Press conference in Greensborough, Victoria

KATE THWAITES: Good morning, everyone. I'm Kate Thwaites. I'm the Federal Member for Jagajaga around I'm very pleased to be here at WaterMarc in Greensborough today. Federal Minister Chris Bowen and the Mayor of Banyule Council, Liz Nealy.

This facility here at WaterMarc is a really important one for our community. As you can see today there's a school swimming carnival going on, it's a place where kids come to get their swimming lessons, water polo classes happen, it is a really true community facility. And what we're doing by supporting Banyule Council, with this $2.3 million investment is helping them to take this pool from running on gas, which is very expensive, and take it to running on heat pumps and a cleaner, more efficient energy source. That, of course, is good for the pool, it's good for the council, and it's good for the community more broadly.

And certainly I know that members of this community are passionate about the transition to clean energy. It is something that residents here in Jagajaga talk to me about very often, and they tell me they do want to see the transition happen. So, I'm very pleased that this is the Federal Government through this fund, working together with our wonderful council here in Banyule to deliver clean energy to WaterMarc and the community. Chris over to you.

CHRIS BOWEN: Thanks very much, Kate. Well, dealing with climate change and dealing with our energy transition means working together, not a whole-of-government effort, but a whole-of-government [indistinct]. The federal, State and local on the same page working hard together, and I know that often the best solutions to local issues are held in the hands of mayors and local councils, who know their area better than those of us in Canberra or in Spring Street, who know that they have good solutions to local problems.

And so, a while ago I was delighted, with the Prime Minister, to announce support, $100 million for local government, to help local government reduce their emissions and their energy bills. Today we're announcing the results of round one, $50 million of expenditure right across the country to help local governments reduce their emissions and reduce their electricity bills.

And so I'm delighted to be launching this national program here today in Banyule, because the council's done an excellent job, because you have no stronger advocate for action on climate change in the Federal Parliament than Kate Thwaites. And because this is a great example of what governments working together can do. Replacing, as Kate said, gas-fired water heating and energy for council building here with heat pumps. Highly efficient, low-emissions heat pumps which will reduce this council's emissions and support your drive to net zero, but also reduce your electricity bill, your energy bill, by hundreds of thousands of dollars a year. That's good news for ratepayers. What's good for the planet is good for your pocket. That's true for individuals, it's good for households, it's good for levels of government, it's true for local government. What's good for your pocket is good for the planet and vice versa.

So today, we are announcing the results of the first round of community energy upgrade fund right across Australia, supporting many local governments, supporting those local governments in their efforts to reduce their energy bills and reduce their emissions. Many swimming pools have been converted, many libraries and council chambers are moving towards renewable energy, more energy efficiency, and in many cases, the swimming pool will be the council's biggest energy user. Keeping the pool warm in winter for those who like to swim, keeping the pool clean and keeping it a great community facility is energy hungry. But we can make it a lot more energy efficient. We can make the energy renewable, and that's exactly what we're doing.

So I congratulate all the councils that have won, particularly here in Banyule today, of course, but all the councils who have won support under this grant. Those councils who didn't get funding this time, we are opening round two of the funding, they can apply again, and other councils right across Australia who haven't applied, I encourage them to apply because this project, and the projects like it across Australia are an example of what we can achieve together. Levels of government working together, in the best interests of every Australian, ratepayers and taxpayers, citizens who want to see our emissions reduced. This is a good example of what we can do.

We’ve started on this road but there's a lot, lot more to do, a lot, lot more to do. This is a good example of what we can do together. I'm delighted to make this announcement here in Banyule and for it to apply for those successful councils right across Australia. I'd ask Mayor Liz to add to the points and then we'll take questions.

LIZ NEALY: Thank you so much to the Minister and to Kate Thwaites for this exciting announcement. We're so happy to receive it and very grateful. I would just like to acknowledge the Deputy Mayor, Councillor Peter Castaldo. He's very excited as well, dancing around, couldn't wait for you to be here.

WaterMarc is our largest aquatic and leisure facility and it's the largest in the northern region of Victoria. We welcome more than 700,000 people every single year. Our visitors, they need to be comfortable in water temperature for both swimming and the room heating. As the Minister mentioned, it's a major consideration in running this. So, we just went for a little visit down to the boiler room so that the gas boilers, they are there constantly to heat the pool water, the hall, the office area. So, today's announcement will enable us to run 100% renewable energy.

The electric replacement of the heat pumps will remove all emissions from the on-site operations. It will be three to five times more energy efficient than the current boilers. It will also heat the four-storey office building above, making it Australia's first integrated aquatic precinct and electrification project, so it's exciting.

Just a couple more things to mention. So as you know, we've set our net emissions to zero by 2028. Our three aquatic centres make up 93% of the gas used by all council facilities across the municipality. So we cannot reach zero emissions without electrifying these centres. So we thank you. It will bring us one step closer to our target. It makes way for a 37% reduction in emissions from all council operations and in the largest emissions reductions for Banyule. And we'd also like to celebrate that it's environment improvements and it saves us $465,000 in costs per year. So, it's a financial saving as well for the municipality and our residents will be happy with that. So thank you so much.

CHRIS BOWEN: Thank you, Mayor Liz. Over to questions.

SPEAKER: I might start with the Mayor, if that's okay--

CHRIS BOWEN: Certainly.

SPEAKER: Do you have a timeline for when this will be complete, that you set this centre? I take it by 2028?

LIZ NEALY: We have a timeline for...?

SPEAKER: When the electric is to be installed?

