Press conference with Senator Don Farrell and SA Minister for Energy and Mining, Tom Koutsantonis, Adelaide
CHRIS BOWEN: South Australia leads us, but Australia also leads the world - one in three houses having solar panels on their roofs, that is just unthinkable in most countries around the world; it's us and then [indistinct] and then countries that come after us. That's a wonderful thing.
The irony is, the solar panel, the modern solar panel is also effectively an Australian invention, invented at the University of New South Wales and Australian National University, that technology that you see in more than 90 per cent of the world's solar panels comes from Australian ingenuity.
Yet, apart from this building, we don't make solar panels in Australia. Over the last decade we've put 60 million solar panels on our roofs, and 1 per cent of them have been made in our country, an Australian invention. It is unthinkable that we let that continue like that.
We have a big task in front of us, to get to 82 per cent renewables in our National Energy Market between now and 2030, which is now 83 months away, and it is unthinkable that over the next seven years we let that situation continue. We put 60 million solar panels on our roofs in the last 10 years, we're going to have to put another 60 million on our roofs over the next seven years; we're going to do what we've done, do it again, and do it fast again. And I just can't conceive of a situation where we would say it's just fine that only 1 per cent of those would come from our country.
And we have to have a plan, and we do have to a plan to turn that around and fix that. 85 per cent of the world's solar panels are currently made in another country, in China, and over the next few years that is estimated to rise to 98 per cent over the next three or four years. That is not sustainable.
As I say, when you think about energy security, there's no geopolitical crisis, there's no war, there's no problem that's going to stop sunlight hitting our land mass. More sunlight hits our country than any our country in the world. We have the best solar resources in the world, but for our energy security, we also need to be making more of our renewable energy infrastructure in Australia, including solar panels and batteries.
So that's why I'm delighted to be here to launch this expansion today. Glenn, thank you for your investment, your faith, your courage, in making that initial investment those years ago and really doubling down with more investment. It's a wonderful country, it's a wonderful company it is a wonderful country as well, but it's also a wonderful company. Thank you for noting that I visited before and my interest, but it goes broader than that.
As Energy Minister, of course I can't have favourites, I have to treat everybody equally, but I will disclose that I have Tindo solar panels on my roof. Australia wouldn't mind me also disclosing that the Prime Minister has Tindo Solar panels on his roof, or at least he did before he moved, he's back in public housing now. I'm not sure what solar panels he has currently, but in Marrickville at least, he has Tindo Solar panels on his roof, and it's a wonderful a wonderful product. And I want to see this firm grow and prosper, and I want to see this industry grow and prosper. I want to see this firm do well, but Glenn, I have to tell you, I want to see you have plenty of local competitors as well.
I want to see you have to really work hard against other Australian manufacturers of solar panels in making your case. I'm very, very confident that in the coming years that will be the case with the right policy settings, and we have those policy settings, the National Reconstruction Fund, I chair the Quad - Australia, India, Japan and United States Energy Ministers meetings, and basically all we talk about is how we can make more of our renewable energy infrastructure in our own countries and supply each other with what we call "friendshoring", Australia making more here and supplying the United States and vice versa.
This is our important national endeavour. As I said we only have 83 months now to 2030, that is not long. It will go down, it will go past like that. Our daughter's starting university in a couple of weeks. My wife and I dropped her off at kindergarten a couple of weeks ago. She has no business going to university next week. I don't know how those 12 years went so quickly.
My point is those 12 years went really quickly. The next seven are going to fly by. We don't have time to waste. We've got to get on with this job, and we are getting on with the job. You're getting on with the job here, employing more people, making more solar panels; we're getting on with the job in the country, Peter and Tom are getting on with the job in South Australia in a most passionate and forward looking way, and together we will get this job done.
It's my pleasure to be back here to declare the new expanded Tindo Solar open for business. Thank you.
TOM KOUTSANTONIS: Can I first also acknowledge the Kaurna people and thank them for their custodianship of the land over the millennia that they've been here. Also Kane Thornton from the Clean Energy Council and my very good friend Senator Don Farrell.
