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Coalition party room approves energy policy – politics live Coalition party room approves energy policy – politics live
(35 minutes later)
2.31am BST
02:31
You may remember the Greens leader Richard Di Natale has promised to stop the Queensland Adani mine by any means necessary, including standing in front of bulldozers, arrest threat be damned.
George Christensen, whose electorate relies heavily on mining jobs, had a different idea.
George Christensen wants coal mine protestors (including @RichardDiNatale) to be charged with terrorism and serve 1+ yrs in prison. pic.twitter.com/cYH18kx3M9
2.20am BST
02:20
The alert which went out with Malcolm Turnbull’s video named it the National Energy Guarantee. So it’s official. It’s the NEG
The PM has announced a national energy guarantee to deliver affordable and reliable electricity. WATCH it here first https://t.co/TifMa8k111
2.14am BST
02:14
Gareth Hutchens
Labor caucus met this morning.
It was the last full caucus meeting to be held before the results of the same sex marriage postal vote will be announced.
Given the timing, they resolved that in the event that a Yes vote prevails in the survey, Labor will push for the Turnbull government to pass Dean Smith’s private members’ bill as soon as possible.
They say Smith’s bill is consistent the key recommendations of the unanimous Senate committee report, and believe it will strike an “acceptable compromise” between achieving marriage equality and protecting religious freedoms.
They also noted Labor’s position on the conscience vote on same sex marriage (they will let party members vote as individuals) but said if a Yes vote is returned they will push for Smith’s bill to be passed in its current form.
2.14am BST
02:14
Progress at today's party room. The Clean Energy Target has been definitively dropped.
2.09am BST
02:09
Someone came prepared. Just minutes after the party room sided with the energy policy, the prime minister’s office have released a video on Facebook. It is all very uplifting. Affordability! Reliability! Security! All of the ity’s! Tellingly, the video does not say how much power bills will drop by, though.
2.02am BST
02:02
Katharine Murphy
A bit more detail about the NEG
I’ve happened across a briefing note prepared for the government by the Australian Energy Markets Commission which gives more detail about the energy overhaul.The briefing paper confirms two new obligations will be imposed on retailers “and the small number of large users of electricity who have registered as direct participants in the wholesale market.”
These obligations are for reliability support and emissions reduction. They would commence from 2020 and RET-financed projects would be grandfathered from that date.
“The obligations would require wholesale ‘market customers’ to enter into contracts for sufficient generation to meet a specified component of their electricity load with dispatchable generation,” the briefing paper says. “Concurrently, they would also be required to meet their electricity requirements with generation resources that met a specified emissions reduction goal.”
“This would mean that retailers would need to establish a portfolio of contracts or direct generation sources with existing and new dispatchable generation or verifiable demand response – to meet their reliability requirements – and with low emitting and renewables generation – to meet their emissions reduction obligations.”
“This will address issues with the RET by incentivising investment not just in a specific type of capacity but instead in a range of technologies that can both lower emissions and be dispatched to meet system requirements.”That’s all clear enough. The briefing paper argues electricity prices will come down for two reasons. It’s a lot more complicated than what I’m about to share, but let’s start with this observation.
“As discussed above, a major contributor to the current relatively high wholesale prices has been the undermining of the contract market by the volume of capacity financed outside the national electricity market via the RET and, policy uncertainty with respect to the mechanism that will be used to achieve Australia’s emission reduction target.”
So the AEMC says prices will come down once the market knows what the carbon policy will be, and once the RET (which is a system which generates certificates) trends out of the system.
Now, to the emissions reduction obligation.
“This sort of scheme could work in parallel with a separate emissions reduction obligation on retailers and large users,” the AEMC says.
“In addition to a requirement to hedge their load, there would be a further requirement for that energy consumption to meet an emissions intensity target.”“This target would need to be derived for the electricity sector from the government-set emissions reduction goal. That target would then translate into an obligation for a particular generation emissions profile that would need to be achieved across the sector.”
“The AEMC or Clean Energy Regulator could be tasked with translating the government’s goal into a sector-specific target. This obligation would work with the contract market in a similar way to the reliability obligation.”
