Ms NOREEN HAY (Wollongong) [12.04 p.m.]: I move:

That this House:

(1) condemns the Government for breaking its promise to reduce energy prices for families in Wollongong and across the State;

(2) notes the Premier's comments following the March 2011 election that the price increases recommended by the Independent pricing and Regulatory Tribunal would be fully implemented, contradicting statements prior to the election that families would be "given a break"; and

(3) notes that time and time again whilst in Opposition Mr O'Farrell's shadow cabinet said the Independent Pricing and Regulatory Tribunal recommended increases should be rejected.

I refer to the O'Farrell Government's broken promises to households in New South Wales. Last year in the lead-up to the New South Wales election Barry O'Farrell tricked people into voting for him and his Government with false promises that he had no intention of keeping. There are heaps of broken promises, but for the moment I will speak about this one. Prior to the election, Barry O'Farrell promised to slash household electricity bills by merging the distribution businesses of the State-owned electricity companies EnergyAustralia, Integral Energy and Country Energy to pay for tiered rebates for 1.4 million families. Barry O'Farrell claimed his policy was responsible, achievable and deliverable while also tackling the drivers of electricity prices, none of which the Premier and his Government have delivered on. This just proves that you can say anything and promise anything before an election to get into government and then just renege on those promises. I remind members that Barry O'Farrell said his announcements would be responsible, achievable and deliverable. What rot.

Mr O'Farrell also claimed that this policy would be a win for families, pensioners and low-income earners of the Illawarra and New South Wales. Now, following the Premier's broken promises, they face increased electricity costs of $500 or more per year. Families, pensioners and low-income earners are hurting, and many of them voted for the O'Farrell Government because of promises made about reducing the impact of the cost of electricity and not fully passing on the recommendations of the Independent Pricing and Regulatory Tribunal. In February 2011, prior to the election, Mr O'Farrell also led New South Wales voters to believe that the poles and wires of the State's power industry would stay in public hands. He said, "We have absolutely no plans to privatise either the generators or the poles and wires." Three months after being elected the Premier confirmed that price increases of up to 18.1 per cent recommended by the Independent Pricing and Regulatory Tribunal would be implemented fully, contradicting again statements made by the Premier prior to the election.

Mr Jonathan O'Dea: Point of order: If the member is going to quote supposed comments I ask that they be sourced and authorised properly. When people are quoted in this House it is standard practice that the source of the quotes is identified so that they can be verified.

ACTING-SPEAKER (Mr Lee Evans): Order! I will seek some clarification on that matter from the Clerk.

Ms NOREEN HAY: To the point of order: I suggest that I should be allowed to continue my speech until you receive advice about the matter.

ACTING-SPEAKER (Mr Lee Evans): Order! The member for Wollongong may continue.

Ms NOREEN HAY: Three months after being elected the Premier confirmed that price increases of up to 18.1 per cent, as recommended by the Independent Pricing and Regulatory Tribunal, would be fully implemented, contradicting statements he had made prior to the election. Yet time and time again in opposition Mr O'Farrell and his Cabinet said that the recommendations of the Independent Pricing and Regulatory Tribunal should be rejected. Under its Fairness for Families, a fully costed and funded plan, the former Labor Government would have increased the New South Wales energy rebate to $250 per year, saving families $1,000 in electricity bills over the life of the plan. Labor would have extended the eligibility for the energy rebate to all New South Wales households with a combined income of under $150,000 a year, together with the decision by the former Labor Government to offset the cost of the Solar Bonus Scheme.

That initiative would have saved up to $350 in electricity bills for average families in the Illawarra and across New South Wales. This Government also promised to cap power company dividends to the State in order to keep electricity prices down. However, the New South Wales budget papers show that power network dividends to the Government will increase from $579 million to $825 million next year. The voters of the Illawarra and New South Wales did not give the Premier a blank cheque to privatise power stations and increase electricity prices. There is a genuine sense of betrayal in my electorate, and the Government must be held accountable. South Australia privatised electricity prices by 30 per cent to 40 per cent—a fate that now awaits New South Wales.

