Press conference with Tom Koutsantonis MP, South Australian Minister for Energy and Mining, Port Augusta SA
KANE SALISBURY: Welcome to Port Augusta, everybody. Fantastic to have Minister Koutsantonis and Minister Bowen here today. Look, we’re here to talk about our Hallett Green Cement Transformation Project at Port Augusta here. We’re going to dig out the old flyash pan and take out 20 million tonnes of flyash and turn it into a cement alternative. So Hallett Group, we’re really proud of this project that we’ve been working on for a long time. We think it’s going to really help to decarbonise the industry here in South Australia and beyond. And, you know, we’re super proud to be part of this Port Augusta community. We think it’s a great place to do business. And great to have you here. Thank you for coming.
MINISTER FOR CLIMATE CHNAGE AND ENERGY CHRIS BOWEN: Thanks very much, Kane. It’s great to be here in Port Augusta, and I’ve been very impressed with what I’ve seen with your plans, and not just your plans but your actions to reduce emissions, create green concrete, green cement here in Port Augusta, and create jobs. And that’s what this transition is all about – the site of an old coal-fired power station which employed a lot of people but reached the end of its life several years ago, and now this whole precinct’s being transformed. Not just by you – by you and by others into a renewable energy hub, a green cement hub and a critical minerals hub.
And this is what the future is about. Port Augusta has been an important part of Australia’s economy for many generations, and it will be for many generations to come. We want young people in Port Augusta to have opportunities to stay here and work here if they choose to. We want people to have the opportunity to move here for work. And that’s what this is all about – real plans being delivered now that will be important in our emissions reduction and important in jobs creation.
Now all this is happening today and happening in the next few years, as opposed to a fantasy of a nuclear plan in this area, which I dare say this is a concrete plan compared to a fantasy plan. This is real jobs being created now and in the next few years as opposed to a nuclear facility imposed on this community with no consultation many, many years in advance. And you can’t have both. You can’t have all these renewable energy plans and a nuclear facility. And I’m going to say we want the renewable jobs which are being delivered now and in coming years, not the fantasy.
I’m also pleased to be here to announce with my friend Tom, Minister Koutsantonis, that the Federal Government and the South Australian Government have signed Australia’s first Renewable Energy Transformation Agreement. These agreements which accompany our Capacity Investment Scheme, they’re agreements between me and the state Energy Minister to work together to achieve our renewable energy target. And we’re going to do things together in South Australia, as we’ve always done, Tom and I, in very close partnership, but now cemented in an agreement, formal agreement, between the two governments.
And as part of that I’m undertaking to deliver a gigawatt of renewable energy for South Australia. That’s equivalent to the homes in Adelaide – enough to power all of Adelaide’s homes – through our Capacity Investment Scheme in six-monthly auctions between now and 2027, and also a minimum of 600 megawatts of storage. People say the sun doesn’t always shine and the wind doesn’t always blow. Well, the rain doesn’t always fall either, and we store water in dams, and we can store renewable energy in batteries and other ways, and we’re going to deliver 600 megawatts of that to South Australia.
This is the first Renewable Energy Transformation Agreement that I’ve signed, which is a reflection of the way Tom and I work together – very closely and in partnership. And I’m very pleased to be here in this pretty important part of South Australia to announce we’ve signed that and we’ll get on and deliver it. This is very important. I’m in advanced discussions with the other states as well and have in-principle agreements with most of the other states. This is the first formal, finalised agreement, and I’m delighted to have signed it with Tom and to announce it today. Tom.
SOUTH AUSTRALIAN MINISTER FOR ENERGY AND MINING TOM KOUTSANTONIS: Thank you, Chris. South Australia has been a bit of a pioneer and a leader in renewable energy. We’ve always wanted a partner, someone in the Commonwealth who can partner with us to take the full advantage of our sun and our wind. We’ve got both in abundance today. And often we haven’t had that partner. Finally we’ve got it. Someone who understands the possibility and the power of renewable energy and what it can do to fuel our state and fuel jobs into the future.
Storing our sun and wind has been a key aim. Storage is the complex solution to decarbonisation. And what we’ve got now is a Commonwealth Government that’s putting its money where its mouth is, and the state government’s job now is to partner in that ready to make sure we have a supply of firming capacity. And our part of the arrangement is to make sure that there is ample firming capacity for those renewable resources in there and to maintain reliability of the grid, which has always been our traditional role as a state government.
I can’t tell you how important it is to have Chris here. Chris takes Port Augusta seriously. The Commonwealth Government takes Port Augusta seriously. Port Augusta is a tip of the spear of the state’s prosperity plan, whether it’s Whyalla or Port Augusta or Port Pirie, it’s an important part of our future prosperity for this state.