“Retailers would be required to meet their load obligations from generation with a particular emissions intensity – for example, below a historical average level. This would incentivise retailers and large users to contract with renewable or low emissions generators, balancing the need for dispatchable capacity with their emissions intensity.”
“This would create additional incentives for investment in low emitting but firm generation capacity, allowing those generators, such as solar thermal, to attract a premium.”
I’m off to a briefing shortly.
As they say in the classics, more to come.
1.59am BST1.59am BST
01:5901:59
So now we wait to see the outcome of the Coalition signing off on the new energy policy. There have been some questions over whether or not it needs to be legislated. The short answer is, it doesn’t seem so, but we don’t have all the detail. If it is just a regulation change, they won’t need to put it through the parliament. But we’ll know more very soon.So now we wait to see the outcome of the Coalition signing off on the new energy policy. There have been some questions over whether or not it needs to be legislated. The short answer is, it doesn’t seem so, but we don’t have all the detail. If it is just a regulation change, they won’t need to put it through the parliament. But we’ll know more very soon.
1.44am BST1.44am BST
01:4401:44
So the Neg is alive. (Every time I hear that term I just think of negging and wonder if anyone ever googles these things before they name them and then I remember, no, they don’t.)So the Neg is alive. (Every time I hear that term I just think of negging and wonder if anyone ever googles these things before they name them and then I remember, no, they don’t.)
And James McGrath has left the Coalition party room early to appear on Sky with Laura Jayes, to say he can’t talk about party room.And James McGrath has left the Coalition party room early to appear on Sky with Laura Jayes, to say he can’t talk about party room.
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at 1.46am BSTat 1.46am BST
1.35am BST1.35am BST
01:3501:35
The Coalition party room has approved the energy policyThe Coalition party room has approved the energy policy
Press conference to comePress conference to come
1.32am BST1.32am BST
01:3201:32
Paul KarpPaul Karp
Pauline Hanson and Malcolm Roberts have held a press conference to claim credit for what they call a back-down in government policy. Pauline Hanson and Malcolm Roberts have held a media conference to claim credit for what they call a backdown in government policy.
“It’s RIP for the RET,” Roberts said, before mixing metaphors and warning renewable targets may be put “on steroids before being given the kiss of death”.“It’s RIP for the RET,” Roberts said, before mixing metaphors and warning renewable targets may be put “on steroids before being given the kiss of death”.
Roberts is worried that the $115 saving the government is claiming will occur may come after a further increase in prices. Roberts brandished a graph of energy prices increasing relative to inflation, labelled “Di Natale Hockey Stick”. Roberts is worried that the $115 saving the government is claiming will occur may come after a further increase in prices. Roberts brandished a graph of energy prices increasing relative to inflation, labelled “Di Natale hockey stick”.
When asked if One Nation caused the government to move on renewables and drop the clean energy target, Hanson replied: “I do take credit for that, we’ve been very vocal on this from the very beginning.”Roberts attacked proposals for demand management, which he summarised as “where the producer of the product pays people not to take it’s product - this is nuts”. “We’re seeing an energy market that is really an energy racket, the energy market is completely destroyed.” When asked if One Nation caused the government to move on renewables and drop the clean energy target, Hanson replied: “I do take credit for that, we’ve been very vocal on this from the very beginning.”
Roberts said the government’s new policy was “an atrocious policy dressed up with lies around it”. When it was pointed out that One Nation was claiming credit for it, Roberts clarified “I took credit for the language” - perhaps a reference to his earlier claim that “coal” is no longer a dirty word. Roberts attacked proposals for demand management, which he summarised as “where the producer of the product pays people not to take its product – this is nuts”. “We’re seeing an energy market that is really an energy racket, the energy market is completely destroyed.”
When asked for their solution - Roberts says abolish all subsidies for renewables including the RET and to let the states take responsibility for their own energy needs, breaking apart the east coast electricity. Roberts said the government’s new policy was “an atrocious policy dressed up with lies around it”. When it was pointed out that One Nation was claiming credit for it, Roberts clarified “I took credit for the language” – perhaps a reference to his earlier claim that “coal” is no longer a dirty word.