But there is worse to come for the people of this State, with the Independent Pricing and Regulatory Tribunal predicting a further 2 per cent to 10 per cent increase from July 2012 due to the higher network costs paid by the electricity providers, allowing them to recover the increased cost of doing business. I call on the O'Farrell Government to make its intentions clear as to what it plans to do to help residents in the Illawarra and across New South Wales cope with the huge increase in their electricity bills and to implement rural assistance for families that have been hit hardest by these crippling price hikes. I sincerely hope that Government members who speak to the motion will give a commitment to assist those families.

ACTING-SPEAKER (Mr Lee Evans): Order! I refer to the previous point of order and remind members that during a speech they may read extracts from documents other than newspapers or Hansard, provided the quote is brief and that the source of the document is identified properly before a member quotes from it. The member for Wollongong should identify the document from which she quoted.

Mr CHRIS PATTERSON (Camden) [12.12 p.m.]: I oppose the motion moved by the member for Wollongong, which is completely inaccurate and hypocritical. It states:

That this House:

(1) condemns the Government for breaking its promise to reduce energy prices for families in Wollongong and across the State;

(2) notes the Premier’s comments following the March 2011 election that the price increases recommended by the Independent Pricing and Regulatory Tribunal would be fully implemented, contradicting statements prior to the election that families would be 'given a break'; and

(3) notes that time and time again whilst in Opposition Mr O’Farrell’s shadow cabinet said the Independent Pricing and Regulatory Tribunal recommended increases should be rejected.

The O'Farrell Government does not support this motion for the very simple reason that it is inaccurate and hypocritical. The member for Wollongong should by now be aware that under the last five years of the former Government electricity prices rose by more than 60 per cent. A conga line of Labor energy Ministers and Treasurers ripped out $14.2 billion in dividends and tax-equivalent payments from electricity businesses. The former energy Minister, now Leader of the Opposition, was guilty of neglectful and incompetent management— something that he has taken with him to his current role. The former energy Minister sat back and watched billions of dollars in dividends ripped from power companies and allowed overdue investment to flow onto the bills of customers by way of price rises. Members also know about the former energy Minister's embarrassing and amateur bungling of the Solar Bonus Scheme, which saw the scheme blow out from a predicted cost of $355 million to $1.7 billion—and New South Wales households have had to foot the bill. I have described the Leader of the Opposition as being "hypocritical and inaccurate" and now I add the words "embarrassing and amateurish".

Ms Sonia Hornery: Point of order: This motion is not about the Leader of the Opposition. I ask that you bring the member for Camden back to the leave of the motion.

ACTING-SPEAKER (Mr Lee Evans): Order! The member for Camden will return to the leave of the motion.

Mr CHRIS PATTERSON: For 16 years the former Labor Government showed little regard and had a resounding lack of respect for New South Wales energy consumers facing increasing power bills and cost-of-living pressures. It is more than a bit rich for the member for Wollongong to move a motion about power prices. However, the Liberal-Nationals Government welcomes the opportunity to correct her misconceptions. The Coalition campaigned on increasing assistance to New South Wales households and families, and that is exactly what it is doing. The member for Wollongong asked what the Government is doing, and I will tell her. Recently the Minister for Resources and Energy, the member for Terrigal, announced the delivery of yet another election commitment—that is, the commencement of the new Family Energy Rebate from 1 July.

The rebate will start at $75, rising to $125 on 1 July next year and to $150 by 2014. More than 540,000 families across New South Wales will be eligible to receive the rebate. It is available to those families with a combined income of below $150,000 and eligible under the Commonwealth's Family Tax Benefit A or B. This new rebate is a recognition by the O'Farrell Government that households and families across New South Wales are struggling to cope with rising power prices. The rebate is being funded by the merger of the State's three electricity distribution businesses announced by the energy Minister in March. Additional savings from merging all three businesses will be directed to placing downward pressure on the retail price of electricity by reducing network charges, which will benefit all New South Wales energy customers.

