Electricity Generation

Mr VAN HOLST PELLEKAAN (Stuart) (15:09): My question is again for the Minister for Energy. Does the minister still intend to spend $360 million of taxpayers' money on a new gas-fired electricity generator, given that since his announcement industry has confirmed that it will build one at Torrens Island and two more are proposed near Mallala and Mannum?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (15:10): Replacement generation is not new generation. There will be a temporary time when the new generation at AGL will be excessive. I also point out to the shadow minister that there are a number of sites that have development preapproval for the construction of new generation, but those generators have not been built. As I said, again, there is market failure. There is market failure not because of ideology: there is market failure because there is no price signal.

Without a price signal, the market will not build new generation. If members scoff about what this price signal is, I will tell you what the price signal is right now. The only price signal in the Australian National Electricity Market right now is the commonwealth government's renewable energy target. It is the only market mechanism out there paying people to put generation in—the only one. What we are saying is that you need a market mechanism to incentivise new gas-fired generation. That is what we want. I know that members opposite have an ideological aversion to gas because they are now the party that blocks budgets and is anti-gas and socialises with the Greens—

An honourable member: Greens-inspired anti-gas policies.

The Hon. A. KOUTSANTONIS: Greens-inspired anti-gas policies—but that is what the country needs. So, yes, we are committed to Our Energy Plan. The costs of that new generator will be announced once the procurement is over, but we are spending over half a billion dollars—no more bandaid measures. What we are doing is attempting to fix the problem and, in the absence of an alternative policy, I think the opposition would be better off just to sit quietly and watch, or—here's an idea—release an alternative policy and let's debate it. First it was, 'Wait for Finkel.' Finkel came out and now it's, 'Wait for Josh.' We now have the Finkel inquiry and still no policy from members opposite. In the absence of any alternative policy, how about the opposition just sit quietly or release their policy and let's debate it? It's pretty simple.