When asked for their solution – Roberts said abolish all subsidies for renewables including the RET and to let the states take responsibility for their own energy needs, breaking apart the east coast electricity market.
“It will generate investment in the cheapest forms of energy, which is hydro and coal,” he said, before adding nuclear would also provide synchronous energy and One Nation was “open to considering it”.“It will generate investment in the cheapest forms of energy, which is hydro and coal,” he said, before adding nuclear would also provide synchronous energy and One Nation was “open to considering it”.
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at 2.09am BST
1.19am BST1.19am BST
01:1901:19
In between the party room meetings, One Nation senator Malcolm Roberts has been spreading his gems of wisdom about the Coalition’s energy policy among the Canberra press gallery.In between the party room meetings, One Nation senator Malcolm Roberts has been spreading his gems of wisdom about the Coalition’s energy policy among the Canberra press gallery.
Despite his leader claiming the credit; Despite his leader claiming the credit ...
Good to see the Gov plans to scrap RET & CET like One Nation has been suggesting. About time they joined us in the 21st century. -PH #auspolGood to see the Gov plans to scrap RET & CET like One Nation has been suggesting. About time they joined us in the 21st century. -PH #auspol
Roberts is not a fan. ... Roberts is not a fan.
Now they are not telling everyone that they are actually putting the RET on steroids before they give it the kiss of death. So we are going to have an increase in power prices even more dramatic than we were expecting and then they are going to kill it off. So the government tells us they are going to cut power prices by $115 a year. What they are not telling us is how much power prices will increase until that occurs. So we will see $115 less than what it will be. But what it will be is frightening.”Now they are not telling everyone that they are actually putting the RET on steroids before they give it the kiss of death. So we are going to have an increase in power prices even more dramatic than we were expecting and then they are going to kill it off. So the government tells us they are going to cut power prices by $115 a year. What they are not telling us is how much power prices will increase until that occurs. So we will see $115 less than what it will be. But what it will be is frightening.”
It must have looked good when he practiced it in the mirror, so Roberts then presents a letter from Malcolm Turnbull, which was written after he sent him “a copy of the Moran report, which was a critique of the Finkel report.” You may have missed the Moran report, but don’t worry, it was published on this climate sceptics blog. It must have looked good when he practised it in the mirror, so Roberts then presents a letter from Malcolm Turnbull, which was written after he sent him “a copy of the Moran report, which was a critique of the Finkel report”. You may have missed the Moran report, but don’t worry, it was published on this climate sceptics blog.
The Finkel report is a highly destructive blueprint for this country and the Moran report tears it to shreds, absolutely destroys it. The Finkel report is based on lies. And the Turnbull government is now continuing to tells lies about climate and it raises more questions, how the hell are they are going to comply with the Paris Accord without renewables, so what are they going to do? They need to come clean, we have got three words into the vocabulary of this country. We have affordability into the energy debate, due to our work, reliability into the energy debate due to our work, we have security into the energy debate, due to our work and we’re going to introduce a fourth word–truth. Because I have been pursuing the CSIRO for the last 12 months and they have not got what they claim they had. And I’ll be talking more about that in the next few weeks.” The Finkel report is a highly destructive blueprint for this country and the Moran report tears it to shreds, absolutely destroys it. The Finkel report is based on lies. And the Turnbull government is now continuing to tells lies about climate and it raises more questions, how the hell are they are going to comply with the Paris accord without renewables, so what are they going to do? They need to come clean, we have got three words into the vocabulary of this country. We have affordability into the energy debate, due to our work, reliability into the energy debate due to our work, we have security into the energy debate, due to our work and we’re going to introduce a fourth word – truth. Because I have been pursuing the CSIRO for the last 12 months and they have not got what they claim they had. And I’ll be talking more about that in the next few weeks.”