More than 700,000 families that were neglected by the former Government will also receive increased assistance through the Government's Low Income Household Rebate, which rises to $215 from 1 July and increases to $235 by 2014. To reduce the impact of electricity price rises on households, the Government has also implemented a new dividends policy that will cap dividends for each of the Government-owned electricity businesses at existing forecast levels; commissioned a review of the electricity network licence conditions to halt any overspending that may be forcing up power prices; closed the former Labor Government's financially unsustainable Solar Bonus Scheme to new customers to reduce impacts on energy prices—

Ms Noreen Hay: Point of order: I want to know what the Government intends to do. The member for Camden should have read my motion properly. He is referring to solar rebates, which have nothing to do with the motion before the House. I ask you to bring him back to the leave of the motion.

ACTING-SPEAKER (Mr Lee Evans): Order! The member for Camden is being relevant to the motion.

Mr CHRIS PATTERSON: I will not labour the point, but I note that the member for Wallsend and the member for Wollongong have had to come to the defence of the Leader of the Opposition. Their points of order related to the solar bonus and the amateurish performance of the then energy Minister, now Leader of the Opposition. I have obviously touched a raw nerve; Opposition members are ashamed. I will not say any more. It is extremely disappointing to see the recent draft price rises of the magnitude reported by the Independent Pricing and Regulatory Tribunal—the average increase in household regulated prices is 16 per cent from 1 July 2012. While the Government has no legislative authority to overturn Independent Pricing and Regulatory Tribunal decisions—and, once again, the member for Wollongong should be aware of that—it remains committed to doing everything it can to reduce the impact of those price increases. I have not addressed the carbon tax and the fact that members of the Opposition support it; I will leave it to my colleague the member for The Entrance to do that. For these compelling and sound reasons, I oppose this motion.

Ms TANIA MIHAILUK (Bankstown) [12.20 p.m.]: I congratulate the member for Wollongong on moving this excellent motion. Obviously it is a sore point for Government members because undoubtedly many who were on the Opposition benches in the last Parliament took the opportunity time and again to attack the former Government about Independent Pricing and Regulatory Tribunal recommendations. They called on the Labor Government repeatedly to reject the tribunal's recommendations, but now they are in government they are very quiet about this issue. A functioning government requires an effective opposition to hold it to account. However, it is also important that oppositions do not make idle promises. When members of the Government were on the Opposition benches they made many idle promises. In fact, we have found more than 200 broken promises after more than 12 months of this Government, and it continues to break election promises.

One such promise was that in government it would reject any future Independent Pricing and Regulatory Tribunal recommendations. Members opposite made a lot of noise about electricity prices and I am sure many of them discussed that issue at length during the election campaign. It is time they were honest with the people of New South Wales about their plans with regard to electricity pricing. The former Coalition energy spokesman, the Hon. Duncan Gay, issued a media release about this issue. In deference to the member for Davidson, who is so concerned about the sourcing of quotes, this quote is from ninemsn.com. Prior to the election the Hon. Duncan Gay said that the Government should reject price rises, which will see many families toppling into financial collapse. He called on the Labor Government to reject the Independent Pricing and Regulatory Tribunal's recommended electricity prices. He stated:

The Government should reject these costs and come back to something families could afford.

Of course, the Hon. Duncan Gay was quickly moved from the Energy portfolio when the Coalition won government to ensure that he did not fulfil that commitment. Members were quick to point out that Independent Pricing and Regulatory Tribunal recommendations were just that—recommendations—and that the Government had the opportunity to reject them outright. The Deputy Premier stated in this place that the Government could reject the tribunal's recommendations, and he called on it to do so. He is now silent about those recommendations. Last year Integral Energy increased its prices by 15.5 per cent, EnergyAustralia increased its prices by 17.9 per cent and Country Energy—which services the area that the Deputy Premier claims to champion—increased its prices by 18.1 per cent. Of course, he said not one word about that despite the fact that he demanded the Labor Government reject the tribunal's recommendations, which this Government later accepted. [Time expired.]

