Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for the Environment and Energy, Senator Birmingham. Last Monday, the Prime Minister told the ABC that his National Energy Guarantee had been 'endorsed by the party room already'. The next day, the minister's South Australian Liberal colleague the member for Barker, Mr Tony Pasin, said:

I don't agree with the assertion that it has met with the approval of the party room …

Who is correct—the Prime Minister or Mr Pasin?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Gallacher for his question. I'm very happy to let Senator Gallacher know—although we, of course, don't share all of the inner workings of the party room—that the National Energy Guarantee has been supported and endorsed by the coalition party room on more than one occasion in deliberations about the framing and development of the coalition's policy, which is part of a whole suite of measures we're applying, as the government, to bring down power prices for Australians.

Our approach is about ensuring that Australian households and Australian businesses end up paying less for their power. That's why we reformed the retail market, making sure that people get better and clearer information in relation to their household bills and the opportunity to switch plans. That's why we reformed the gas market and made sure that Australians got priority in relation to gas. Of course, we've seen wholesale power prices come down as gas prices have come down as a result of the Turnbull government's interventions. It's also why we reformed the transmission market to make sure the way in which transition systems or companies could game the system ended. It's why we're pursuing the NEG: to make sure that, in relation to future energy policy in Australia, a premium is placed on getting lower prices and higher reliability. Indeed, the modelling released by the independent expert Energy Security Board has made it clear that Australian households stand to gain around $550 as a result of the implementation of the NEG. These are real savings that can deliver real benefits to Australian households, improve the reliability of energy and, of course, help to meet Australia's international obligations. That's why it's good policy. That's why we've continued to progress it through the states, why we'll progress it through the party room, and why we'll progress it through the parliament too.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Gallacher, a supplementary question.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

This is my first supplementary question. The chair of the coalition's committee on climate and energy, Liberal member for Hughes, Mr Craig Kelly, also disagrees with the Prime Minister's assertion, claiming:

I think realistically we would need more time to consider this …

Who is telling the truth—the Prime Minister or Mr Kelly and Mr Pasin?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I'm not sure how things work in the Labor Party caucus. We've heard Senator Cameron and others talk before about them all being treated like zombies.

Honourable Senator:

An honourable senator interjecting—

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

'Lobotomised zombies'—that's right; that's what Senator Cameron said the approach to the Labor caucus was. But in the coalition party room we work through each of the stages. So, yes, the National Energy Guarantee has been discussed in the coalition party room and the steps have been taken to endorse it at each step. Of course, the National Energy Guarantee will result in legislation. That legislation, too, will be considered by the coalition party room and we'll make sure that it has the fair and proper consideration.

Scott Ryan (President) Share this | Link to this | Hansard source

Order! Senator Birmingham, please resume your seat. Senator Cameron, on a point of order.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Yes, a point of order on relevance. The question was: 'Who is telling the truth: the Prime Minister, Mr Kelly or Mr Pasin?' The minister has not gone anywhere near that point, and he should at least have the question drawn to his attention.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Cameron, you've reminded the minister of the question. The minister is allowed to address other parts of the question as well. Senator Birmingham.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

Thanks, Mr President. As I was making very clear, each step of the NEG to date has been endorsed by the coalition party room and the next steps will rightly go to the coalition party room too, exactly as is the normal process. But, of course, those opposite don't want to talk about the policy; they're interested only in the politics, because for them it's a track record of power prices only going up, whereas we're delivering the policies to drive power prices down. (Time expired)

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My final supplementary question: today, former Prime Minister Abbott said:

I certainly don't accept that there is overwhelming support, as the Prime Minister says.

