not only did they preside over a reduction in renewable energy over the period that they were in government—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

We introduced the MRET.

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

You actually presided over a—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

We introduced the MRET. What are you talking about!

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

Thank you, Senator Minchin; I will take that interjection. You actually presided over a reduction in that period in government and then, in relation to the introduction of the MRET, in fact you ignored the review that you yourselves commissioned, conducted by former Senator Tambling, who recommended increases in the RET. You did not take that advice and, as a result, when you left office it had actually declined. In relation to the eligibility of small-scale technologies and heat pumps, what the government indicated is that we would send, through the COAG process, some specific issues that were not addressed when the expansion of the renewable energy target was first discussed by COAG. So, in the discussion as to the design of the expanded renewable energy target, some specific issues that required further consultation with stakeholders and further analysis were referred for review and report to COAG by the end of 2009. The senator is correct: that did include the eligibility of heat pumps under the renewable energy target. (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister provide a time frame in terms of that review? Also, as highlighted by Senator Bernardi on Tuesday, it is evident that heat pumps have swamped the market. Currently, a statutory declaration is required from the purchaser and from the installer stating that the installed unit is appropriate for the intended use. Who polices the statutory declaration process? How many, if any, spot checks have been conducted of these applications?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

In relation to the first part of that, I can indicate the Council of Australian Governments received a report on the specific renewable energy target issues in December and is expected to consider the outcomes of the review this year as part of the COAG process. In relation to the heat pumps issue, and I think Senator Xenophon has somewhat more facts at his disposal than Senator Bernardi did when asking the question, it is the case that, in September of 2009—

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition) Share this | Link to this | Hansard source

You can’t answer a question without referring to me, can you, Minister!

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

Very sensitive, Senator! I thought you were a big boy.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order on both sides! The time for these matters to be discussed is post question time. You may now continue, Senator Wong.

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

Thank you, Mr President. As I said earlier this week, in September last year this government took action to close a loophole which existed in Prime Minister Howard’s legislation regarding oversizing of heat pumps. The regulations introduced by us do require statutory declarations for units with a capacity over 700 litres. The declarations must also cover the fact that the unit is appropriately sized for its intended use and that there— (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Could the minister indicate how many spot checks have occurred as a result of statutory declarations? Finally, given heat pumps can be either solar or electricity based, on what justification are electric heat pumps eligible for renewable energy certificates?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

Senator, the advice I have is that the Office of the Renewable Energy Regulator undertakes a desktop analysis of all statutory declarations provided for the creation of renewable energy certificates from heat pumps and has undertaken site visits of a sample of heat pump installations in line with its compliance framework. I am also advised by the department that the installation of commercial heat pumps has been reduced significantly since this requirement was introduced. In relation to the second part of the question, I would make the point that heat pumps were and have been eligible within the eligibility framework of the renewable energy target since its inception. That was the case under the previous government. As part of our election commitment, the government, at that point, did maintain eligibility requirements. It should be noted that heat pumps use renewable energy from the ambient atmosphere, particularly from the sun, by concentrating that heat. (Time expired)

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

Mr President, I ask that further questions be placed on the Notice Paper.