Mr CHRIS SPENCE (The Entrance) [12.25 p.m.]: As stated by my colleague the member for Camden, the O'Farrell Government does not support this motion because of its inaccuracy and hypocrisy. With power bills rising by 60 per cent during the last five years of the Labor Government's term in office, I find it astonishing that the member for Wollongong would be so stupid as to move this motion.

Ms Sonia Hornery: Point of order: The member is impugning the character of the member for Wollongong by referring to her inappropriately. The member should withdraw that word.

Ms Noreen Hay: It was unparliamentary.

Mr CHRIS SPENCE: It is hardly unparliamentary coming from you.

Ms Noreen Hay: Point of order: The member for The Entrance may be new to this place but there are standards. Members should not attack another member of this House at a personal level. They can say things in general terms, but what the member just said was said directly to me. Members should not speak through the Chair.

ACTING-SPEAKER (Mr Lee Evans): Order! Members should direct their comments through the Chair. They should also refrain from making personal attacks on other members.

Mr CHRIS SPENCE: What is missing from this debate is recognition of the devastating impact of Labor's carbon tax—a devastating tax that members opposite fully support. The price increases proposed by the Independent Pricing and Regulatory Tribunal from 1 July have two components: Labor's carbon tax and increasing network costs. More than 90 per cent of the proposed power price increases for western Sydney households will be caused by Labor's carbon tax. The Independent Pricing and Regulatory Tribunal has determined that price increases for Endeavour Energy customers are estimated to add $182 to the average household bill, of which $168 will be because of the carbon tax. Last year, the tribunal predicted that from 1 July 2012 prices would increase between 2 per cent and 10 per cent. Now, 12 months later—and overwhelmingly thanks to Labor's carbon tax—New South Wales consumers can expect average increases of 16 per cent.

It is an absolute disgrace to see Labor inflict this pain on families and businesses without compensation for the majority of New South Wales households. That is why this Government is forcing energy companies to reveal the costs of Labor's carbon tax on power bills after 1 July. We knew that the carbon tax would be devastating, but to see the real impact in dollar terms will be shocking. Now we know the real impact of the carbon tax, it is unbelievable that members opposite remain some of its biggest fans. That is, of course, except for one member—the member for Heffron. Appearing on Sky News earlier this month, the former Premier called on Prime Minister Julia Gillard to "seriously think about whether she can revoke [the carbon tax] .... dial it back somehow".

Ms Sonia Hornery: Point of order: My point of order relates to relevance. We are not talking about the carbon tax; we are talking about electricity.

ACTING-SPEAKER (Mr Gareth Ward): Order! The matter is relevant because electricity prices are inextricably linked to and affected by the carbon tax.

Mr CHRIS SPENCE: Following up her comments with an article on ABC's The Drum, the member for Heffron wrote of the Prime Minister:

...resigning would be a significant Hail Mary pass. It would absolve the Government of most of its sins.

The Leader of the Opposition is on the record—on AAP on 9 August—as stating:

"I support the position the Prime Minister is out there advocating, and that is putting a price on carbon, a significant economic reform that we are seeing being put in place by the federal government"...

"I support putting a price on carbon, and that's what the prime minister is doing.

[Time expired.]

Ms SONIA HORNERY (Wallsend) [12.30 p.m.]: How could I not support the motion moved by my colleague the member for Wollongong challenging the O'Farrell Government for breaking its promise to reduce energy prices for families in Wollongong and across the State? During the Coalition Government's first year in office it has blatantly ignored the hardworking families and pensioners who will be hardest hit by the 17 per cent increase in State electricity prices. This price increase is affecting average households with high levels of electricity usage and low incomes. The Government should be fair dinkum and acknowledge that electricity is a necessity of life and most definitely not a luxury. The Independent Pricing and Regulatory Tribunal recommended a 17 per cent price increase, but that was only a recommendation. It did not have to be accepted by the Government—it did not have to be—and implemented. I recall vividly the shadow Minister for Energy, the Hon. Duncan Gay, saying on Newcastle Prime TV in March 2010:

The Government should reject these costs and come back to something families could afford. They have done it—

That is, rejected determinations—

quite often in the past. This is in the Government's hands, what they do. The Government normally accepts the IPART recommendation, but they don't have to.

