David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I present the 10th report of 2017 of the Selection of Bills Committee. I seek leave to have the report incorporated in Hansard.

Leave granted.

The report read as follows

SELECTION OF BILLS COMMITTEE

REPORT NO. 10 OF 2017

1. The committee met in private session on Wednesday, 6 September 2017 at 7.14 pm.

2. The committee recommends that the following bills not be referred to committees:

Education Services for Overseas Students Amendment Bill 2017

3. The committee deferred consideration of the following bills to its next meeting:

Customs Tariff Amendment (Singapore-Australia Free Trade Agreement Amendment Implementation) Bill 2017

ASIC Supervisory Cost Recovery Levy Amendment Bill 2017

Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017

First Home Super Saver Tax Bill 2017.

4. The committee considered the following bill but was unable to reach agreement:

(David Bushby)

Chair

7 September 2017

APPENDIX 1

Proposal to refer a bill to a committee

Name of bill:

Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017

Reasons for referral/principal issues for consideration:

Scrutinise implications of Bill on electricity prices, maintenance of infrastructure and energy security.

Possible submissions or evidence from:

Energy industry and Network businesses. Electricity and gas consumer groups Unions

Committee to which bill is to be referred:

Senate Environment and Communications Legislation Committee

Possible hearing date(s):

To be determined by the committee

Possible reporting date:

16 October, 2017

Senator Anne Urquhart

I move:

That the report be adopted.

Katy Gallagher (ACT, Australian Labor Party) Share this | Link to this | Hansard source

I move the amendment circulated in my name:

At the end of the motion, add, “but in respect of the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017, the bill be referred immediately to the Environment and Communications Legislation Committee report by 16 October 2017.”

Just briefly, this amendment is to have the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017 referred to the Environment and Communications Legislation Committee, with a report date of 16 October 2017.

Just to explain this, while Labor support the bill, our consultation with stakeholders led us to the view that there is merit in holding a short inquiry. The abolition of the limited merits review is a large reform and should be subjected to a process and to proper scrutiny. The limited merits review can be accessed by parties other than network companies—groups like unions and consumer groups—and Labor believe it's important their views are heard by the Senate. The inquiry will be very prompt, with a report back in the first sitting week of October, and will not have any material impact on the work of the Australian Energy Regulator or the broader energy system. I hope that the Senate can support this amendment.

Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

The government doesn't support referring the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017. The government has a commitment to an affordable, reliable electricity system. To help put downward pressure on electricity prices, the government is taking action on all fronts. With network costs making up around 50 per cent of an average electricity household bill, the abolition of the LMR regime is a key part of the government's plan.

The evidence is clear that the LMR regime has failed consumers, adding $6.5 billion in prices for households and businesses. There has not been a single occasion when the LMR regime has reduced prices for consumers. The process is seen as a free option for network businesses. A recent Macquarie note described LMR, saying currently investors are getting this as a free option, with the upside being it brings forward a dividend surprise. This view was shared by the Council of Australian Governments Energy Council following the review of the limited merits review regime in 2016. The council acknowledged at its 14 December 2016 meeting that the regime was failing and was leading to higher prices for consumers.

Based on the clear facts, there isn't a need to refer this bill to a committee. I note that the shadow minister for climate and energy said on 21 June at a doorstop:

Abolishing the Limited Merits Review we support and there has frankly been too much time wasted over the last 12 months from the Federal Government to actually make that happen. So we are glad it has finally happened.

So the question as to why the opposition is proposing to waste time on a committee is one that the government doesn't understand.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The question is that the amendment moved by Senator Gallagher to the motion that the report of the Selection of Bills Committee be adopted be agreed to.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The question now is that the original question, as amended, be agreed to.

Question agreed to.