South Australia has achieved another coup. Last calendar year South Australia produced 70 per cent of its power from renewable resources. That's the highest of any jurisdiction anywhere in the world. If we were a country in our own right we'd be leading the global change towards renewable energy, and that is why South Australia has been chosen as the next location by IREC of the world's largest renewable conference here in South Australia. Three and a half thousand delegates will be in South Australia in the next two years to talk about the renewable challenges that are facing the world.
As Minister Bowen just said earlier, we have an enormous challenge internally here in Australia to decarbonise. South Australia should meet that challenge within the next three to five years at the rate that we're growing at about 5 per cent per year of penetration, along with, of course, our world leading changes that we're making through our Hydrogen Jobs Plan to try and convert traditional thermal generation, that is generators that spin using hydrogen. This is a dramatic breakthrough. It will be the largest kind of anywhere in the world. South Australia continues to push that envelope, whether it's the world's largest battery for which we were initially mocked, now it is the template for every jurisdiction. Now, we're moving into hydrogen.
This conference coming to South Australia is a recognition of the work that we've done, and most importantly that we finally have a partner in the Commonwealth Government.
Traditionally we've done this on our own. We've had Prime Minister's come here and mock our investment in renewable energy, we've had Prime Minister's openly attack our investment in renewable energy. Finally we have a Commonwealth Government that is partnering with us in renewable energy, and Senator Farrell, thank you very much for the work that you've done to try and get this conference here, and Kane to you and your organisation, thank you. South Australia is the ideal choice to have this conference. The last one will be in Madrid, the next one will be in Adelaide. It's a great coup for Australia, and it's a great coup for South Australia to have this conference here now.
So I pass over to Don to say a few words and then to Kane.
DON FARRELL: Look, just to congratulate my good friend Tom Koutsantonis for getting this conference here next year. Australia wants to be a renewable superpower, and South Australia is leading the way for the rest of the country, and I'm very proud that a new Federal Albanese Government with my good friend Chris Bowen in charge of energy policy, we are leading the way for the future, and I'm very proud that an Albanese Labor Government is helping South Australia continue its fantastic development in this area. Thank you very much for coming today.
KANE THORNTON: It's fair to say Australia, and of course South Australia has led the world in their transition to renewable energy, and that's why we're incredibly pleased to be a supporting partner in delivering the international renewable energy conference here in Adelaide in April 2024. This conference is an opportunity for us to show case Australia's leadership, the leadership in deployment of roof top solar, of energy storage, and of course now the new hydrogen economy, and Australia has a lot to share with the rest of the world. They are in awe of both the renewable energy resources we have here in Australia, but also the pace of the transition and the leadership that's been on display here in Australia over the recent period.
We also have a lot to learn internationally, to bring in the smart intelligence, the IP, the researchers, and of course of the investors here into Australia to make sure that we continue to accelerate the transition towards a renewable energy future, and to secure Australia's role as a clean energy superpower.
So we look forward to being back here, of course, in April 2024, to hosting many thousands of the world's leaders here in Adelaide to discuss this incredible energy transition, to showcase Australia's leadership, the leadership we now have in both policy and politics clearly here in South Australia, and of course now from our national government, positions Australia to show the world how to transition to clean energy. Thanks very much.
TOM KOUTSANTONIS: Any questions?
JOURNALIST: Just about the bus strikes.
TOM KOUTSANTONIS: Bus strikes? Thank you very much. What would you like to know?
JOURNALIST: I guess from next week, they're not going to be accepting fares and they're not going to be working overtime. What do you make of that?
TOM KOUTSANTONIS: Look, I defend the right of any trade union to take industrial action. We're a free democratic society, and trade unions are entitled to withdraw their labour and embark on industrial action. What I'm demanding of not only, Kelsian, the operators Torrens Transit, but of the Transport Workers Union is that they continue to bargain on good faith.
