Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Resources and Energy, Senator Evans. Does the government agree with the coalition energy spokesperson, Mr Ian Macfarlane, but not its leader, Mr Abbott, that some state governments have been profiting from gold-plating electricity distribution systems, unnecessarily driving up electricity bills for ordinary Australians? If so, given COAG's slow and poor performance, and conflict of interest on electricity market reform to date, what confidence can the community have that anything other than talk will be done about it?

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

I thank Senator Milne for her question. There is a great deal of community concern about the increases in household electricity prices that we have seen over the last three years. I understand that in many areas prices have increased by more than 40 per cent, and that is obviously concerning to people faced with those costs, particularly people on fixed incomes, pensioners and other low-income earners. In my own state of Western Australia there has been a huge debate about this. People are very concerned by those rising electricity prices.

On 7 August, the Prime Minister sought to bring attention to some of the issues that exist in the industry and to concern that things such as potential overinvestment in network infrastructure or the pricing around electricity by state governments may have seen consumers paying more than they needed to.

In terms of the carbon price, the federal government made sure that the household assistance was more than adequate to cover any increases driven by the carbon price. But the ongoing increases in electricity prices are concerning. The Prime Minister, in asking states to bring possible remedies to the next COAG meeting, is trying to seriously address what is a major concern for families and households in Australia. While the implication in the senator's question was rather negative, I think that is not a bad starting point to try to focus on what we can do better to try to keep electricity prices down while maintaining a sustainable system. And, hopefully, COAG will make a step in that direction. (Time expired)

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the Prime Minister's concern about the higher than necessary electricity bills because of the incentive to sell more electricity instead of helping energy efficiency, when can the community expect the implementation of a national energy savings initiative, which the government committed to investigate as part of the clean energy future agreement? When can we expect that?

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

I think the senator is right to point to the need to target energy savings approaches as part of dealing with these issues. It is part of why we have implemented a carbon price as part of our encouragement of alternative energy sources. I think people accept that household usage, patterns of usage and behaviour are an important part of energy saving. My own partner is training us all to turn off the power source—something I am not very good at yet, but it is part of that practical response to the problem.

In terms of the specifics of the national energy savings initiative, I do not have a brief on that with me but I am happy to take that on notice for Senator Milne and get her an answer as soon as I can as to the status of and progress on the national energy savings initiative.

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Finally, why did Minister Ferguson claim that the NEM objective is universally supported, when the evidence is to the contrary? Minister, can you tell me which of the ongoing inquiries address the question of whether the national electricity objective should be amended to incorporate sustainability and climate change? So what is the evidence for the statement and which review actually addresses the objectives of the NEM?

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

While I am sure Minister Ferguson acted for exactly the right motives and was driven by sound public policy, I have not actually been briefed as to why—

Senator Brandis interjecting—

No, it does not hurt me at all. I am not sure exactly why the remarks in relation to the NEM were made, nor the particular review focus that the senator is seeking. As with the first supplementary, I will try to get the senator an answer on notice that deals with those issues.

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 the Prime Minister, Senator Evans. I refer the minister to the same speech as Senator Milne referred him to—the one to the Energy Policy Institute of Australia given by the Prime Minister last week—and I ask the minister: when did the Prime Minister first become aware of the mounting pressures being faced by so many Australian households and businesses as a result of increasing electricity prices?

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

Can I say to the good senator that the Prime Minister has been aware for some time, as we all have, about the growing community concern about the increasing costs of electricity in Australia. It has been a concern that has been raised with this government for some time and has been part of the community debate. The senator would be aware, though, that the state governments are responsible for electricity prices in this country.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

What about the carbon price?

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

Senator, if that is wrong, I stand to be corrected. But the last time I checked the state governments were responsible for the setting and control of the electricity systems in their states.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Won't the carbon price have an impact on electricity prices?

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

The carbon price will have an impact on electricity prices—something that we have made clear for a very long time. It is also the case that the family assistance package, shaped by this government, that has been paid to families across Australia, was designed to assist them in meeting some of those costs. It has been quite clear from all the regulatory assessments that have been done that the increased cost as a result of the carbon price will be more than compensated for by the family assistance packages.

No-one is maintaining that the Treasury estimates are inaccurate. They have broadly come in line with the estimates we made before the introduction of the carbon price and the family assistance package is covering, if you like, the costs that are being passed on. What was clear from recent reporting is that the major driver of cost increases in electricity is not the carbon price—

Senator Brandis interjecting—

Senator, that is a question of fact. You may be in denial but it is a question of fact.

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. I thank the minister for his answer. As the minister indicated, given that the Prime Minister and the Labor government have apparently had concerns about rising electricity prices for some length of time, why has the Prime Minister chosen to voice these concerns just six weeks after the implementation of her 10 per cent carbon tax on Australia's electricity prices?

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

I gather the senator's question seeks to criticise the government and the Prime Minister for responding to community concerns. I do not know where he has been. He certainly has not been in Western Australia, where the Barnett government are getting hammered about the increases in electricity prices. I think you will find the Premier would accept that assertion. It is the case that we have been aware for some time of the growing community concern. It is why when we introduced a price on carbon we made sure that there was assistance that more than covered the cost of the increase, because we knew that people were finding it tough to deal with those costs. The Prime Minister is articulating the concern abroad in the community and we know that that is not driven by the carbon price; it is driven by other elements and addressing those is an important national public policy issue. (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. If the Prime Minister and the Labor government are serious about the impact of mounting electricity prices on so many Australian households and businesses, why won't the government do the one thing entirely within its power to reduce electricity prices by an average of 10 per cent? Why will the government not simply axe its carbon tax?

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

The approach adopted by the opposition is fundamentally dishonest in that it seeks to pretend that the major driver of electricity price increases in this country is driven by the carbon price. They know that is false and no-one else asserts it. They also know that the family assistance measures introduced by this government have provided funding that is greater than the costs incurred by the increase in electricity prices driven by the carbon price. These are family assistance measures that the coalition seek to reverse. They seek to reverse the assistance we provided to meet the cost of paying—

An opposition senator: We'll repeal the carbon tax.

You never will, Senator, you never will. We know you will not reverse the price on carbon. We know you will not do that. We are interested in protecting Australian families from excessive cost increases and that is what we are about.