So there you have it. The master of empirical evidence, who apparently couldn’t work out an email address, or fully understand his citizenship history has the climate debate sorted. Obviously there is no need to continue with this today, we can all go home.So there you have it. The master of empirical evidence, who apparently couldn’t work out an email address, or fully understand his citizenship history has the climate debate sorted. Obviously there is no need to continue with this today, we can all go home.
UpdatedUpdated
at 1.21am BST at 2.02am BST
1.06am BST1.06am BST
01:0601:06
The Greens have completed their party room meeting and it went as you would expect.The Greens have completed their party room meeting and it went as you would expect.
The party room is not a fan of the energy policy, (shocking, I know), so it will be looking to Coag and the states to tell the government to go jump and go it alone when it comes to renewables.The party room is not a fan of the energy policy, (shocking, I know), so it will be looking to Coag and the states to tell the government to go jump and go it alone when it comes to renewables.
They want to suspend standing orders in the Senate and call for a debate of the energy policy and hope Labor will join them.They want to suspend standing orders in the Senate and call for a debate of the energy policy and hope Labor will join them.
As for other issues, the Greens are standing against the government’s housing affordability plan, which would allow homebuyers to dip into their super and reminded everyone the government has until close of business tomorrow to bring its citizenship changes – the ones which include the stricter English language test etc – up for debate.As for other issues, the Greens are standing against the government’s housing affordability plan, which would allow homebuyers to dip into their super and reminded everyone the government has until close of business tomorrow to bring its citizenship changes – the ones which include the stricter English language test etc – up for debate.
UpdatedUpdated
at 1.57am BSTat 1.57am BST
12.56am BST12.56am BST
00:5600:56
The Labor party is pleased the government went with James Shipton for the head of Asic and not John O’Sullivan.The Labor party is pleased the government went with James Shipton for the head of Asic and not John O’Sullivan.
Chris Bowen said Shipton has their support as well.Chris Bowen said Shipton has their support as well.
I want to congratulate and welcome the appointment of James Shipton as the new chair of Asic. This is an appropriate appointment. Mr Shipton has a good mix of corporate experience and regulatory experience. His experience as a regulator in Hong Kong will come in as an asset for him in his role in the new chair of Asic. As well, he’s been a thought leader when it comes to regulation in academia in the last few years, and of course, he’ll draw on his corporate experience. This is an appropriate and good appointment which Labor welcomes. The chair of Asic is an important position. It is appropriate that it receives bipartisan support. I give that bipartisan support to Mr Shipton and wish him well in his stewardship of Asic and look forward to working with him in the future.”I want to congratulate and welcome the appointment of James Shipton as the new chair of Asic. This is an appropriate appointment. Mr Shipton has a good mix of corporate experience and regulatory experience. His experience as a regulator in Hong Kong will come in as an asset for him in his role in the new chair of Asic. As well, he’s been a thought leader when it comes to regulation in academia in the last few years, and of course, he’ll draw on his corporate experience. This is an appropriate and good appointment which Labor welcomes. The chair of Asic is an important position. It is appropriate that it receives bipartisan support. I give that bipartisan support to Mr Shipton and wish him well in his stewardship of Asic and look forward to working with him in the future.”
As for O’Sullivan, Bowen read from an email (from Godwin Grech to O’Sullivan) he once sent.As for O’Sullivan, Bowen read from an email (from Godwin Grech to O’Sullivan) he once sent.
“RE fees – what I have in mind is that once Rudd and his hacks sign off on Ford Credit – you and I can change the contract to reflect your preferred fee arrangement and push that through quickly next week. I will not be running it past Henry – that is Ken Henry, secretary of Treasury – and co. Godwin.”“RE fees – what I have in mind is that once Rudd and his hacks sign off on Ford Credit – you and I can change the contract to reflect your preferred fee arrangement and push that through quickly next week. I will not be running it past Henry – that is Ken Henry, secretary of Treasury – and co. Godwin.”
That was at 10.02am on the 19th of March 2009. At 10.24am on the same day Mr O’Sullivan replied “Thanks Godwin, sounds sensible.”That was at 10.02am on the 19th of March 2009. At 10.24am on the same day Mr O’Sullivan replied “Thanks Godwin, sounds sensible.”
