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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-02-04 Daily Xml
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Bills

Statutes Amendment (National Energy Laws) (Omnibus) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 12 November 2020.)

The Hon. C.M. SCRIVEN (15:20): I indicate that I am the lead speaker for the opposition. This bill is another that relates to South Australia's important role as the lead legislator in this sphere. It is an omnibus bill that makes a series of changes to tidy up various national energy laws. It amends the National Electricity Law, the National Gas Law, the National Energy Retail Law and the Australian Energy—

Members interjecting:

The PRESIDENT: Order! I am not sure what cordial some people have been having at lunchtime, but we have too much noise in the chamber today and it would be nice to hear the speaker who is on, on this occasion, her feet.

The Hon. C.M. SCRIVEN: This amends the National Electricity Law, the National Gas Law, the National Energy Retail Law and the Australian Energy Market Commission Establishment Act of 2005. The COAG Energy Council agreed, so I am told, on 19 August 2019—so a bit of time ago—that there should be a legislative package to reduce some administrative burdens.

I am advised that this omnibus bill clarifies the meaning of a participating jurisdiction to address an ambiguity in the context of participation of non-interconnected jurisdictions to the National Energy Market (NEM). That includes the Northern Territory, which is a member of the NEM, and Western Australia, which is not a member of the NEM but a state nevertheless that participates in the Energy Council. It also amends the meaning of 'minister'. I am not quite sure what the disparity was, but apparently that needed to be clarified.

It removes a redundant reference to the limited merits review regime. Former energy minister and current Treasurer, the Hon. Josh Frydenberg, committed to removing the ability of a limited merits review from regulated assets. He believed that the process was flawed and that it enabled regulated assets to inflate their return and they were therefore gaming the process. The debate in the other place recorded that the commonwealth government acted unilaterally without the consent of the COAG Energy Council to remove the limited merits review, and this bill now recognises that change.

It also removes the current limitations on the National Gas Law that will enable any party to propose rule changes. I am advised that currently only the Victorian minister and the commonwealth minister can propose rule changes for the Victorian gas market, and given this is a national market the amendments will allow all jurisdictions to request rule changes of the Australian Energy Market Commission.

This also removes the requirement for advertising in newspapers. We are told the council believes this will be a more efficient and timely way of getting information out to the community by using source means other than newspapers. I think this is not a good move. I am sure this will save some money, and it might well be that they are thinking of the bureaucracy behind it, but that advertising money is crucial to many papers, in particular those in regional areas.

Regional publications rely on advertising revenue. In particular, it is important that regional newspapers have the level of support that is available through simply ensuring that communications from government are advertised in regional newspapers, and this is not the only area where the need to advertise is being removed.

The government will say that in fact they have spent more money on regional newspapers over the last 12 months, but of course that ignores the fact that there has been a need to advertise in regard to the COVID pandemic. It is important that we maintain advertising within regional newspapers, and I think this is a retrograde step. However, given that it is a national reform, the opposition will not oppose it, but we are not actually convinced that it is a good thing.

I am advised that every state has its own arbitration measures and that the current national energy law requires you to use those. I understand this bill is being amended to give these requirements and makes reference to certain provisions of the Commercial Arbitration Act of this jurisdiction. That will ensure that there is one set of rules across the entire jurisdiction for commercial arbitration.

There are a number of other reforms that do not appear to be particularly controversial. The bill removes some inconsistencies in the reading down provisions in the NEL, the National Gas Law, the National Energy Retail Law and the schedules to avoid commonwealth officers being subject to state legislation. This is what the opposition has been advised, and we take that information from the government and assume that it is appropriate. In line with the longstanding policy to support national reforms of this nature, Labor will be supporting this bill.

The Hon. R.I. LUCAS (Treasurer) (15:25): I thank the speaker for her indication of support for the bill, as well as thanking the other members who have, by way of separate indication, indicated that there is no opposition to the passage of the legislation. I look forward to its speedy passage through the committee stage.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. R.I. LUCAS (Treasurer) (15:28): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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