29/05/2008 (All day)

Australian Greens climate change spokesperson, Senator Christine Milne, today said that last night's Estimates hearings revealed that the Government's climate programs are an unplanned, uncoordinated mess.

Senator Milne said, "At a time when the Government is rapidly losing credibility over the Fuel Watch scheme, it now appears that key climate programs are based on misread reports and a failure to properly understand the issues.

"Minister Wong admitted that the decision to means test the solar rebate was based on the opinion that the program had been too successful, with too many people taking it up, and the level of the test was justified by a report by the Alternative Technology Association.

"What Minister Wong did not realise until I pointed it out to her was that the ATA report had referenced net after tax income and her Government's decision was on gross income. In addition, the ATA report's income figures were only intended as background for a broader survey and the organisation says the figures should not have been used for a means test.

"Had the Government bothered to consult with the solar industry, which Minister Wong admitted they had not, they would have soon found out that the impact of this decision would be far greater than their misreading of this report had suggested.

"Minister Wong and the Government still appear to be confused as to how many installations would be funded by the program - 6,000 over one year or two. There remains an unexplained discrepancy in the sums to be spent on the program, with the Minister's insistence that $150 million was to be spent over three years dramatically at odds with Budget allocations.
Over the next two years they have only allocated $45 million to the programme - what has happened to the remaining $105 million?

"Minister Wong also admitted that the Government had not considered the flow on effect of this means testing decision to the Solar Cities program, and that they would now model that and other impacts of the likely collapse of Australia's solar industry. Minister Wong refused to offer compensation and described the destruction of livelihoods as 'disappointing' for some.

"If anything the Green Loans program is even more of a mess.

"It turns out that the program is not a loans scheme at all, but that the Government expects individuals to find a commercial loan on which they will then subsidise the interest repayments. This arrangement has not even been thought through to the stage of what might constitute 'low interest', what payback period is anticipated, and which loans providers might be approached.

"There is no explanation as to how the low-income families this program is targeted at will be assisted to find loans, and no modelling of expected take-up of the program.

"It is obvious that no analysis or thought had gone into what now can only be regarded as green-washing election slogans. This debacle can only result in a complete collapse of confidence from anyone interested in investing in solar and renewables in Australia."

For More Information:

Tim Hollo
Email: tim.hollo@aph.gov.au
Phone: 0437 587 562