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at 1.28am BSTat 1.28am BST
12.40am BST12.40am BST
00:4000:40
“Optimism” is one of the words a couple of Coalition sources have used in relation to the party room briefing.“Optimism” is one of the words a couple of Coalition sources have used in relation to the party room briefing.
Then there is also this:Then there is also this:
Abbott In Emissions Reduction Non-shock Shock #auspol https://t.co/HzhQvol85mAbbott In Emissions Reduction Non-shock Shock #auspol https://t.co/HzhQvol85m
UpdatedUpdated
at 12.51am BSTat 12.51am BST
12.21am BST12.21am BST
00:2100:21
Things appear to be going well in the Coalition party room ...Things appear to be going well in the Coalition party room ...
Energy Minister @JoshFrydenberg has been applauded by party room as he explained the Govt energy plan @SkyNewsAustEnergy Minister @JoshFrydenberg has been applauded by party room as he explained the Govt energy plan @SkyNewsAust
UpdatedUpdated
at 12.51am BSTat 12.51am BST
12.13am BST
00:13
Party room meetings are occurring as we speak. The Coalition will be selling its energy policy to its backbench. Craig Kelly has indicated he supports the policy, at least broadly, which is part of the battle won. But let’s see what happens beyond those instant reactions.
Labor is formulating its response, but so far has been pretty clear in rejecting the government’s plan. The theme which appears to be emerging is from Mark Butler’s media conference this morning:
What the announcements that are set for this morning do make very clear is that Malcolm Turnbull’s capitulation to Tony Abbott’s radical rightwing agenda for Australia is now utterly complete.
The Greens are also meeting this morning and have drawn a conclusion along the same lines.
One Nation will hold a media conference a little later, with Malcolm Roberts and Pauline Hanson, but Hanson has already claimed credit for the policy.
Who else is excited for question time?!
Updated
at 12.51am BST
12.01am BST
00:01
Speaking of neutron stars colliding, the issue of Tony Abbott is not going away any time soon.
Paul Karp tells us the deputy Liberal leader, Julie Bishop, was also asked on Radio National about why Tony Abbott has left open the option of being drafted back to the leadership.
Bishop replied:
Not one person has raised that possibility with me, not one of my colleagues has raised that as an option or something they are considering ... Not one person has raised with me any suggestion that there would be a change of leader, there is support forMalcolm Turnbull.
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12.00am BST
00:00
The chief scientist, Alan Finkel, was coincidentally at a function at Old Parliament House this morning, to discuss the neutron stars collision. I think it is safe to say he was a little surprised at the media attention he received today.
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11.42pm BST
23:42
If this energy policy is called the national energy guarantee, or the NEG, it might be timely to remind you of this, from the prime minister, just yesterday. Doesn’t that feel like a lifetime ago.
That’s the task of government. To get beyond the slogans, and the three-letter acronyms that honourable members opposite don’t understand, and to get a policy that works and have the one that works best. That is our commitment. Engineering and economics, not three-letter acronyms and terms that honourable members opposite and laugh about but do not understand.
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at 12.48am BST
11.29pm BST
23:29
But Labor is not happy with what it is hearing. The opposition energy spokesman, Mark Butler, who was forced to walk back from his Sunday comments (essentially that dumping the CET was a deal breaker for Labor) yesterday, says today the government has turned its back on the recommendations of the chief scientist.
“We will wait and see what the detail is. All we have had leaked out to newspapers this morning is a clear suggestion that the government will restrict the growth of renewable energy to as little as 28% and maybe as much as something in the mid-30% range over three decades. There is no way Australia is going to be able to discharge its commitments to the medium term to 2030 around emissions reduction but also to get to a position of net zero emissions by the middle of the century. It will destroy investment in renewable energy and destroy the thousands of jobs that industry currently employs.
