JEROME LAXALE:
I’m Jerome Laxale, the Member for Bennelong. It’s so great to welcome the Minister for Housing and the Minister for Climate Change and Energy, the Assistant Minister Jenny McAllister. It’s so great to be here at a small business in Bennelong. These energy efficiency upgrades will make a difference. I’ve run a small business my whole life. And I know that each and every day you’re looking to make savings, you’re looking to reinvest in the business. To get a better outcome for the bottom line, but also for your customers. Investing in these energy efficiency upgrades will help small businesses right across the country. Round 2 being announced today builds on the back of Round 1, which was announced last year. And we had a great example, in Bennelong where a supermarket used these energy efficiency grants to install controllers on their refrigerants, which has reduced their power prices by 20 per cent to 30 per cent. By the government providing these grants, it gives small businesses incentives, to do the homework, and to invest in upgrades to their energy efficiency, reduces emissions and reduces power bills. This is exactly what this Albanese government was elected to deliver. And it’s so great that we have another business here in Bennelong that has applied, that has been successful. They’ll see the power prices go down; they’ll see their emissions go down – all from this incentive by the federal government. It gives me great pleasure to invite Minister McAllister, to talk about it a lot more. It’s a very exciting program and one that I’m proud to have been an advocate for.
SENATOR MCALLISTER:
Thanks very much, Jerome, for your warm welcome and for your tireless advocacy for the people of Bennelong. It’s a pleasure to be here with my friend and colleague, Minister Collins. And today to announce the second round of the Energy Efficiency Grants for Small and Medium Enterprises. Now, we know that over the last 10 years, electricity has literally been leaking out the doors and windows of Australian homes and businesses because too little government attention was paid to the opportunities afforded by energy efficiency. Small improvements to businesses can make a big difference in an ongoing way to the energy demands. Now here at The Governor in Jerome’s electorate of Bennelong, they understand that changes to the energy performance of this operation will help them with their overall business performance. They’ve already made the decision to put solar on the roof, but in addition to that, they are now seeking to install monitoring equipment on the refrigeration, switch over their hot water from gas to a much more efficient electric system, and do an overall energy audit, so that can also understand the future opportunities to improvements right here. Our grants will allow these kinds of activities to happen right across the country. So from Darwin down to Hobart, Sydney to Perth, we will assist more than 1,700 Australian small and medium sized businesses to improve their energy performance. Lighting, refrigeration, heating and cooling, all of these things can make a lasting and enduring difference to the bills paid by small businesses and help these businesses to thrive. There’s a lot of work to do. This area of policy was characterised by a decade of neglect. But we are up for this task, and it is my very great pleasure to announce these grants today. I might introduce the Small Business Minister, Minister Collins, to make a few additional remarks, about the work that we are doing [inaudible] to support the small business sector.
JULIE COLLINS:
Thanks, Jenny. It’s terrific to be here at The Governor Hotel, and I thank them for having us today and for their success in this energy efficiency grant. It’s also terrific, obviously, to be with my friend and local Member, Jerome. It’s terrific to visit Jerome’s electorate. And again, as my colleague said, he’s a terrific advocate for people in Bennelong here in New South Wales. And of course, my other friend and colleague, Minister McAllister, who’s doing a terrific job when it comes to climate and energy, and particularly in terms of helping small businesses improve their energy efficiency and put downward pressure on their energy bills. That is what we have been doing as a government supporting small businesses with targeted support in ways to support small businesses, but also put downward pressure on inflation. These grants are a prime example of the government supporting and investing with small businesses in their business so that they get the returns not just today, but over the long term. As we’ve heard from Minister McAllister and indeed from the local member, Jerome, these grants are incredibly popular because what they do is they get small businesses to think about their energy efficiency, and they’ve put downward pressure on their energy bills over the long term. They are, of course, from our government, supporting small businesses, as we’ve heard, the second round over $40 million going to 1,700 small businesses and medium‑sized enterprises across the country. We, of course, are supporting small businesses in other ways. What we saw in our last budget was our Small Business Budget Statement, which has got over $640 million in targeted support for small businesses.
