Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Attorney-General, Senator Brandis, in his capacity representing the Prime Minister. Can the minister update the Senate on how the coalition government's National Energy Guarantee will deliver more affordable and more reliable energy to Australian families and businesses, particularly in our great home state of Queensland?

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

I thank Senator Barry O'Sullivan for that very important question. Senator O'Sullivan, the Turnbull government has taken action right across the board that has already seen benefits for Australian consumers, particularly for those in Queensland. On networks, we've abolished the limited merits review to stop energy network companies gaming the system. We've secured an agreement with the domestic gas producers which has seen the spot gas price reduce and more gas put onto the domestic market. Our National Energy Guarantee will also bring down wholesale prices by 20 per cent to 25 per cent, which could be a saving of around $5 million for an energy-intensive industrial user.

Senator O'Sullivan, you and I know that the Palaszczuk Labor government in Queensland has been ripping off energy users in our home state by dragging money out of their energy network systems and abusing the processes. The coalition government is determined to put the interests of all Queenslanders and Australians first when it comes to energy policy. Tim Nicholls and his LNP team are also committed to more affordable and reliable energy for Queenslanders. The LNP in Queensland will end Labor's secret tax on electricity and save a typical Queensland family, on average, $160 per year on their power bill. By 2020, savings will increase to around $300 a year on average. That's $300 a year less on the electricity bill for an average Queensland household thanks to Tim Nicholls and his LNP team. Working with Tim Nicholls and the LNP in Queensland, we will deliver a real difference to Queensland electricity budgets and power prices.

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Senator O'Sullivan, a supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

It was disappointing then to see Senator Watt support the gouging by the Queensland Labor government. Maybe he'll find the time to condemn it. Attorney, can you outline the benefits of competition in Queensland's energy market?

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

Yes, Senator O'Sullivan, I can. The former Queensland Labor government merged three generation companies into two and the Palaszczuk government wanted to take this further by merging them down into one. This is what the chairman of the ACCC, Rod Sims, said about that policy of the Palaszczuk Labor government and the further generation concentration:

It is a great worry.

They … turned Queensland from one of the most competitive generation sectors to the least.

That's what Rod Sims, the chairman of the ACCC, said about the Queensland Labor government's power policy.

Since the Labor government caved in and gave a direction to one of its state-owned generators, Stanwell, we saw an immediate 20 per cent reduction in prices, which begs the question of why the Palaszczuk government hasn't reined in its other 800-pound gorilla of a state-owned generator. That's why Queenslanders should welcome the LNP's commitment to unwind Labor's merger of electricity generation assets. (Time expired)

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Senator O'Sullivan, a final supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

It was good to see Senator Watt sit quietly through that one. Obviously, he didn't have anything to contribute. Is the Attorney-General aware of any impediments to delivering affordable electricity to Queenslanders?

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

Yes, Senator O'Sullivan. Under the Palaszczuk Labor government, Queenslanders were paying the highest wholesale prices in the first half of this year—30 per cent above the National Electricity Market average. That's because Queensland Labor have mismanaged the electricity system, imposing higher costs on families and businesses. They have, as Mr Sims and the ACCC concluded, threatened the competitiveness of Queensland with poorly considered, ideologically driven renewable energy targets. We've seen this in South Australia, we see it coming in Victoria, and Labor want to bring it into Queensland—force-feeding intermittent generation into the system without regard to costs, system reliability or investment certainty. One big difference between the LNP and the Palaszczuk Labor government: lower electricity prices under Tim Nicholls.