Given former Prime Minister Abbott agrees with Mr Pasin and Mr Kelly, was the Prime Minister wrong or was he misleading the Australian people while denying the coalition's climate policies are the cause of his government's ongoing policy paralysis?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

As I've twice already sought to tell Senator Gallacher, the National Energy Guarantee has been to the coalition party room multiple times, each of the next steps in relation to its adoption has been supported and the government has progressed those steps successfully. When it comes to legislation to come to this parliament, it will go through the usual process as well: through the coalition party room. But I can assure those opposite that every single member of the coalition wants to see lower power prices. The National Energy Guarantee is part of our suite of policy measures to deliver lower power prices, whereas those opposite, of course, don't know what their policy is when it comes to energy. But such as that policy exists, we know that it is basically a doubling or thereabouts in relation to emissions reduction targets and a doubling or thereabouts in relation to the Renewable Energy Target, and that all of that will just result in higher prices for Australians and less reliability, unlike the coalition's policies, which are delivering lower prices and greater reliability. (Time expired)

Amanda Stoker (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia, Senator Canavan. Minister, Australia is blessed to have an abundance of resources available. Can the minister please advise the Senate how Australia's resources contribute to providing affordable, reliable energy?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

I thank Senator Stoker for her question. She's absolutely right: we are blessed, as a country, to have abundant resources that can be converted into cheap energy for the Australian people. The clear lesson around the world is that the countries that do develop their energy resources, if they're lucky enough to have them, have cheap energy. We traditionally have had that advantage. On our side of politics, we believe in the development of our energy resources to make Australia a strong economy, to create jobs, to support our manufacturing industry and to help households keep power bills down too. We support a strong resources sector in this country, particularly the individuals across our country who mine our coal, extract our gas, help underpin our economic development and help underpin thousands of jobs—not just in the resources sector but also in the manufacturing sector; all of the sectors. That's what we believe and that's what we are passionate about doing and developing. Right now, across Australia, our coal resources account for 60 per cent of the electricity produced in Australia, and our gas resources contribute 20 per cent on average to our energy resources. So 80 per cent of our electricity comes from fossil fuels that are developed here in this country.

Unfortunately, the other side declared a war on cheap energy. They have declared war on these cheap energy resources because they don't want to see the coal extracted. We have their energy minister out there saying there's a 'coal delusion' across the economy. We have the opposition leader, Mr Shorten, saying that people who support the coal sector are 'knuckle-draggers'. I don't know if he said that in Central Queensland, but he says people who support coal are knuckle-draggers. Finally, we have some ray of hope here that some in the Labor Party have some common sense, because the member for Paterson, Meryl Swanson, has come back from Japan and said that the private sector should consider the construction of coal-fired power stations here in Australia. She has seen what's happening overseas with our coal in Japan; it can produce cheap power. That's why we back the development of this sector, we back Australian jobs and we back Australian families having cheaper power prices.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Stoker, a supplementary question.

Amanda Stoker (Queensland, Liberal Party) Share this | Link to this | Hansard source

Minister, how has the Liberal-National government taken action on gas prices?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

As I said, our gas industry is very important for our electricity sector. It supports 20 per cent of electricity production in Australia. Last year, that was threatened by the export of gas to other countries. When we saw—in advice to us from AEMO—that there was a shortfall potentially emerging, we as a government took action. We met with the gas industry the week after that. We imposed a gas export control framework. Since then, gas prices—gas offers to the market—have fallen by more than 50 per cent. Gas prices have fallen by about one-quarter in spot markets because we've been able to return more gas to the domestic market. Recently, just in the last few weeks, the ACCC issued a report saying that LNG producers have become more active due to a combination of factors, including 'the commitment made to the Australian government in the October 2017 heads of agreement'. We are determined to bring down energy prices. We've done that by taking action in the gas sector.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Stoker, a final supplementary question.

Amanda Stoker (Queensland, Liberal Party) Share this | Link to this | Hansard source

Minister, what more can be done to take action on gas prices and to increase supply?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

Well, in that same report that the ACCC released on gas markets in the last few weeks, they clearly pointed out one other point I made earlier in regard to Senator Stoker's question, which was that we need to develop our energy resources if we're going to bring down prices further. Further reductions in gas prices do require a supply of more gas coming onto the market. The ACCC said:

While conditions in the east coast gas market have eased considerably since the extremes reported in 2017, only action by governments and the gas industry to increase domestic gas supply can bring material price reductions into the future …   

That is the clear advice to governments; those that want to bring energy prices down have to come on the journey of supporting the development of gas supply. We need more gas supply in southern Australia. That's why we need to get rid of these unscientific moratoriums and bans in states that are depriving Australians of their gas resources, that are pushing up power prices for all Australians and that will cost jobs unless action is taken.