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Bowen hails energy bill support from ‘across the aisle’
Chris Bowen has confirmed the energy bill will be passed tomorrow with agreement from the Greens and David Pocock.
The energy minister said:
Today the government struck an arrangement of the parliament to ensure our passengers of legislation goes through the parliament tomorrow. This is the government of Australia acting in the national interest, working as a good government does, across the aisle, with people of good faith and goodwill, for a good outcome.
That is what this government sets out to do and it’s what we believe in. The legislation we deliver tomorrow will ensure the energy price rises we are seeing right around the world – and 90% of them come from coal and gas prices which are a result of Putin’s illegal war – have the sting taken out of the tail when it comes to Australians.
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Bowen is asked why, given the cap lasts 12 months and the war in Ukraine could run beyond that time, he is confident it will continue to keep prices at a lower rate.
Can we get an answer on how the market would deal with peak demand and who would get what gas?
He says going forward there will be a code which will govern people’s interactions.
The market would operate as it does today … what we’re after is reasonable pricing. People want to argue for the right price unreasonably and that’s a courageous argument to mount. Australian gas should be sold for reasonable and fair prices. While the cap is on, there will still be a market but we’re capping the prices … there are multiple options available to government.
Turning to David Pocock, Bowen is asked about his call for funding for a suburb-wide electrification pilot in Canberra to demonstrate “it can be done”.
Is that something he’s willing to consider, through the budget or separately?
Bowen says this is also something he will consider.
I recognise that in good faith, and I’ve had [the] most detailed conversations with the Greens. David has raised it with me. Pilots and that sort of thing are something we’ll consider as we develop a strategy.
Bowen is asked for more clarity on the consultation with the Greens that secured their support for the bill.
What does this say to gas companies who say the government is subsidising them to not use gas?
He reiterates he won’t be announcing the package today because he and the Greens are “methodical”.
We have begun work on the national energy performance strategy, the Greens and in very good faith suggested we commit to a package pre the lead up to the Budget, a process and a suggestion we accept. Inevitably there are some design elements and further work to go.
I mentioned the CFC, couple of weeks ago I announced with CFC they would provide concessional loans to people with substantial savings, this becomes more relevant as interest rates go up, a little while ago, you might not have had the same impact because interest rates were so low with the rising concessional rates have a big impact … that sort of thing we will consider but to be fair to us and the Greens we are a methodical government who works issues through carefully.
Energy bill isn’t ‘magic bullet’
Bowen is asked what his message is to Australians concerned why there will still be an increase in electricity prices of 23% despite the “unprecedented action”.
Can you not do more, with all those costs built into the system … can’t do better than that?
Bowen says Labor have never claimed this was a “magic bullet”:
We expected a 36% increase next year – the coal and gas cap reduces that substantially at 23%. Adding the rebates, you get down again. We have never claimed this is a magic bullet, and we will see prices go down an extent. I understand the question, I’m answering. Nobody can point to anywhere where we will say we are reducing energy prices magically in the next six months.
Australians understand the international pressures, there are some network costs … as well. The Australian energy regulator has briefed us on those. Overwhelmingly the pressure on Australian energy prices comes from the war in Ukraine.
Australian should rightly expect ‘fair price’ for gas – Bowen
Bowen is asked if the package could bring forward gas shortfalls in a year’s time that would otherwise be delayed. Why won’t that be the case?
He replies it’s a “carefully calibrated package in difficult times” and again turns to the war in Ukraine.
In some ways complicated, in some ways very simple, gas was being sold last year – 96% of the time – for less than $12. Companies were profitable and not complaining and everything was OK. Thanks to the war in Ukraine, the price of gas has skyrocketed.
This is not the fault of factories in my electorate or in Kingsford Smith or Gellibrand who rely on that form of energy, that is not their fault. The cost of production has gone up, I haven’t heard anywhere gas companies claim the cost of production hasn’t gone up, they can make that level of profit of sure … this is Australian gas. It is from Australian soil and Australians have a right to expect they will pay a fair price for that gas but not an exorbitant price. That is what we are delivering tomorro. I understand, as I said before, the job of chief executives and companies is to maximise profits it is our job to maximise the national interest.
Labor agreed to ‘substantial package’ in Greens talks – Bowen
A journalist asks Bowen why the appropriation of $1.5bn for household compensation won’t start until next year. He said:
We need appropriate authorisation from the states.
Asked how much he promised the Greens for their support, Bowen replies Labor’s had “a good conversation” with Bandt and the party and agreed to a “substantial package”.
We have agreed we will develop in the lead-up to the May budget a package to assist Australian households and businesses to deal with the move to electrification and support them on their journey. That will involve inevitably a role for the CFC and Arena [the Australian Renewable Energy Agency]. We will develop that work. That is important work, that will be an early dividend from the National Energy Board strategy we had already embarked upon.
