Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question is to Senator Brandis, the Minister representing the Prime Minister. Yesterday the minister told the Senate how entranced he was by Minister Frydenberg's presentation on the energy crisis to the coalition party room. The presentation slide headed 'Gas prices are pushing up electricity prices' says, 'Every dollar/gigajoule increase in gas prices leads to an increase of around $10/megawatt-hours in the cost of gas-fired electricity generation.' Given you were so entranced by this presentation, can you explain to the Senate what this means for Australian industry?

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

I will tell you the conclusion that I derived from Mr Frydenberg's masterly presentation. It was in fact a sentiment quoted by your colleague Senator O'Neill in the first question today: that doing nothing is not an answer. And that is why the government, informed by the study that Dr Alan Finkel has conducted, is moving in this area in order to achieve the three objectives of putting downward pressure on electricity prices, ensuring reliability of supply and ensuring that Australia meets its international commitments to reduce emissions. That is what we are going to do, and it is no secret that this has been an area in which governments of both sides have sought to try and get the right policy outcome, but the Turnbull government is delivering the right policy outcome—affordable energy, affordable electricity, reliable supply and adherence to our international obligations to reduce emissions—by the decisions we will be making in the near future.

Stephen Parry (President) Share this | Link to this | Hansard source

A supplementary question, Senator Carr?

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

In this morning's Herald Sun it was reported:

Household bills are now higher than ever, having soared more than 119 per cent over the past decade. Families are now paying $1837 a year on average.

Page 9 of Minister Frydenberg's presentation clearly shows that this rise has entirely occurred within Malcolm Turnbull's prime ministership. Is that the case?

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

No, it is not. Obviously you have only a few pages of the presentation leaked, because—

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

No, I have not. I've got the whole lot here.

Stephen Parry (President) Share this | Link to this | Hansard source

Order! You have asked your question, Senator Carr.

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

what the graphs you are not referring to show is that there was actually a doubling of electricity prices during the period of the Labor government—the longest sustained increase in electricity prices in the recent past.

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

Own goal!

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

Yes, Senator Macdonald, another own goal by Senator Carr from North Korea over there. I withdraw that, Mr President.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you.

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

So, Senator Carr, we are not going to have Soviet style economics, as you would wish us to have. We are not going to be driven by ideology, as you have been. We are going to be driven by economics and we are going to be driven by engineering. And we are going to rely upon the best advice we can, including the advice of Dr Alan Finkel, to deliver lower, affordable electricity prices; reliable supply; and commitment to international agreements. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

A final supplementary question, Senator Carr.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

I would ask the minister: can you confirm that on page 10 of Minister Frydenberg's presentation it makes it clear that under the Turnbull government's current policies electricity prices will continue to rise?

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

Senator Carr, that is not the case. What we are talking about, Senator Carr, are the consequences of inaction and the need for action. Senator Carr, you may refer to a document that demonstrates what would be the consequences of inaction. That is the very reason why we are taking action. It is the very reason why this is an important issue to be dealt with now, so we can ensure that Australians have affordable electricity prices—unlike the period of the Labor government, when electricity prices doubled—and they can have reliable supply, unlike their experience under the Labor government, in particular in South Australia. That entire state was blacked out as a result of a policy driven by ideology rather than engineering. And it is also to ensure that we adhere to our international commitments to reduce carbon emissions.