John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Ludwig. In light of the recent communication to my office by Mr Paul Jarman, Assistant Director of Regional Projects for the Department of Planning and Community Development in Victoria, a copy of which has been supplied to your office, stating that the Waubra wind farm, which has been under review since it commenced in 2009, has not been signed off on any noise compliance by the Minister for Planning, Matthew Guy, therefore making it noncompliant, can the minister advise how the Waubra wind farm gained accreditation with the Clean Energy Regulator, which has enabled them to receive some tens of millions of dollars in renewable energy certificates?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank Senator Madigan for his question on our climate change policy. I will start by indicating that wind farms are a very cost-effective form of renewable energy and they are already cutting carbon pollution.

Opposition Senators:

Opposition senators interjecting—

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

No, they don't.

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I will not take the interjections from those opposite because Senator Madigan does deserve an answer in this area. The Waubra wind farm is a significant local investment in rural Victoria and it is having a positive effect on the regional economy.

The Waubra wind farm was accredited under the Renewable Energy (Electricity) Act 2000 on 10 March 2009 by the Renewable Energy Regulator. Like all applications for the accreditation of a power station, it was required to submit extensive documentation and to demonstrate compliance with state or territory planning laws. The regulator then takes that information into account in accrediting power stations and gets regular information from power stations about a range of issues, including ongoing compliance. However, it is important to remember that the Clean Energy Regulator is not there to enforce state and territory planning requirements. States and territories do have a wide range of powers to ensure power stations comply with the wide-ranging requirements that they are subject to under state and territory laws. To require, as seems to be the premise of the question, the Clean Energy Regulator to enforce state and territory legislation would undermine the proper allocation of jurisdictional responsibility between state and federal governments and add unnecessary red tape to clean energy investments. A duplication of regulation and confused lines of responsibilities would in fact ensue. Clearly, there are—(Time expired)

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. In the event that a wind farm that has been granted accreditation in direct contravention of the act and has been in receipt of RECs to which it was not entitled, will the minister order a review of the accreditation process and a review of the accreditation of all other wind farms that have been accredited under the same regulations as the Waubra wind farm?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank Senator Madigan for his first supplementary question. I do not accept the entire premise of the question—

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Madigan is entitled to hear the answer. Those debating across the chamber: you have a few minutes before you can participate in the debate. When there is silence we will proceed. Senator Ludwig, continue.

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

The regulator is aware of the allegations which you have raised and is investigating the issue further, including talks with state authorities to that effect. However, to date, the Clean Energy Regulator has not made any determination that the Waubra farm has breached the Renewable Energy (Electricity) Act 2000 and it is important in those circumstances not to prejudge. The regulator has thorough processes for ensuring compliance with his legislation and investigating any potential breaches. The act was comprehensively reviewed by the Climate Change Authority at the end of last year. For that reason there is no need for a further review of the accreditation process.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I have a second supplementary question. In the event, Minister, that the regulator finds that they are noncompliant, will you order an investigation of how many renewable energy certificates have been raised by noncompliant power stations and traded into the REC market, as well as the extent to which the REC market and REC market prices may have been distorted by this possibly illegal activity? Is the minister prepared to instigate prosecution for any false or misleading statements that may have been made in the gaining of accreditation by these power stations?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

What we should not do is get ahead of the investigations or prejudge in these circumstances. To date, nothing has been proved about the accreditation of the power stations and there is no evidence of widespread fraud in the renewable energy certificate market. The regulator takes the integrity of the renewable energy certificate market very seriously and has strong enforcement powers for matters within his responsibility. The scheme has been highly successful over the last 10 years and during its time it has continued to maintain bipartisan support. However, it is not the regulator's responsibility to enforce state and territory planning legislation. But, as I indicated earlier in my answer to the first supplementary question, it is a matter that is being looked at by the regulator and they do take it very seriously.

Stephen Conroy (Victoria, Australian Labor Party, Minister for Broadband, Communications and the Digital Economy) Share this | Link to this | Hansard source

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