LIZ NEALY: I'm not sure about that. Do we? have a timeline?

SPEAKER: [Indistinct] we'll start planning and delivering as soon as we can.

LIZ NEALY: As soon as we can, yeah--

CHRIS BOWEN: Part of the funding agreement is that projects will be done by 2027.

SPEAKER: Okay. I might just put one to Kate and then I'll come to you, Minister. You are a Federal Labor member, your seat covers parts of suburban outer Melbourne, has the result in the State election of Werribee put you on notice seeing that significant swing away from Labor?

KATE THWAITES: I always pay attention to the people who live here in Jagajaga and listen to their needs. It's why I got closer to council on projects like this one that are important to our community. So I'm always out there talking to people about what matters. As a Government we've been really focused on supporting this area, people in this area and others with cost-of-living pressures which we know are very real at the moment. I'm supporting the transition to the clean energy, which Chris has been managing which is this is all about. That's the work I do. I believe it's the work that I talk to [indistinct] about and I'll keep doing that.

SPEAKER: Minister, I think most people would probably be surprised to hear that swimming pools are many councils' largest source of emissions. Is there much more work to be done in this space across Melbourne given how many heated pools we have in winter?

CHRIS BOWEN: Yes. Right across Australia. It's not surprising when you think about the amount of gas that's required to heat a large swimming pool, a heated pool, or indeed just running the filters. Many households run a household swimming pool filter. Times that by a thousand to run a big 50 metre pool. So, yes, there's more to do. That's why we've started this program, that's why there's two rounds of funding. This is round one. So, I know there will be other councils looking at projects like Banyule and saying well, there's something we can emulate, copy, I welcome that. So yes, there's a lot more to do.

Again, it's not horses for courses. It's designed specifically for the needs of each local government. Other local governments will have other views about how to reduce emissions. That's why we put them in charge of making a submission to us and the best bang for buck in terms of emissions reduction and bill reduction gets supported by the Commonwealth.

Councils, as I said, have great ideas. But as a former mayor myself, I know that great ideas don't equal funding. Local government doesn't have the same sources of funding. So that's why it's appropriate for federal and State governments to come and support local government, implement great ideas that they have.

SPEAKER: Just had some questions from some colleagues in Canberra, too. Your government gave 63 or $64 million to Whyalla Steelworks for an electric arc furnace. How has that money been spent? You're aware of how that money’s been acquitted?

CHRIS BOWEN: Yes, and that money's only distributed to the recipient after the achievement of key milestones. So, $63 million has not been awarded. Something much closer to $10 million has been transferred because they have met those milestones. As part of the Prime Minister's announcement in Whyalla today, we're making that money available on an ongoing basis to ensure that whoever ends up garnishing of that facility is able to continue that work. It's part of a much broader suite of measures that the Prime Minister and Premier and the Industry Minister are releasing today.

SPEAKER: You're making the rest of $63 million available on loan or the entire $2.4 billion?

CHRIS BOWEN: That's part of the $2 billion.  

SPEAKER: No trouble. How optimistic are you about the future of green steel given the hits that the green hydrogen centre has taken in the past, recent months?

CHRIS BOWEN: Well, when you're managing a very large transition, not everything follows the line and the graph or the velocity document. But the fact of the matter is, green hydrogen will be absolutely essential to decarbonising steel and decarbonising industry. What it means is something else that can replace natural gas in heavy industry across the world. That's why the world is remaining focused on green hydrogen, despite any setbacks or delays to the investment decisions. We're still the home to most of the world's green hydrogen developers in Australia, more than a quarter, more than any other single country. And it's still the case that around 20% of those have begun construction or are in final stages of their development. So that's a good thing.

So green steel, the Government's know – the Albanese and Malinauskas governments are [indistinct] green steel. We want more steel being made in Australia, we want it to be increasingly decarbonised, that's important for the future of BlueScope in the Illawarra, and for the facility in Whyalla. Increasingly the world's investors and consumers will demand decarbonised steel, and we want Australia well placed to provide it.

SPEAKER: And the $2.4 billion bailout, giving that to this operator when you've just said that the key milestones for unlocking that $63 million weren't met, is that a financially responsible decision?

CHRIS BOWEN: Absolutely, but I wouldn't accept your premise that it's just - I wouldn't accept your premise of the word 'bailout'. I think the Premier's dealt with that this morning. This is about the people of Whyalla. This is about ensuring those fine Australians who work their guts out at Whyalla have continued work. That's appropriate for governments to step in.

Now, the governments have made clear our dissatisfaction with some of the events recently at Whyalla. This is not a matter of coming in and bailing out the company. This is a matter of stepping in to support a community and that is an entirely, not only appropriate, but absolutely necessary. What's the alternative? The government sits by and lets the community suffer? This is a government doing exactly the right thing.

SPEAKER: On a safeguard mechanism, that's been in place for about a year now, is there a case to lower the thresholds for the emissions that are captured by the safeguard mechanism?

CHRIS BOWEN: No, no. The State Government is carefully designed. Let's be clear, what's happening in Whyalla is not an energy issue or an emissions issue, it's a management issue.

SPEAKER: Sorry, on the Safeguard Mechanism, there's no plans to review that scheme?

CHRIS BOWEN: There's a built-in legislative review in 2026, but apart from that, it's working as intended. It's seen [indistinct] come out, it's safeguarding the future of Australian industry to ensure that Australian industry can compete in a decarbonising world. All in, all done? Thanks for your time. Let's go and have a look.