Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is for the Minister representing the Minister for Climate Change and Energy, Senator McAllister. Project Marinus began in 2017. For more than seven years this project has literally been a pipeline dream of Tasmania, Victoria and the Australian government. Construction for the project isn't meant to start until 2026, with the first cable to be ready in 2030. A second cable, if that ever goes ahead, will apparently be ready by 2033. Energy market volatility around the world has blown the cost of undersea cables out of the water, and this has been worsened by incompetent management at Marinus Link and a clueless Tasmanian government. By almost every metric it seems that the Marinus Link project isn't on track to be ready on time, let alone to be built at all. Minister, are you confident this project will be delivered on time?

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

I thank the senator for her question. I know that the senator has had a long period of advocacy for Tasmanians and their interests. She's right that projects like this do have long lead times, and she is also right in saying that, for a very long time, nothing happened on Marinus. The former government talked a very big game, but they did not fundamentally progress the project. The former minister, Mr Taylor, said of this project that it would 'provide the affordable, reliable and sustainable electricity that's not just required here in Tasmania but required in the mainland'. He said that, but it didn't get anywhere, did it? It's a shame, because the AEMO ISP in 2024—this year—finds that that project remains an actionable project and provides hundreds of millions in net market benefits.

The government has made progress. We are actively managing the cost pressures that the senator refers to in her question. In September 2023 governments together revised their agreement in recognition of the impact of rising project costs. The new agreement prioritises delivery of the first cable, which delivers close to two-thirds of the total project benefit for the NEM, and the Commonwealth also increased its equity stake in the project and increased the concessionality of the Commonwealth's debt finance. So we're seeing action. In August the project company signed contracts for the high-voltage cables, and in May they executed the contract for the converter stations. This progress is because this government is working constructively with the states through Rewiring the Nation. Those opposite propose now, as I understand it, to abolish Rewiring the Nation and all of the progress that has been made on Marinus with it. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Lambie, first supplementary?

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

There is a long line of critics that say Tasmanians will be the losers of this project. Tasmanians are already facing increased energy bills. The Australian government has agreed to provide underwriting in relation to their agreement through the Rewiring the Nation program, as you said. Minister, what guarantee can you offer Tasmanians that their power bills will be reduced when the Marinus Link project comes into effect?

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

Once delivered, Marinus Link will put downward pressure on energy prices, and that's why we are working with the states and territories through Rewiring the Nation to deliver it. We've now seen that those opposite haven't changed. They're promising to scrap Rewiring the Nation to pursue this expensive nuclear scheme—against the advice of the experts, I will say. It is the most expensive form of energy that there is. That's their plan. In relation to Tasmania, it explicitly rules out jobs for Tasmanians and only guarantees higher power bills.

Marinus Link is a crucial transmission project. It will provide huge benefits to Tasmania and the mainland. It will deliver jobs in Tasmania and Victoria, with both states estimated to see up to an additional 2,400 jobs at the peak of first cable construction, with over 1,400 of those in Tasmania during peak construction, and $2 billion in additional economic activity.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Lambie, second supplementary?

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

Marinus Link is now 40 per cent owned by the Australian government, 33.3 per cent owned by the Victorian government and just 17.7 per cent by Tasmania. The Tasmanian and Victorian economies have absolutely driven off a cliff, but Tasmania still says they're committed to the project. Minister, as the biggest shareholder, has the government sought assurances from the Victorian government that their commitment to the project is assured, and when was that last checked?

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

All three governments remain committed to Marinus Link, and that is because they understand the significant benefits that the project will deliver to energy customers in Tasmania and on the mainland. I've already talked, in my answer to your first supplementary question, about the jobs benefits, but the other benefits, of course, include reliability. This will improve reliability in the NEM and better utilise existing Tasmanian generation, with the first cable delivering an additional 750 megawatts of firmed supply to the mainland at times of peak demand, especially in Victoria. It also provides a measure of security for Basslink. That's additional security for Tasmania. It's important redundancy for that Basslink cable.

The second cable, which will be considered after the final investment decision is taken for cable 1, will support investment in Battery of the Nation projects as well as Tasmanian renewables, which will put downward pressure on electricity prices. (Time expired)

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister. Minister, we know that the Albanese government is tackling cost-of-living pressures for Australians, including through providing every single Australian a $300 rebate on their energy bill. What else is the Albanese government doing to help Australians put downward pressure on their power bills?

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

Well, the senator is right. Supporting households in meeting cost-of-living challenges is this government's No. 1 priority. We do know that many families are doing it tough, and it's why, every time a family opens their electricity bill this year, it will be cheaper, as a consequence of this government's energy price relief policies. We're providing every single Australian household, and over 1.25 million eligible small businesses as well, with real relief to help with the cost of living.

There are some promising signs. Updated inflation figures show electricity prices fell 17.9 per cent in the year to August, but there is more to do. Our government is investing in lower power prices by investing in renewables and firming capacity like batteries, and Australians know that renewable energy means savings. It is why Australians have led the world in rooftop solar. There are now more than one in three Australian homes with panels.

That's why our government's energy plan supports Australians to directly take control of their energy use by installing household solar and batteries. It's not possible, if you rent or live in an apartment, to do this on your own, so we're also investing in community solar and batteries. Just last week, we unveiled a new joint community solar and storage project with the Queensland Miles government that will see up to 5,500 households in Caloundra and in Townsville set to save up to $800 a year on their electricity bills.

This is because we listen to the experts. We know that a mix of technologies will deliver reliable and clean power to Australians, and that is backed by CSIRO and backed by AEMO as the least-cost pathway. It's all part of the reliable renewables plan. It's the plan put together by experts for affordable, reliable energy.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bilyk, first supplementary?

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Thank you for that answer, Minister. On last night's episode of Four Corners, former Liberal prime minister Malcolm Turnbull described nuclear power in Australia as 'recklessly stupid and dangerously stupid' and said that there are plenty in the coalition party room that know this is nonsense. Could the minister explain how Labor's reliable renewables plan, backed by the entire Labor caucus, is helping to provide the policy certainty required to deliver affordable energy to Australians? (Time expired)

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

You're right, Senator Bilyk. Plenty of people in the coalition party room know that this is nonsense. Well, our reliable renewables plan takes a different approach. We're cleaning up the mess in the energy system that was caused by a decade of denial and division by those opposite. We are providing the policy certainty that is necessary to get investment flowing after 22 failed energy policies—22 from across there.

But here's the thing: not one of those included nuclear. Here's another thing that former prime minister Turnbull said on Four Corners last night. He said:

… there was nobody, in any sort of senior responsible position during my time as Prime Minister who took nuclear power seriously, from an economic point of view.

It doesn't make economic sense, and it's why we are investing in firmed renewables. But Mr Dutton will serve up the most expensive form of energy— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Bilyk, a second supplementary?

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister explain how Labor's reliable renewables plan to put downward pressure on prices for households compares to alternative policy options, such as nuclear energy?

Jenny McAllister (NSW, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

The approach we take is to listen to the experts. Both AEMO and CSIRO say we need reliable renewables now, not expensive nuclear energy sometime in the 2040s. New independent analysis from IEEFA shows that nuclear energy will add an average of $1,200 a year to a four-person household bill. That's a lot of money—$1,200. The opposition love to talk about the American experience with nuclear energy. What about this first-person account from Anna Hamer on Four Corners last night? She said:

They were telling us everything was going to be OK with this plant, that it would be on time, and it would be on budget. It's over budget and we are paying for that …

Does that sound familiar? Families are already paying the price for their failed energy policies, and if this pipedream comes to fruition they will pay— (Time expired)