Now, I've sent representatives of the South Australian Government to the last engagement. It's fair to say I was not too pleased with the engagement of the company at that last round of negotiations, I expected to see decision makers at the next round of enterprise agreement negotiations, and I want to see a resolution, and again I point out, this is a problem with a privatised bus system. The government here is a spectator. The government here is operating and paying for a system that is an essential utility that's run by a private company with a contract signed by a previous Liberal Government that does not have in it the ability to keep on passing on wage increases when we're in an inflationary pressure environment, where wages aren't going up, the cost of living is going up. These drivers are making legitimate claims, but they need to be reasonable, and so does Kelsian and Torrens Transit, and they need to be reasonable as well.
So I want them to work together. There is another meeting coming up on Monday. I expect there to be fruitful discussions there, and I expect them to negotiate in good faith.
JOURNALIST: Is Torrens Transit being too stubborn, or is the union asking too much?
TOM KOUTSANTONIS: I think that both parties are attempting to see what they can get away with the most. I mean Kelsian want to get away with this, with paying the least amount they possibly can, and the union want the biggest pay increase it can possibly get. But in between all that is the commuters, the public.
Now, we require people to catch public transport, because; one, it helps us decarbonise our economy, it saves us on road infrastructure, it saves us on road maintenance, it saves us having to build more bridges and more grade separations, so every time someone catches a train, tram or bus, we all save as a community. So what we want to see is these two parties come together and negotiate a fair wage increase and fair conditions.
Now, the South Australian Government has stepped in and is running a trial to make sure that we can provide the appropriate security for our bus drivers, that is new screens, we'll be developing those in negotiations with the union, in negotiation with the drivers to make sure that they feel safe and secure in their workplace, including extra patrols, including extra measures on our buses, trains and trams to have security for our patrons and our bus drivers.
What we expect from Torrens Transit is that they of course offer fair wage increases, and we expect them to get together and make sure that they negotiate in good faith.
JOURNALIST: How confident are you that there will be a resolution before Tuesday? You mentioned there is a meeting on Monday, but considering, I guess there was all hope that it will be resolved yesterday, and it fell well short of that, how confident are you that there will be a resolution?
TOM KOUTSANTONIS: I've made it very clear to Torrens Transit I expect there to be decision makers at the next meeting. I expect there to be a good faith negotiation to occur, and if it doesn't occur, they'll have the South Australian Government to deal with.
JOURNALIST: Did you expect there would be a resolution yesterday?
TOM KOUTSANTONIS: No, look, I used to work for Don Farrell, and we were in the trade union together, there's negotiations that go on. When you negotiate an enterprise agreement there's back and forth, but at every stage there should be decision makers in the room who can agree, and that's what we want.
JOURNALIST: This hasn't been a process that's been developing somewhat overnight, it's been months in the making?
TOM KOUTSANTONIS: Most enterprise agreements are.
JOURNALIST: So why are you so confident that there will be a resolution?
TOM KOUTSANTONIS: I think now that Torrens Transit and the Transport Workers Union know that the public's patience is wearing thin, as is the South Australian Government's?
JOURNALIST: [indistinct]
TOM KOUTSANTONIS: Yes.
JOURNALIST: [indistinct]
TOM KOUTSANTONIS: Unfortunately, unlike our trains and trams, we made a commitment at the last election that we would undo that privatisation contract, and we were able to write to every single bidder before they bid saying, "Buyer beware. If you enter into contracts to purchase our trains and trams, if an election is held and Labor is elected, we'll reverse that contract."
These bus contracts have been privatised since 2002, or 2000, last century. So it's a bit harder to undo these contracts. This current contract runs for another eight years, but we are conducting a body of work now to look at the feasibility of returning our bus network back into public hands, and I would say in caution private operators, their conduct now is under scrutiny.
JOURNALIST: Commuters will be pretty happy if they get free bus fares next Tuesday?
TOM KOUTSANTONIS: Well, I mean, look, I support the right of trade unions to have industrial action. My biggest concern, of course, is when they have a full blown strike, because it's not Torrens Transit that pays, it's the commuters who support public transport and support using our buses, trains and trams. They're the ones we need to encourage to use more of it.
So strike action, whenever there's strike action, in my opinion, there's been a failure, a failure from the union and a failure from the employer. I want to see good faith negotiations continue.
JOURNALIST: [indistinct] Is there anything the government plans to do next week? Obviously it's a very different type of industrial action, but is there any intervention the government wants to do?