... Labor’s position is clear. Australia should have at least 50% of its electricity delivered by renewable energy by 2030. We have said there are a range of mechanisms that can deliver that outcome. Initially we were in support of an emissions intensity scheme, as was the government until September last year. It was a position supported by all of the electricity agencies but vetoed by Tony Abbott in December last year. We have said a 50% renewable energy position can be delivered by a clean energy target, a consensus position up until last night when Malcolm Turnbull turned his back on his own chief scientist in favour of Tony Abbott’s veto.
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at 12.48am BST
11.23pm BST
23:23
The government has managed to please some with its energy policy.
Good to see the Gov plans to scrap RET & CET like One Nation has been suggesting. About time they joined us in the 21st century. -PH #auspol
11.22pm BST
23:22
Don’t forget the Essential poll came out today.
Katharine Murphy has written a comprehensive report on the latest findings, but just on the former prime minister:
With Tony Abbott spending the past several months front running the government’s energy debate, and leading the opposition to the Finkel recommendation, 42% think the former prime minister should resign from parliament (down 1% from April), while 30% think he should stay in parliament in some capacity (down 2%).
Liberal/National voters were more likely to think Tony Abbott should stay in parliament (38%) than Labor voters (27%) and Greens voters (17%).
Labor is still in front in the new poll, leading the Coalition on the two-party preferred measure 52% to 48%, but that is an improvement on the government’s fortunes from a week ago, where Labor led 54% to 46%.
11.15pm BST
23:15
James Shipton has been announced as the new chief of the Australian Securities and Investments Commission (ASIC) by Kelly O’Dwyer.
From O’Dwyer’s statement:
He is currently the executive director of the program on international financial systems at Harvard law school. From 2013 to 2016 he was the executive director, intermediaries supervision and licensing division at the Hong Kong Securities and Futures Commission. Prior to that he had extensive experience in various roles in investment banking in Asia and Europe and commenced his professional career as a solicitor in Australia.
I look forward to Mr Shipton making a significant contribution to the important work of ASIC in promoting confidence in Australia’s financial system and protecting consumer interests as the incoming Chair.
I would also like to express my appreciation to Mr Greg Medcraft for his commitment over the past years to ASIC both as the chair and as a member.
Mr Medcraft has overseen significant changes in ASIC’s role during his tenure, including reforms to improve the quality of financial advice and financial literacy, and the establishment of a national business names register.
Mr Peter Kell, the current deputy chair, will be the acting chair from the time Mr Medcraft’s term ends on 12 November 2017 to when Mr Shipton commences in February.
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at 12.17am BST
11.10pm BST
23:10
Barnaby Joyce is due to hand down an update on the Northern Australia white paper (remember that? It was to turn the north into an “economic powerhouse”?) and Labor’s Jason Clare has had some thoughts:
Two-and-a-half years ago they announced the Northern Australia Infrastructure Facility. Two-and-a-half years on bugger all has happened. No money has been allocated to infrastructure projects and no jobs have been created. It’s just a great example of a government which talks a big game and doesn’t deliver. Today when Barnaby Joyce comes into the Parliament to give an update to the Australian people on their northern Australia plans he needs to explain what the hold-up is.
Joyce took over the portfolio when Matt Canavan stepped down from the ministry during the citizenship kerfuffle.
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at 12.14am BST
11.06pm BST
23:06
The Greens leader, Richard Di Natale, was not mincing words in his response.
This represents the complete capitulation of Malcolm Turnbull’s leadership. This is a man who said he wasn’t going to lead a party [that wasn’t] as committed to climate change as he was and he is now leading the most pro-coal, anti-renewable government in the nation’s history. This is a complete failure of leadership. Malcolm Turnbull has shown himself to be a hollow and cowardly prime minister. When he had an opportunity to stand up and lead, and take a stand against those dinosaurs inside his own backbench, instead he has gone to water and he is now going against where the rest of the world is going on this. This is a disgraceful capitulation from a weak and hollow prime minister.
Di Natale said “Malcolm Turnbull is prime minister in name only” and was being held hostage by the right wing of his party.
Malcolm Turnbull has done what Donald Trump has done, he just hasn’t done it as extravagantly. He has effectively pulled out of the Paris agreement. We can’t achieve those Paris reduction targets based on this plan.
Updated
at 12.13am BST