I haven’t seen Peter Dutton here. I haven’t seen the Commonwealth Opposition here at all talking to the state government about their pretend plans for nuclear power in South Australia. What I do have is a real partner. Someone who’s really interested in investing in South Australia and actually doing real work here to see our economy grow. Not things pointing to on a map. If Peter Dutton was serious about what he was talking about, he would have come to us earlier and spoken to us about it, consulted with us. But we don’t have that type of relationship with the Federal Opposition. And for whatever reason, he hasn’t even stepped foot on this site to actually have a look at it. And I don’t quite frankly – I don’t think that’s a person who’s serious about what he’s talking about.
This site here where the Port Augusta power station once sat is now at capacity in terms of our renewable transmission lines to Adelaide. So the idea you can just plug in a nuclear power station here is just folly. Look, I have to say, it really hasn’t been thought through. It’s not a real plan; it’s a plan that’s, frankly, it’s just a pretend plan. It’s a plan that’s to try and delay the exit of coal and to try and pretend they’ve got a plan for the future. The real plans are the ones that Chris and I have to make sure that we continue to grow our renewable resources and continue to firm those renewable resources and store them. That’s a plan for the future.
CHRIS BOWEN: Over to you.
JOURNALIST: All right. So from ABC here. So, you were talking about the other states and territories you’re making agreements and in-principle agreements. Which states and territories are they, and how soon do you hope to formalise those agreements?
CHRIS BOWEN: I have in-principle agreement with every state except Queensland. And I’ll be trying to progress those to final agreements in coming weeks. But I’m just delighted that the first agreement is between the Commonwealth and South Australia. It’s reflective, as I said, of our partnership and the way we work together, working well with the other ministers and the other states, of course, but I’m delighted that we’ve done this first deal with South Australia.
JOURNALIST: How much federal funding has been committed to this agreement at this stage?
CHRIS BOWEN: Well, what I’ve committed is gigawatts – a gigawatt for South Australia and 600 megawatts of storage. That’s underpinned by a Capacity Investment Scheme, fully underwritten by the Federal Government. And the state government, as Tom said, will ensure reliability mechanisms to support that rollout and continue with their very excellent green hydrogen and jobs plan.
JOURNALIST: What [indistinct] will these solar and wind projects be built around the country?
CHRIS BOWEN: So there’s been an auction. We have our first auction underway for six gigawatts. We’ve had more than 40 gigawatts express interest in that auction, so that shows me that there’s a very strong pipeline of renewable energy. We’ll be choosing those projects which are the best value for money for the taxpayer, which provide the best community benefits, the best local engagement, the best jobs opportunities for locals, including First Nations locals, and I’ll be announcing the results of that auction later this year.
JOURNALIST: If the Opposition win the next election and the nuclear works, the nuclear reactors undergo, commence that project there, what will happen to sites such as this and other renewable projects you have in the works?
CHRIS BOWEN: Well, they’ll stop. And the worst thing about that is you mentioned that if the Opposition wins the next election nuclear facilities will start. Well, actually, they won’t. They’ll have then years of conversation, laws, planning, discussions about nuclear. There won’t actually be any electricity generated under their own plans, they say and admit, before 2035. And that is hugely, hugely unrealistic, even that. You know, it’s going to be well into the 2040s in the real world. And in the meantime, we miss this massive opportunity for our country.
JOURNALIST: And why here? Why in Port Augusta today to make this announcement of the agreement?
CHRIS BOWEN: Well partly because – well, firstly, because Port Augusta is such an important part of the South Australian economy. Secondly, because the Opposition is proposing a nuclear plant here. Now, maybe Mr Dutton and Mr O’Brien couldn’t be bothered coming, but I’m coming to talk to locals and to see the alternative. The alternative to nuclear is the sorts of plans we’ve seen today and the sorts of opportunities for this site.
JOURNALIST: So, this is from Seven. Australia’s real growth since COVID is some of the slowest in the developed world. What’s your government doing to help people with the cost of living?
CHRIS BOWEN: I presume that’s about wages growth. So, we want Australians to earn more and to keep more of what they earn. That’s why we’ve introduced tax cuts on the 1st of July, and that’s why we’ve worked so hard through Tony Burke to ensure wages growth. When we came to office wages were going backwards at 3.4 per cent; they’re now going forwards. That’s a good thing. Remember when Anthony Albanese said he wanted an improvement in wages and his predecessor said that that was outrageous and he was a loose unit, and Anthony Albanese said he absolutely wanted wages growth. Well, we’re delivering wages growth. Of course we have more to do, and this report underlines that Australia has got a long way to go to catch up on 10 years of policy indolence, but we’re getting on with it.
JOURNALIST: And with prediction rates will rise this year, has the PM discussed an early election?
CHRIS BOWEN: Firstly, we don’t comment on interest rates; that’s a matter for the independent Reserve Bank. And, secondly, the Prime Minister will call an election when the Prime Minister feels it’s the right time for the country. The Prime Minister has previously indicated that there’s some time before that’s going to occur.
JOURNALIST: And Channel 9. OECD says transition from high emission industries to green industries is the hardest for low-skilled workers. How is the government making sure that workers aren’t left behind?