‘We are fixing this’ – Bowen
The energy minister has thanked the “crossbench, people of goodwill and good faith” for supporting the government’s legislation in “unprecedented and difficult times”.
Bowen reiterates that the price rises are broadly due to the war in Ukraine.
This is decisive action. It is our job to act in the national interest. I understand it is the job of CEOs and companies to protect their profits, it is our job to protect the people in the country. These price rises were not brought about by the actions of Australian people or industry, they were brought about by Vladimir Putin and Australia being ill-prepared for such a crisis because of 10 years of policy dysfunction. We are fixing this, as we did last week with the capacity mechanism, as we are with all the other reforms.
This is what mature, sensible governments do, what the Albanese government is and will continue to work every day to deliver better outcomes to the Australian people. That’s exactly what the prime minister did last week, exactly what his government has done today and will do tomorrow.
Bowen hails energy bill support from ‘across the aisle’
Chris Bowen has confirmed the energy bill will be passed tomorrow with agreement from the Greens and David Pocock.
The energy minister said:
Today the government struck an arrangement of the parliament to ensure our passengers of legislation goes through the parliament tomorrow. This is the government of Australia acting in the national interest, working as a good government does, across the aisle, with people of good faith and goodwill, for a good outcome.
That is what this government sets out to do and it’s what we believe in. The legislation we deliver tomorrow will ensure the energy price rises we are seeing right around the world – and 90% of them come from coal and gas prices which are a result of Putin’s illegal war – have the sting taken out of the tail when it comes to Australians.
We’ve just heard from Greens leader Adam Bandt that his party has backed the government’s proposed energy laws in exchange for a package to help homes and businesses transition to electric.
Energy minister Chris Bowen is stepping up now to tell us a bit more about what that deal involves.
Daniel Hurst
Wong urges China to navigate differences with Australia ‘wisely’
The foreign affairs minister, Penny Wong, also repeated the government’s calls for China to remove sanctions and other trade restrictions on a range of Australian exports, including wine and barley.
Next week marks the 50th anniversary of diplomatic relations between Australia and China. Wong was asked when Australia could expect any concrete results from the resumption of ministerial and leader-level talks between the two countries in recent months. She replied:
Ultimately what Australia can do in its relationship with China is to do what we are doing. We will look to stabilise the relationship. We will be clear that we think it’s in both countries’ interests for those trade impediments to be removed. We will seek to have an engagement which enables Australia to navigate its differences wisely and we would encourage China to engage with us in a way that navigates the differences between our interests wisely.
Ultimately it’s a decision China will have to make to choose to remove those trade impediments. We continue to say we think it’s in their interests to do so.
We take stock ahead of the 50th anniversary here:
Daniel Hurst
Wong warns over strategic contest in Pacific
The foreign affairs minister, Penny Wong, has warned against overly simplistic views about strategic competition between great powers in the Pacific, saying the choice is about shaping “the type of region we want to live in and we want our children to live in”.
Wong made the comments during a visit to the Federated States of Micronesia (FSM), the second leg of a bipartisan Australian parliamentary delegation.
The president of FSM, David Panuelo, wrote a letter to the prime minister of Solomon Islands nine months ago warning against his proposed security deal with China. In that letter, Panuelo raised fears that Pacific island countries would be “at the epicentre of a future confrontation” between major powers.
Wong today praised Panuelo for his leadership within the Pacific. She then made some broader comments about competition between the US and China:
I think President Panuelo has demonstrated real leadership at this time, as has FSM.
When I’m south-east Asia or the Pacific, I make the point that … what we are actually engaged in is choosing what sort of region we want. It is not a choice between great powers for much of the region – and as the president said, this region is no stranger to great power competition … But the choice that is being made is what sort of region we want.
If you read the president’s letter and what else has been said, that is precisely what he and many others in the region are talking about: a region that is stable, a region in which rules are respected and in which sovereignty is preserved. It is that regional concept of sovereignty which goes to the point of security being provided by the Pacific family.
I know that journalists – some journalists – like to think in binaries. They [binaries] are easy. What we’re about, all of us, in our different ways is about thinking about and acting for the type of region we want to live in and we want our children to live in.
Panuelo told journalists he had previously been asked whether FSM felt “sandwiched between two superpowers”. He said his “direct, resounding answer” was no, because his countries was a friend to all and an enemy to none. At the same time, he said it was important to preserve the rules-based international order.
Panuelo said he valued the trusted partnership that his country had with Australia, which he said was “demonstrated in the leadership of the Albanese government”:
And I’m impressed with the way Australian leadership is presented and that is the bipartisan leadership of your nation coming here and showing that partnership endures, that the partnership is strong.
Bandt finished the press conference reiterating what he said throughout the week – that he doesn’t support any measures that see fossil fuel companies compensated.
The Greens will also not be supporting any money going to compensation for coal corporations – that will not be in the legislation. That is not being voted on. The Greens think that the greedy energy corporations should be compensating the people, not the other way around.
