MATTERS OF PUBLIC IMPORTANCE
Mr KENNEDY (Cook) (16:02): I remind the member for McEwen why these manufacturing jobs are going offshore right now. The average cost of the average manufacturing product is about 60 per cent energy. If the member for McEwen were listening this week, if he bothered to go down to the National Press Club, he would have heard the CEO of BlueScope Steel.
If he were listening two weeks ago, he would have heard the CEO of BHP say that Australia's energy costs today are two to three times those of comparable economies. Both these industry leaders are warning the Australian government that we are going to lose jobs. We're going to lose jobs, and that means we're going to lose workers.
We're going to lose GDP because of how your side is managing energy. You're deaf to it. You're deaf to actually killing this country through reckless energy policy that will see jobs fly offshore.
You call it a Future Made in Australia, but it's actually a future bailed out in Australia. Two days ago, the government announced a $600 million bailout of the Mount Isa smelter and Townsville refinery. So far, we've also seen a $2.4 billion bailout of Whyalla and a $135 million bailout of Nyrstar.
Why are we getting these bailouts? Ms Comer: To support Australian jobs! Mr KENNEDY: I'll take the interjection.
Why are we getting the bailouts? I just got hands like this—not an answer, just hands like this, because that is all the other side has. I'll answer for you.
The reason we're getting bailouts is the cost of energy. For those of you who don't understand how that works, Mount Isa copper refinery uses 50 per cent of the energy in North West Power Station—50 per cent of that whole power station goes to Mount Isa. Hold on!
I'll explain it to you. I can see you struggling with it but just hang with me. Energy has become so scarce that prices keep rising.
That's why it's going up. That's why energy has gone up 40 per cent under your watch. It's because it has become so scarce.
If it were abundant, prices would be dropping. Mr Leigh knows it. He's very good at economics.
He'll explain it to some of you afterwards, if you like. But because of these energy costs— An honourable member interjecting— Mr KENNEDY: I don't know what gender has to do with it. The DEPUTY SPEAKER ( Ms Claydon ): The member for McEwen has the call, on a point of order, I presume?
Mr Rob Mitchell: Yes. I think it highly inappropriate the term that was used then, and I ask him to withdraw the comment he made about the minister. Mr KENNEDY: I called him an expert.
I'm not going to withdraw that. I said he was an expert. The DEPUTY SPEAKER: Just a moment.
Hang on—I'm the one who adjudicates here. I'm not entirely sure if I heard the comment, but, if was anything offensive or unparliamentary, I would ask the member for Cook to withdraw it. Mr KENNEDY: Because of energy costs, Glencore was losing money.
What happens is: when energy costs go up and down, those who can't pay the cost stop buying energy. Glencore was about to become one of those businesses that could no longer afford to buy energy. We could have used that $600 million to create more energy, but what have we done?
We've used that $600 million to give to Glencore so it can buy more energy. So what's it going to do? Buying 50 per cent of that market, it's going to go and outbid all these other businesses, who actually also need the energy, and send those to the wall.
What could we do? We could actually try and solve the underlying problem. Wouldn't that be novel—to actually solve the underlying problem, the cost of energy.
We would lower energy. What we would do is not be relying— A government member interjecting— Mr KENNEDY: As to what the member for Swan said previously, it was a half-truth, and we have to be careful with half-truths because they sound right until you scratch the surface. Solar and wind—yes, they are cheap, but they produce energy when we don't need it.
If you knew about smelters—and maybe you do—you'd know they require energy 24/7, when the sun is not shining and the wind is not blowing. They require firmed energy. That's what they require.
And actually, unfortunately, that's not what's being provided. That's why those prices have gone up so much, and that's why you have business after business going to the wall. That's why you had the CEO of BlueScope Steel saying, just yesterday, 'Australian manufacturing is at a dangerous crossroad'—right now, under your watch, Member.
Is he wrong? He spoke about how energy costs will lead to an industrial decline. He said that last year in Australia we averaged $10.30 a gigajoule.
What was it in the US? Three bucks. What was it in Qatar?
Two dollars. If we keep on under these guys' reckless energy plan, we will drive this country off an economic cliff. (Time expired) The DEPUTY SPEAKER: I am just going to ask all members in this chamber to start directing your comments through me in the chair.
This idea of yelling out 'you' and 'they' and personalising this debate is completely inappropriate. I'm reminding everybody of this.