CHRIS BOWEN: Well, we’re doing a lot to ensure that, firstly, we’re seizing opportunities for Australia to be a renewable energy superpower, and also that every Australian can play a role. Now, for example, Brendan O’Connor, the Skills Minister, made renewable energy skills and transition skills the centrepiece of his agreements with the states. He and I announced recently budget funding to support that transition through TAFE to enable people to increase their skills to participate in the revolution in energy. This is a massive opportunity for our country and we want every Australian, whether they currently have the skills required or whether they need help to get the skills required to be able to participate in that.
JOURNALIST: And one for Minister Koutsantonis – just come in a half step this way, please; beautiful. Okay, there’s been a woman who drove on the O-Bahn track again. What can we do to stop it?
TOM KOUTSANTONIS: It’s a perennial problem in South Australia, and it’s a well established on-off ramp, so confusion shouldn’t be occurring. But I understand there are unique circumstances here. Luckily it was on the outbound track, so it shouldn’t have impacted too badly. But it just shows you how critical – what a critical piece of infrastructure the O-Bahn is and how beloved it is. In terms of our public transport infrastructure, more people use the O-Bahn every day than every other form of public transport combined. We have a bus on the O-Bahn every 55 seconds in peak. So it is a very, very popular piece of infrastructure and when it goes down it has real-world impacts on timetables and congestion. So, we do what we can, but ultimately sometimes these things occur, and we try and clear it up as quickly as we possibly can.
JOURNALIST: That’s all; thank you very much.
JOURNALIST: Just a couple more questions for ABC, please. So, if the Federal Opposition won the next election, would you consider that a mandate and continue to work with them on the Port Augusta nuclear reactor, or what’s the state government’s move?
TOM KOUTSANTONIS: Look, it’s a big if because if I spent my money on who’d win the next election, I don’t think it’s going to be Peter Dutton. If he was serious about his plan he’d be here today. He’d be here in Port Augusta. He would have spoken to the local mayor. He would have spoken to the local community about his plans. He’s not serious about it. He’s just trying to rush this out.
But if he does win the election – I want to be very clear about this: my opposition to nuclear energy isn’t about it being nuclear; it’s about the cost. It would be the most expensive power anywhere in the world. And why would South Australians want the most expensive power anywhere in the world plugged into our grid that we’d have to pay off?
This doesn’t make any sense. If it was cost effective it could wash its own face and it wouldn’t need to be government-subsidised and government-built. Mr Dutton has confessed it is so uneconomic and so unaffordable he’s got to build it and subsidise it. And that means either our taxes are going to go up or the power is going to be really, really expensive. He hasn’t spoken about where the waste is going to be, he hasn’t spoken about where it’s going to be built – he’s just said Port Augusta. This site is taken. So I’m not quite sure where he’s planning to build this or how he’s planning to build this. And I’d say his consultation there’s been very, very poor.
JOURNALIST: Minister Koutsantonis, moving now to the state ICAC, do you think that the state parliament got it wrong when it rushed through these integrity laws through in 2021?
TOM KOUTSANTONIS: Well, let’s be clear: they were reforms brought in by the previous government, introduced by the previous Attorney-General, Vickie Chapman, and it went through a cabinet process where David Speirs was at the cabinet table. Now, look, the truth is those reforms passed unanimously through the parliament because there had been extraordinary power use and it was having real-world impacts on ordinary people, and there were a lot of failed prosecutions that meant that there needed to be change.
Now, look, we’re always looking for reforms. We’re always looking for improvements. If there are improvements to be made the Attorney-General will look at them and make a considered decision.
JOURNALIST: Are you open to reviewing the scheme?
TOM KOUTSANTONIS: That’s not up to me, it’s up to the Attorney-General. But we’re always open for reform. I mean, we’re a reformist, progressive Labor government. If there are reforms that need to be made we’ll always look at them. Of course we will. But these reforms that were introduced by the previous government are less than two and a half years old. I’m not quite sure they’ve been bedded down just yet.
JOURNALIST: Lastly, Minister, how do you respond to Commissioner Vanstone’s comments that the public interest is not being served by that narrow definition of corruption, nor by the gagging of the office from sharing information about integrity issues with the state?
TOM KOUTSANTONIS: Look, you’d have to ask her why she said those things. I’ve not seen it. But I also think the public interest is not being served when people are being charged and they go to court and they have no case to answer. So, I think this is not a reflection on Ms Vanstone; she’s been an excellent commissioner and I think everyone holds her in the highest regard. She’s one of the most spectacular former Supreme Court judges and a woman of high integrity.
I think the blame here and the criticism of ICAC is in her predecessor. And that was because of the way, I think, the ICAC conducted itself. Now, that might not have been her predecessor's fault, but it seems to me that it was a body that had extraordinary powers and those extraordinary powers had real-world impacts. There was even a suicide. And politicians acted unanimously. And rather than it being seen as politicians looking out for themselves, it was really about protecting the innocent. So, look, if there are reforms to be made, we’re up for making those reforms. But the question has to be, what are those reforms and what are the impact of those reforms.
JOURNALIST: Thank you, Ministers.