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HANSARD EXTRACT
Energy Efficiency Opportunities Bill 2005: Second Reading
2 November 2005

Mr HAYES (Werriwa) (11.15 a.m.)—I rise in support of the second reading amendment to the Energy Efficiency Opportunities Bill 2005, moved by the shadow minister for primary industries, resources and tourism. While I will not be voting against the passage of this bill, I believe it should go further. There is no doubt that we can all do more when it comes to energy efficiency. We are no longer dealing with a situation where there is any considerable doubt about the impact modern life has on our natural environment. We are no longer dealing with a situation where only businesses can do something to reduce their impact on the environment. It is about time that we all contributed to the need for greater energy efficiency throughout all sectors of the economy.

Recently I had the opportunity to attend the Macarthur Centre for Sustainable Living. They held an open day at Mount Annan. I was, fortunately, invited to attend. This open day presented an excellent opportunity for the community to gain a greater insight into what sustainable living is all about. It gave people the opportunity to see that by simply changing a few things in their own lives and lifestyles everyone can contribute to the general health of their environment. The centre has the stated aim of promoting ‘sustainability, social equity, cultural diversity and economic stability’. It does this by providing a number of interactive displays with working models to demonstrate just how everything could work and should work in a proactive society. I point this out simply to say that this is not pie in the sky. These are real working models, and the volunteers who operate the centre harbour an ongoing commitment to demonstrating just how simple it can be to modify our behaviour to help the environment and to reduce the impacts of our daily lives on our surrounds. I would particularly like to congratulate Del Cotter, a good friend of mine, and the other volunteers at the centre on their hard work and dedication to this cause.

They are not the only ones seeking to reduce the impact of modern society on the environment. The south-west of Sydney is subject to considerable housing growth at present. That does not seem likely to stop in the foreseeable future. It is not a bad thing. It certainly creates jobs in my electorate and brings people to what we consider to be a great part of the world. While many people have criticised developers in the region for their approach to construction and what might be commonly referred to as the ‘McMansions’, there are a number of responsible people out there putting in a real effort and a commitment to producing energy efficiency and environmental sensitivity in their developments. These developers have been able to design and build houses in areas to provide the best aspects of modern living whilst seeking to avoid and minimise the worst of it—that being the environmental excesses. It is an important point, and it is certainly a significant trend which is now occurring in our society.

A great number of people are disgusted with the government’s lack of action on environmental management, particularly in its refusal to ratify Kyoto. Consequently, it has fallen upon people to demand more action when it comes to sustainable living and sustainable development. The south-west of Sydney is fast becoming an example of how it can be done. It is fast becoming an example of how modern city living and sustainable living are not mutually exclusive concepts. Whether it be through the reticulation of grey water, the processing of waste water or energy efficient appliances, people are focusing on their environment and, as a result, energy efficiency.

Even one of the biggest road constructions ever undertaken has accommodated a growing desire for people to have alternative forms of transport to the family car. I am referring to the construction of the Westlink M7 Motorway. Throughout the entire length of the M7 Motorway there has now been constructed a cycle clearway. The designers have been able to find an innovative way for cyclists and motorists to share this significant transport link. This in itself is an interesting reflection of the views about sustainable living that influence the daily lives of residents of the south-west of Sydney.

While the Macarthur Centre for Sustainable Living, the approach of developers in the construction of more efficient residential dwellings and the fact that cyclists and motorists are able to coexist on a road such as the M7 might not be directly related to the bill, they nevertheless demonstrate that there is a strong community desire to reduce the impact of modern living on the natural environment. Disappointingly, though, the fact that the community demands it has not necessarily translated into the government insisting upon it. The community is leading the way when it comes to sustainability and yet the government is being, in my opinion, dragged along.

The bill we have before us today is no better example of this. The purpose of the bill is to establish mandatory energy efficiency opportunities assessments announced in the white paper entitled Securing Australia’s energy future, which was released in June 2004. It seeks to establish a program that will require large energy-using businesses to assess the potential to improve their energy efficiency and report publicly on the outcomes. That is a good start but, let us face it, it is not the most radical or far-reaching suite of activities to address the need for greater efficiency. Quite frankly, apart from the public reporting aspects of the requirements of large energy users, most people would expect large energy users to seek to reduce their consumption, in their capacity as responsible corporate citizens. Shareholders would expect managers of these large companies to examine energy consumption with a view to reducing costs. Many large organisations are now reporting annually on their triple bottom line. Some reporting issues may already be well and truly covered. Australian companies have been slow in the take-up of the cause of energy efficiency in comparison to those of other countries. There is a need for a greater effort on the part of businesses to up the ante when it comes to improving energy efficiency.

Business use of energy accounts for about 80 per cent of Australia’s primary energy consumption, and a relatively small number of businesses are responsible for the majority of energy use. It is estimated that 250 of the largest energy users account for approximately 60 per cent of all energy used by business. If government is willing to demand that these businesses become more efficient, what about those businesses, including those in other sectors of the economy, that use the remaining 40 per cent? These sectors are certainly not insignificant energy users; nor do they consume energy at an insignificant rate.