Because we know while many small businesses are thriving, some small businesses are doing it tough, and we’re providing that targeted support. For things like our direct energy bill relief, up to $325 for around 1 million small businesses across the country. Our instant asset write‑off $20,000, for each asset for small businesses has been extended for this financial year as well as last. We have of course extended important programs to provide mental health and wellbeing for small businesses. To make sure that if they want to expand and grow their business or if they’re having some issues with their small businesses, they can get that targeted personal support for their business through financial counselling and advice. We, of course, are also leveling the playing field. We have got through the parliament legislation in relation to improving payment times for small businesses, again, to help small businesses with their cash flow. We’re reforming the franchising system to make sure that we have as a level playing field as we can get so that small businesses can compete with big businesses. We want to stay small businesses thrive in Australia, and that is what our small business target of support is all about. Labor is the party of supporting small businesses, and I look forward to continuing to work with colleagues like Minister McAllister to ensure that small businesses thrive right across the country.
JOURNALIST:
AEMO has flagged drops in energy supply for renewables throughout winter, with more gas needed to fill the gap. What is the plan if renewable output doesn’t improve?
COLLINS:
Look what we know is that renewables are the cheapest form of energy. AEMO supports what Labor is doing in terms of more renewables into the grid. What we also know is, is that the Liberal and National plan for nuclear will be too slow and too expensive when it comes to energy in Australia. What we’re doing here today is supporting small businesses to put downward pressure on their energy and to help them with their energy bills. And I’m happy to hand over to Minister McAllister to talk more about energy more generally. What I would say is that the alternative plan coming from Peter Dutton to go nuclear is too slow and too expensive, and our plan is being supported by AEMO to get more renewables into the system. Can I say, as a proud Tasmanian, we have a lot of renewables in Tasmania. We’ve been successfully net zero now for 8 out of the 9 last years. So it can be done.
MCALLISTER:
Thanks very much, Julie. Today we’ve received 2 reports from the market bodies indicating that renewables remain the lowest cost form of generation and are making an increasingly important contribution to the grid. Now, the reports also confirm the information that has been provided to successive governments over a very long period of time now – which is that more investment is required in generation capability to replace the aging coal‑fired power fleet that is coming to the end of its life.
Unfortunately, during the period of the last government under the Liberals, these warnings were ignored. Twenty-four coal fired power stations announced or brought forward their closure dates, and the response to this was zero from the previous government. We are acting and taking steps now to bring on the new, reliable renewables that are necessary to develop – to deliver affordable energy for Australians. Now Peter Dutton’s plan is in no way responsive to the information that’s in front of us.
Mr Dutton’s plan, apparently, is to have a conversation over the next term about nuclear with some communities, and then to wait until 2040 to deliver new generation capacity. We can’t wait that long. We need to get on with the job delivering the technologies that the experts tell us, are necessary to deliver an affordable and reliable power grid.
JOURNALIST:
The government has approved gas exploration licenses around Victoria and Tassie. How quickly do we need to get gas – that gas into the grid?
MCALLISTER:
We understand that the future of the Australian electricity market will be built on a range of technologies: renewables, like wind, solar, batteries, pumped hydro and of course, gas for those occasions when we need it as a backup. And what AEMO tells us is that looking to the future, we will see gas used less and less frequently, but when it’s used, it will be really important. It’s on that basis that we built the Future Gas Strategy. It’s important for Australians to think about where we are going to get the gas that we will need out ‘til 2050, but at the same time we retain focus on our core purpose, which is building out the new generation capability that is necessary to replace the aging coal‑fired generation. This is a task that has been completely ignored by the previous government, and it appears that in opposition they have not learned the lessons from the past. The current plan is to do something, perhaps in 2040. What happens between now and then is a complete mystery. And it’s time for Mr Dutton to front up and explain to Australians what the plan is between now and 2040, to meet the energy demands that the Australian economy requires.