TOM KOUTSANTONIS: I don't think so. I think the union's industrial action this time is slightly different from the one they did previously, not withdrawing their labour, they're not offering over time services, and their not collecting fares. So this is a different type of industrial action, that is attempting to maintain whatever their industrial tactics may be, but I don't think that requires any government intervention.
JOURNALIST: If they are withdrawing labour though, would there be a chance that there might not be enough bus drivers, or there might be a shortage?
TOM KOUTSANTONIS: I've not had that advice in my department.
JOURNALIST: I guess with the IREC announcement, how influential is this conference on the global stage and what kind of big names can we expect to see here in South Australia in 2024?
TOM KOUTSANTONIS: Well, look, I mean three and a half thousand delegates coming to Adelaide is a dramatic impact on the South Australian economy, on our visitor economy. South Australia's one of the most beautiful places in Australia, and quite frankly, the rest of the world is in awe of what we are doing with renewable energy.
You look at what our minimum demand is in South Australia on any one day, and the data today is probably about 100 megawatts, which means that most of our power's been provided to all of our industrial uses through solar energy through to Tindo Solar.
So jurisdictions are looking to transition, and they want to learn from us. We also want to make sure that this renewable future isn't just about providing renewable energy, it's about jobs, and manufacturing jobs, which is why this event today is so important.
I mean Chris Bowen has made a very big point about this, and that is the transition itself to renewable energy is important for the country's future, but it's also an opportunity for us to create jobs, and the Commonwealth Government's ambition isn't just for us to transition to a net zero future, it's also about creating jobs, and good jobs, high paying jobs, jobs that keep people in Australia, keep people in South Australia, developing that new IP. And the Bowen agenda on renewable energy is one that South Australia's been waiting a long time, for someone to come along with that type of vision. We've been continually fighting with the Commonwealth Government about this transition.
You might remember former Prime Minister, Scott Morrison, turned up to Adelaide and called the big Tesla battery, "the big banana" thinking it was a tourist attraction. It is now the template around the world. Now we have a Commonwealth Government that's standing alongside us, helping us, and that makes a big difference, and we wouldn't have gotten this conference if it wasn't for the leadership of Kane Thornton, Chris Bowen and Don Farrell. And the Prime Minister's personal endorsement of this conference not only coming to Australia but coming to South Australia and Adelaide is a big tick for us, so I want to thank them, and I think the people of South Australia will get the benefits of it.
JOURNALIST: [Indistinct]
CHRIS BOWEN: Well, of course, the Prime Minister will be in PNG over the weekend, so that's a very important visit. I would fully expect Papua New Guinea to engage in foreign affairs in relation to their interests and their values, which is exactly what Australia does as well. Papua New Guinea is a very important partner for Australia. I know that will continue, I know the relationship between the two Prime Ministers is in very good working order, and I'm sure this will be a very productive visit by the Prime Minister.
JOURNALIST: What do you make of the news of Sun Cable going into voluntary administration?
CHRIS BOWEN: I remain very upbeat and excited about Sun Cable's future. This is primarily a commercial decision about structure, and about the way forward. It doesn't represent either of the big investors' behalf or anybody else's behalf any sort of lack of faith in the future of Sun Cable. It's a commercial change of structure. Sun Cable has enormous potential for Australia as a renewable energy export powerhouse. I remain a big supporter of the project, and I certainly hope that they make their corporate decisions and then get on with the job.
JOURNALIST: Does it send a bad message for the ability of any future big projects?
CHRIS BOWEN: No, I don't think so. Companies are going to change their structure from time to time, investors are going to change their decisions. Certainly I've been speaking to very senior people in Sun Cable over the last 24 hours, they tell me that there is absolutely no reduction in their ambition, there is no change in their plans for this to be going forward as a very important investment in Australia. It's a change of approach and corporate structure, but of course in that regard that is entirely a matter for them. I make no comment about different models, different approaches that various people might take. I do make a comment about the Federal Government's support for Australia being a renewable energy export powerhouse, and Sun Cable continuing to be a very important part of those plans.