We will not be supporting any legislation that tries to give compensation to these coal corporations. I’ll be opposing that and arguing instead that money should be going direct to people, not to the coal corporations.
Bandt also said there were two conditions he wanted to raise:
The Greens want to see a freeze on power bills [for] two years. The Greens have made it clear to the government that we want to see more compensation owing to households, we want to see a freeze on power bills for the next two years. And as the government developed its assistance measures, over the next couple of months in the lead-up to February, the Greens continue to press for a two-year freeze on power bills.
If we have a windfall tax on gas and coal corporations, then we can afford that. We can freeze power bills for two years … Over the next couple of months, as power bills keep going up, the case for freezing power bills and putting a windfall tax on the giants will become stronger and the Greens will keep pushing it.
Labor’s energy bill set to pass tomorrow with Greens’ support
Josh Butler
The government’s energy bill for price caps on gas and power bill relief is set to pass the parliament tomorrow, after the Greens backed the plan in exchange for what they call a “significant” package to help homes and business transition from gas to electric.
Greens leader Adam Bandt made the announcement this afternoon, saying the agreement with the government would “help households and businesses to switch over from gas to cleaner and cheaper appliances”. It’s expected to be outlined in the 2023 budget.
The Greens’ support means the government has enough numbers in the Senate to pass the bill, after David Pocock and the Jacqui Lambie Network also backed the changes. It’s still unclear how the Coalition will vote.
Guardian Australia understands the government package will be aimed at low-income households, renters, people in apartments and public housing. It will look to address energy efficiency and cut power bills, including through updates to space heating, water heating, cooking and other household appliances or equipment.
The government will also further consult with science and energy agencies on how to better assist businesses make their own transitions.
Energy minister Chris Bowen is expected to further detail the announcement at 2.45pm in his own press conference.
Bandt went on to give more details about the package the Greens have secured.
The package … will be focused on low- and middle-income earners and people who live in public housing, renters, those who have been traditionally cut out from accessing the hundreds if not thousands of dollars a year in energy savings that come with switching over to electric.
Our package will help unlock hundreds if not thousands of dollars in savings to the people who need it most, and that means more money in people’s pockets to deal with the cost of living crisis.
Adam Bandt went on to explain the cost saving opportunities that switching to electric provides, saying for “too long” this has been expensive and inaccessible for many.
The estimated savings for switching from dirty and expensive gas appliances over to electric could be up to $1,900 a year alone. And full electrification of your home could be $3,500. But [for] too long, too many people have been barred from making that switch and enjoining those savings because there is an upfront cost associated with that.
Greens back government on energy legislation
Greens leader Adam Bandt has just stepped up and confirmed his party will support the energy legislation after brokering a deal with the government.
He said:
Energy corporations for too long have been punishing people in this country and power bills are going through the roof. One way of addressing that is helping people get out from under the greedy gas corporations by generating and saving more electricity in their own home … For a lot of people, like low and middle income earners, including small businesses as well, that is currently not affordable.
The Greens have secured a significant package that will help meet the costs households and businesses to switch over from dirty and expensive gas to cleaner and cheaper appliances, and that could save households hundreds – if not thousands – of dollars.
These will be savings that will last for a lifetime. The government has committed to developing a significant package of measures in next year’s budget, and they will work with the Greens in development of those measures.
Daniel Hurst
Micronesia president says Australia talks ‘very fruitful’
Australian politicians on a bipartisan trip to the Pacific have begun a joint press conference with the president of the Federated States of Micronesia (FSM), David Panuelo.
Speaking from the president’s office, Panuelo said it was a “very fruitful, productive meeting” that covered topics including maritime security, education programming and Pacific regionalism.
He described Australia as “a very trusted Pacific partner”.
The Australian foreign affairs minister, Penny Wong, said:
We are both members of the Pacific family, we are both committed to a region which is stable and secure. I know that the president has spoken previously about the importance of the stability of the Blue Pacific and we are partners in that. And we are very grateful for being described as a trusted partner – that means a lot to us.
As I said to the president and to the members of the cabinet [today] … we are a bipartisan delegation, a very senior bipartisan delegation, and we come because we want to demonstrate our commitment to this relationship – a relationship which has spanned a number of decades but is even more important now…
Regardless of who is in government, Australia will be a partner of FSM.
The Coalition’s foreign affairs spokesperson, Simon Birmingham, added:
We are delighted to be here representing all of the parties of government in Australia.
MPs post Pacific pix
The minister for international development and the Pacific, Pat Conroy, has shared some photos on social media today from his visit to the Federated States of Micronesia as part of a bipartisan Australian parliamentary delegation.
Shadow minister Michael McCormack has also been sharing photos on social media throughout the day.
As we reported earlier, Conroy will head home tonight – a day early – so he can return to Canberra for tomorrow’s energy debate in the lower house.
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