My colleague from Bankstown made the very salient point that Deputy Premier Andrew Stoner was of exactly the same opinion as Duncan Gay. Deputy Premier Andrew Stoner said:

The Government can reject Independent Pricing and Regulatory Tribunal's recommendations.

How the O'Farrell Government forgets its promises. It is our communities' opinion that it would be much more productive if the Government attempted to protect the vulnerable communities of New South Wales and increased the level of financial assistance in the form of higher electricity rebates. The Premier told those affected that he had enormous sympathy for them, but it is cold comfort to those affected by recent increased prices. Would it not be advisable for the Government to look back at its election promises and start honouring them? I make the following three suggestions to the Coalition Government. First, do not privatise electricity. I opposed the privatisation of electricity in government and I continue to oppose it strongly. Secondly, start freezing electricity dividends instead of increasing them. Thirdly, scrap the merger of three electricity distributors immediately. Premier O'Farrell should use the tool of foresight to reduce the threat of future power costs and to remember this, and I quote from a media release of February 2010 in which the Premier said:

The New South Wales Liberals and Nationals support any measures to reduce the impact of power prices.

If the Coalition Government really believes this, it should show the residents of New South Wales that it really means it. I strongly support the motion moved by the member for Wollongong because it is about looking after the battlers.

Mr JONATHAN O'DEA (Davidson) [12.31 p.m.]: I will make a short contribution to this matter. It is a matter in which the Public Accounts Committee takes a particular interest, as it is currently inquiring into how we will continue to provide a reliable and sustainable energy supply to the people of New South Wales in as affordable a way as possible. In the course of our inquiry, which I will not go into in detail because it is obviously the subject of ongoing committee deliberations, it has become apparent that price rises are a factor of, in my view, three main forces. One is green energy schemes, the second is network costs and the third is, particularly in the coming year, the impact of a carbon tax.

One has to realise that in making statements, which this Government made when in opposition, to the effect that we must control increases in price rises for energy and electricity, we also must consider how we can control those costs in a reliable and credible way. To back up those statements made on behalf of the public of New South Wales that we must keep costs under control—and various Ministers made some statements, but not all the statements that have been alleged today have been verified or accurately sourced—we identified in opposition that network costs had not been managed properly under the previous Government. On occasions, there has been excessive network expenditure.

There is no doubt, in terms of green schemes, the previous Government manifestly mismanaged them. The solar bonus scheme is, under any measure, an unmitigated disaster that was overseen by the now Leader of the Opposition. That unsustainable and very costly scheme did have an impact and continues to have an impact on energy prices. Our Government has also announced the closure of the greenhouse gas reduction scheme on commencement of the Federal Labor Government's carbon tax. That will reduce duplication among Federal and State schemes and minimise costs for electricity consumers. In the next 12 months the carbon tax will contribute up to 90 per cent of the price increase in electricity bills.

Mr Daryl Maguire: How much?

Mr JONATHAN O'DEA: It will contribute up to 90 per cent, due to the carbon tax. Whether or not one supports the carbon tax—and those on this side clearly do not; those on the other side appear to support it—one cannot deny the fact that it has a major impact on the cost of electricity for the people of this State. In summing up on this matter, I ask the member for Wollongong: If we are going to decrease prices for electricity further, how do we do that? As the member for Camden indicated, this Government has introduced family energy rebates that will apply from 1 July, which do have the effect of helping people. There are also low income household rebates. They are very real measures. What would the Opposition do, or are its members just full of hot gas as usual?

