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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-07-18 Daily Xml
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STATUTES AMENDMENT (ELECTRICITY, GAS, WATER AND SEWERAGE ACCOUNTS) BILL

Introduction and First Reading

The Hon. D.G.E. HOOD (17:45): Obtained leave and introduced a bill for an act to amend the Electricity Act 1996, the Gas Act 1997 and the Water Industry Act 2012. Read a first time.

Second Reading

The Hon. D.G.E. HOOD (17:46): I move:

That this bill be now read a second time.

The Statutes Amendment (Electricity, Gas, Water and Sewerage Accounts) Amendment Bill 2012 was introduced to ensure fair and proper disclosure of the component of utility bills that are for the federal carbon tax—that is, its component of the bill. The carbon tax has been very much in the media recently and it is a discussion point in public conversation. Whilst there are views for and against the tax, I hope that we can all agree that it is important to have a sensible basis for debate on this issue.

An honourable member interjecting:

The Hon. D.G.E. HOOD: It is spreading, that is right. If the true effect of the carbon tax is shrouded in mystery, fair debate is much more difficult. It is my view, therefore, that it is extremely important that we present the true facts to people on their bills so that they know exactly what it is costing them. Insofar as the purpose of the tax is to encourage people to use less energy in their homes and to find more energy efficient ways of living, then disclosure of the amount that consumers are paying for the tax will actually help to achieve that purpose. It actually works in favour of those who propagate this tax.

Much of what I have said applies to the general effect of the carbon tax on all goods and services but one very significant effect of the carbon tax will be to increase charges for electricity in particular, as we know, as it will to gas and water for other reasons. As we all know, the increases in the cost of these essential services over the last few years have caused severe hardship to many in our community, especially those on low incomes and pensions.

Family First takes the view that consumers of electricity, gas and water—that is all of us essentially—should be given information about the effect that the carbon tax has on their utility bills. We put the cost of the Save the River Murray levy on our bills, for example, so why can't we put what the carbon tax costs?

It has been suggested to me that this proposal is simply going to add to the cost of retailing these services to consumers and it will in itself add to the cost of bills. I do not accept that argument. I see that according to The Advertiser on 15 June this year the Essential Services Commission stated that for typical consumers the carbon tax component for electricity bills will be 4.6 per cent and for gas bills it will be 4.5 per cent. However, I note that the commonwealth government claimed something more in the order of 9 per cent will be the national average.

Computer software can be easily modified to calculate and disclose such matters as the amount of the carbon tax on the bills sent to consumers and to make it plain and easy to read on the bill. I do not accept that the cost of this disclosure will be significant at all; indeed, I have spoken to experts in the field who assure me it can be done in a matter of moments with the appropriate software.

As to the terms of the bills, the carbon tax is referred to as 'charges attributable to measure under the Clean Energy Act 2011 and related Acts of the Commonwealth to put a price on greenhouse gas emissions.' There are three operative provisions that require entities authorised to sell electricity, gas and water to include details of the approximate amount of the charges attributable to the carbon tax. Note that only the approximate amount is required. A penalty is also provided for failing to do so. I commend this bill requiring disclosure of information to consumers who would want to know, and who in my view are entitled to know, exactly what it is costing them on every bill they receive.

Debate adjourned on motion of Hon. Carmel Zollo.

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