SENATE

Thursday, 13 October 2016 SENATE 61
Labor government bizarrely claims energy prices will fall, contrary to all other experiences, how will the minister
guarantee prices will not increase?
Senator BIRMINGHAM (South Australia—Minister for Education and Training) (14:30): I thank Senator
Roberts for his question, which at least, unlike questions from those opposite, is focused on policy and the
interests of the nation. Senator Roberts, we are aware of the stated intentions of the Queensland government and I
can tell you—through you, Mr President—that energy security of course is critical to all Australians and must be a
top priority for a successful economy. Queensland, we recognise as a government, is home to a range of
businesses, including major electricity users like the three LNG export plants and Boyne Smelters. These
businesses, and many others, are dependent on a secure, reliable and affordable energy supply to deliver vital
export dollars for Australia.
We cannot afford to let them suffer the same fate that is threatening some business and industry in my home
state of South Australia. We have had four South Australian large economic contributors who, by being without
power for 15 days, have cost the economy tens, if not hundreds, of millions of dollars. Those businesses, of
course, now face big repair efforts as a result, and it comes on top of other incidents that show the challenge of
high price and low reliability due to the unique circumstances in SA. Last Friday, Minister Frydenberg called a
meeting of the COAG Energy Council to discuss those events in SA. That meeting agreed that the prime
responsibility—the prime responsibility—of ministers is to ensure the security, reliability and affordability of the
energy system for all Australians. They commissioned an independent review, to be led by Dr Alan Finkel, our
Chief Scientist, to develop a blueprint for energy security with recommendations outlining the policy, legislative
and governance settings.
Queensland has not offered any evidence that its unrealistic 50 per cent target can be met without
compromising security. The Palaszczuk government has made the completely ridiculous claim that there will be
no closures of coal fired generators as a result of this policy, despite the huge loss of coal fired generation it
assumes will occur. Our department estimates the cost to be $27 billion. (Time expired)
The PRESIDENT: Senator Roberts, a supplementary question?
Senator ROBERTS (Queensland) (14:32): Can the minister produce for the Senate empirical evidence—that
is, measured data and physical observations—that categorically proves humans are affecting climate change and,
as such, these deindustrialisation renewable energy policies are required to stop the benefits of a naturally variable
climate?
Senator BIRMINGHAM (South Australia—Minister for Education and Training) (14:33): The Turnbull
government accepts the science of climate change. We take our advice from the Chief Scientist, the CSIRO, the
Bureau of Meteorology, the Department of the Environment and Energy as well as leading world scientific
organisations such as the World Meteorological Organization. According to the World Meteorological
Organization, global average temperatures have increased by almost one degree since the start of the industrial
revolution; 2015 was the warmest year on record for the globe. According to the CSIRO, Australia's climate has
also warmed by around one degree since 1910. Eight of the 10 years of Australia's warmest years on record have
occurred since 2002, according to the Bureau of Meteorology.
The reality of climate change is why we are a party to strong global action to reduce emissions. It is why we are
delivering the types of policies that are sensibly meeting and exceeding our emissions reduction targets, as I
outlined in response to Senator Di Natale before, but doing so in a way that is far more focused on the protection
also of jobs in our economy while reducing our emissions. (Time expired)
The PRESIDENT: Senator Roberts, a final supplementary question?
Senator ROBERTS (Queensland) (14:34): Will the government support an urgent Senate inquiry into the
Australian renewable energy market with terms of reference focusing on energy security, reliability and prices?
Senator BIRMINGHAM (South Australia—Minister for Education and Training) (14:34): As I outlined in
relation to the primary question, the government has taken action to respond to some of the challenges in the
energy market, particularly those posed by the increasing mix of renewable generation. It was at the COAG
Energy Council meeting on 7 October that an independent inquiry was established to develop a national reform
blueprint to maintain energy security and reliability in the national electricity market, under the leadership of Dr
Finkel. This review will draw together and build on the analysis and findings of a number of reports
commissioned by all Australian governments through the energy council, including reports by the Australian
Energy Market Operator and the Australian Energy Market Commission into future power system security and the
impact of carbon mitigation policies. It is the view of the government that any inquiry established prior to the
report of the Finkel review being completed would be a premature undertaking.
CHAMBER