Question Time

Energy Security Target

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:53): A fine legislator, sir. The opposition can speculate all they like. We have acted—

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: Well, if the opposition know the answer, why are they asking the question? If you know the answer, why ask the question? I have laid out the reasons why we delayed the energy security target. It is the right and prudent thing to do. We still believe in a market mechanism. We would like the commonwealth government to get on board with the CET. If they can't, perhaps the states can go it alone—or another government, perhaps an incoming Shorten government.

Mr Duluk: Now you're dreaming.

The Hon. A. KOUTSANTONIS: Say it like you mean it. Put a bit of conviction behind there. How many Newspolls is it now? Twenty-six Newspolls in a row. But, of course, I know that the member for Davenport is the ultimate optimist. That's why he has grown the beard. The hair growth—it's back. The ultimate optimist, Mr Speaker.

I have to say, hopefully, we will get common sense nationally with energy policy. We are seeing not much leadership at a national level. We have a very good report from our Chief Scientist who was empowered by the COAG Energy Council, with a range of experts assisting him, to formulate a policy basis to have a more secure, reliable and sustainable grid to meet the requirements that the Prime Minister has signed us up to in Paris and, of course, the requirements that industry needs to lower prices.

The unfortunate thing is that that report is sitting on the Prime Minister's desk, not being acted on. They are paralysed with indecision, so the states are moving. What you are seeing is the Queensland government, the New South Wales government, the Victorian government and the South Australian government doing all they can to improve reliability to try to lower costs, but ultimately we need a price signal. The greatest evidence that a price signal will work is the example of the renewable energy target. It has been an overwhelming success.

It is a price signal into the market set by the commonwealth government, and the market has responded by building vast amounts of renewable energy which is cheaper, coming down the cost curve, and greener. All the commonwealth government needs to do to lower prices is to bring in the same price signal for other forms of generation, and all of a sudden the policy of scarcity that the private operators have in place of closing power stations in unscheduled ways to try to limit the number of electrons and power in the grid to increase the price of electricity will be reversed. But members opposite are paralysed by the Minerals Council and their love and addiction to coal.

Mr Pederick interjecting:

The SPEAKER: The member for Hammond I warn. The member for Morialta.