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

My question is to the Minister representing Minister for Department of Climate Change and Energy Efficiency, Senator Wong. I refer the minister to the submission to the government from the Energy Supply Association of Australia regarding Labor's carbon tax, which warns that:

Systemic failure or financial distress among major retailers would increase volatility and risks in the energy market, reduce competition and potentially undermine system reliability and security of supply.

Given the ESAA claims—

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Simon, why did you do a back flip on climate change?

Senator Bernardi interjecting—

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

Order, on both sides! Senators Cameron and Bernardi! Senator Birmingham is entitled to be heard when he asks the question.

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

Given the ESAA claims there are 'serious deficiencies in the carbon tax plan', will the government guarantee that Australia will continue to have secure electricity supply without the need for additional multibillion-dollar bailouts or assistance packages?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I make a couple of points in starting the answer to that question. The first is, the government has made—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Just answer the question please.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am seeking to answer it, Senator Macdonald. The government has been absolutely focused on ensuring energy security in the development of its clean energy package and you will see from the range of measures in the package that energy security has been a priority. You will also see not only in relation to the payments in assistance to generators but also in the pursuit of a contract for closure and the involvement of the relevant regulators the government has been very clear about the critical nature of ensuring the security of energy supply.

The second point I would make is that if the senator is concerned about these matters he ought to look at his own policy. Under the direct action policy funded by taxpayers, and the $1,300 per year impost on Australian families, the coalition is proposing also to shut down coal fired power generators in the Latrobe Valley and replace them with gas. I am referring to public statements made by members of the coalition front bench.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

So how is this relevant to the question?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It is relevant, Senator Abetz, because you cannot come in here and ask questions about energy security pretending that you care about it when you are so recklessly proposing, without thinking through the energy security issues, a range of taxpayer funded purchases of abatement that even your own frontbench cannot defend and be consistent on. We have had the member for North Sydney confirming that the coalition's policy was to shut down coal fired power generation. (Time expired)

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

Mr President, I ask a supplementary question. Given the serious deficiencies identified in the carbon tax by the ESAA, won't this undermine electricity security, the very threat of which leads to business uncertainty and to job losses? What contingency plan does that do not have to deal with the system reliability concerns in energy with suppliers so as to protect Australian jobs and businesses?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The government has established under the clean energy package an energy security fund to mitigate any energy security risks. We have allocated $5½ billion dollars over six years to help the transmission of highly emissions-intensive coal fired electricity generators. We have also committed to run an expression of interest process to close around 2,000 megawatts of highly emissions-intensive coal fired electricity generation capacity before 2020. The provision of assistance to the energy sector is about maintaining energy security and supporting the sector's transformation to a new low-emissions future. Mr President, I would make the point if those opposite are seriously concerned about business certainty then they would back the carbon price, because the thing that is preventing or stymieing investment in the energy sector is the uncertainty over pricing carbon. That is what is stymieing certainty in the energy sector, aided and abetted and encouraged by the opposition. (Time expired)

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

I have a further supplementary question, Mr President. Given the minister has only been able to highlight measures that energy suppliers have described as seriously deficient, is the minister concerned about the uncertainty that is being generated by the carbon tax? How is this uncertainty surrounding electricity reliability impacting on business confidence and therefore business investment in the economy at present? Isn't the very threat of Labor's carbon tax plan already casting a dark shadow over the Australian economy?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The dark shadow over the Australian economy is caused by the unbelievably reckless talking down of the economy by those opposite. They come in here and talk about uncertainty, after talking up uncertainty and talking down the Australian economy, refusing to provide business with any certainty and even adding to it by saying, 'Oh, you'd better not buy anything; we'll rip the contracts up.' We know those opposite are quite happy to attack the Australian economy in their bid to attack the government, and what that shows is how completely economically reckless they are. And to come in here and talk about certainty and talk about confidence when they have members of their frontbench likening the Australian economy to that of Greece just shows how appallingly economically reckless this coalition is.