Ms NOREEN HAY (Wollongong) [12.36 p.m.], in reply: I acknowledge the contributions by the member for Camden, the member for Bankstown, the member for Wallsend and the member for Davidson. In relation to the contribution of the member for The Entrance, in the words of Forest Gump: Stupid is as stupid does. The member for Camden did everything but address the motion before the House. He actually re-read my motion; however, I am not quite sure why he did that because I had already read it onto Hansard. I thank him for trying to assist me, but I suggest he get his head around his own job first and then I will tell him how I do my job. I was very interested in the brief contribution by the member for Davidson, who talked about what the Federal Government is doing. I note that during the 12 years of the Howard Federal Government, when it cut $3 billion from the New South Wales GST, those opposite did not want to talk about that at all.

The motion I moved today is about the Government breaking its promises. The Government does not have to pass on the recommendations of the Independent Pricing and Regulatory Tribunal in full and, as I indicated in the lead-up to the election, Premier Barry O'Farrell said he would not be passing them on in full. What is this motion about? A couple of members opposite do not seem to understand it. It condemns the Government for breaking its promises to reduce energy prices. Government members can talk about anyone else they like—they can talk about Queensland and Western Australia—but they have not addressed the motion condemning their breaking of promises to reduce the price of energy for families in Wollongong and in New South Wales.

The motion also notes the Premier's comments following the election on 26 March that the price increases recommended by the Independent Pricing and Regulatory Tribunal would be implemented fully—in direct contradiction of everything he said in the run-up to the election. Which one of the members opposite addressed that? Which one of them said anything? They all back-flipped, ducked and dived rather than dealt with the fact that they misled the community. They did not keep their promises and, if I was not as polite a person as I am, I might be tempted to say that they lied, but I am too polite to say that. We heard personal attacks from the member for The Entrance, which were absolutely appalling. As bad as those opposite are, I have not known any of them to behave like that. Hopefully it is not a new level to which we are stooping.

I acknowledge that the member for Wallsend and the member for Bankstown included a host of effects of the Government's broken promises and I thank them for that. I congratulate them on representing their electorates in the way they do. It is important that we take positive action to help the disadvantaged and pensioners. Members are elected representatives of the people of this State—not like the member for Newcastle who said yesterday that he supported Queensland. Shame on him. We do our best for them. The Government should get on with the job of helping the people of New South Wales. The Government does not have to implement in full the recommendations of the Independent Pricing and Regulatory Tribunal.

Question—That the motion be agreed to—put.

The House divided.

Mr Barr Ms Burney Mr Daley Mr Furolo Ms Hay Ms Hornery Mr Lynch

Dr McDonald Ms Mihailuk Ms Moore Mrs Perry Mr Piper Mr Rees Mr Robertson

Ms Tebbutt Ms Watson Mr Zangari Tellers, Mr Amery Mr Lalich

Mr Anderson Mr Annesley Mr Aplin Mr Ayres Mr Baird Mr Barilaro Mr Bassett Mr Baumann Ms Berejiklian Mr Bromhead Mr Brookes Mr Casuscelli Mr Conolly Mr Constance Mr Cornwell Mr Coure Mr Dominello Mr Doyle Mr Edwards Mr Elliott Mr Evans

Mr Flowers Mr Fraser Mr Gee Mr George Ms Gibbons Ms Goward Mr Grant Mr Gulaptis Mr Hazzard Ms Hodgkinson Mr Holstein Mr Issa Mr Kean Dr Lee Mr Notley-Smith Mr O'Dea Mr Owen Mr Page Ms Parker Mr Patterson Mr Perrottet

Mr Piccoli Mr Provest Mr Rohan Mr Rowell Mrs Sage Mr Sidoti Mrs Skinner Mr Smith Mr Souris Mr Speakman Mr Spence Mr Toole Mr Torbay Ms Upton Mr Webber Mr R. C. Williams Tellers, Mr Maguire Mr J. D. Williams

Ms Burton	Mrs Davies
Ms Keneally	Mr Stokes
Mr Park	Mrs Williams

Question resolved in the negative.

Motion negatived.