Recently I had the opportunity to view an interesting statistic, one which stuck in my mind given the amount of new residential developments occurring in my area. It is estimated that there is at least 70 per cent penetration of airconditioners in the new residential home market. When I think about the number of new homes that are being planned in my electorate in the south-west of Sydney alone over the coming years and about what that means in terms of the number of airconditioners and other household electrical items, I start to wonder what that means for the future of energy and energy consumption in Australia.

While other levels of government, through their planning requirements and approval processes, are making efforts to compel developers to create more energy efficient and environmentally sensitive dwellings, the federal government is simply not going far enough with this bill. To say that this bill stops short of what should be occurring as part of Australia’s ongoing economic and social development would be an understatement.

Australia is a nation of energy users, for all sorts of reasons. We are more inclined to jump into the car to go to the shops than to walk or catch public transport. The use of the car is becoming an increasingly discussed topic for many people, particularly in the south-west of Sydney. As I move through my electorate, I am continually asked about the level of petrol prices and the impact it is having on family budgets and, from the business perspective, about the impact it is now having on business. I have raised these issues in this place a number of times, and I will not use this time to again examine the government’s shortcomings on the issue of petrol prices. But the issue remains that the government and this bill seem to ignore or to have forgotten the whole concept of the issues associated with transport fuels. I can assure members opposite that the public certainly has not forgotten the issue of petrol prices.

While the bill requires large energy-using businesses to register with the Department of Industry, Tourism and Resources—they will have to submit a plan for assessment and there will be a public report on the assessments—it does not place the same compulsion on other sectors of the economy or the community. It is an important piece of legislation that stops short of addressing the broader agenda. It does not require action from the broader group other than the largest of our energy-using businesses, and it does not set a broader agenda to explore our options when it comes to sustainable energy supplies. While the opposition has taken up the challenge to examine broader energy issues, with some innovative thought when it comes to Australia’s ongoing energy needs, the government seems reluctant to meet this challenge. Energy efficiency—or, more correctly, energy inefficiency—affects all of us, and it deserves a proper public debate and should be the subject of very considered public policy.

The current issues of high petrol prices and high resource prices are partly the product of an increasingly competitive global energy market. The emerging economies of China and India are energy hungry, and the point about the additional demands that these economies place on the energy market needs to be made and considered, particularly in relation to future energy use. Supplies will not expand by themselves, and growth in the world’s energy demands seems unlikely to cease, yet the government is hoping that the issue will simply go away without causing it too much trouble and without it being required to address the issue. On the other hand, federal Labor is keen to promote new thinking when it comes to energy. On transport fuels, the Leader of the Opposition recently delivered a blueprint speech in which he set down an agenda for developing Australia’s fuel industry. Labor set out the need for Australia to diversify its fuel industry and become a more self-sufficient nation.

Labor set out an agenda in which it set forth some serious thinking on issues that government members would do well to examine for themselves. If they examined that agenda, they would at least see that it is an attempt at bold policy making. They might then understand that policy development is about dealing with more than just the immediate issues and they might realise that when it comes to energy we all have a part to play.

The continuous and certain supply of energy is necessary to sustain modern life and, while it is necessary to point the finger at big business and demand more from them, it is also time we all looked at our energy consumption and considered it in light of future needs. Energy efficiency should not simply be about shaming large users. Surely the government can come up with something a little better in terms of policy development than something that could be considered as a little tired and old. Why isn’t the government encouraging the use of building materials that use energy more efficiently? Why isn’t the government encouraging the use of more energy efficient building designs throughout Australia? Why isn’t the government acting to develop alternative fuels, rather than simply trying to address a quick fix option? While the extension of the use of ethanol in transport fuels is an important first step, more needs to be done to develop longer term solutions for the emerging shortage in transport fuels.

We have already seen what can happen when a government fails to take issues of resources sustainability seriously. While serious problems with water emerged clearly earlier this year, the water issue has not gone away. That situation provided a little insight into what might happen. Quite frankly, this government has ignored the issue of water resources security for years, and the drought brought home the serious nature of this issue. Of course, the drought also brought the issue home to the broader community, and people responded positively in the way they tempered their consumption of our diminishing water resources. As with recycling over a number of years, people realised the impacts on them but it took effort from government at all levels to encourage people within the community. The same applies with energy. The community will step up. All sectors of the economy, not just big business, will also step up if there is just a little leadership from the government on this issue.

The time is right for leadership on energy efficiency. We cannot delay it until there is an energy crisis. We cannot delay petrol pricing until transport fuel hits $5 a litre, for instance. Federal Labor is not seeking to amend the detail of this legislation. It is not seeking to amend the legislation simply for the sake of amendment. The amendments proposed by the opposition are fair, reasonable and driven by the desire to see serious efforts being made to address the issue of energy efficiency.

Australia has a culture of finding innovative solutions. We are innovative and we are certainly inventive. If we have the task of developing new sources of energy and developing new ways of improving our energy efficiencies, we will develop them. Some solid research into fuel cells to substitute and eventually replace current transport fuels is already under way. It is even occurring in our schools. There are people like Steve Zorbas, who has developed a teaching program which is being administered to schools in the south-west of Sydney. Under this program Mr Zorbas is encouraging students to build hydrogen cells to run model cars. That is a competitive project which is being embraced by a number of schools in my area. I say that the bill before us is a good start, but it does not go far enough. (Time expired)

 

 


 

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