Mr RIPOLL (3:11 PM) —My question is to the Minister for Resources and Energy. Minister, will you inform the House about the work of the Ministerial Council on Energy and, in particular, the progress of the rollout of smart meters?

Mr MARTIN FERGUSON (Minister for Resources and Energy and Minister for Tourism) —I thank the honourable member for Oxley for this question because he, like everyone on this side of the House, knows the importance of energy market reform. Energy market reform is clearly about microreform in Australia. It is not just about the bottom line for consumers and the business community. It is also about us putting together a national energy market that is central to our ongoing debate about climate change in Australia. In that context, I am pleased to say that the ministerial meeting was held in December last year, less than two weeks after the appointment of the Rudd Labor government. This important meeting focused not only on further progress in microeconomic reform but on putting together an ongoing process which guarantees proper attention to reducing energy costs in Australia through the establishment and finalisation of our national gas laws. It was also about locking in, once and forever, the establishment of the Australian energy market operator.

In the context of this ongoing energy reform, can I also report to the House that, following a cost-benefit analysis prepared for the Ministerial Council on Energy, not only are we now in the process of finalising the minimum functionality for smart meters so as to guarantee the best possible consistency across all state and territory governments but, perhaps more importantly, state governments are now giving consideration to the commencement of the rollout of the smart meters. This process is exceptionally important because the cost-benefit analysis prepared for the ministerial council says that the rollout of smart meters can effectively represent savings to the Australian economy as high as $4 billion. When you think about the cost pressures on Australian consumers at the moment, because of the failures of the other side of the House, you can understand that better consumer information on the use of energy can assist them in managing the pressures that they confront as ordinary households. It is about better education and opportunities to use energy more smartly.

It is also smart for business in Australia. One of the biggest challenges to energy providers in Australia in the generation of capacity is the pressure put on the Australian community in terms of peak power. It effectively means that at particular times of the year we have energy requirements far in excess of what is required for the greatest part of the year. By way of example, in some parts of the network about 20 per cent of infrastructure capacity is used for less than one per cent of the year.

So, with the growing demand for energy in Australia, if we can actually assist in rolling out smart meters and locking in once and for all the national energy market, we can take the pressure off investors in Australia for additional energy capacity. Interns of the COAG process, which is about state and federal governments not only working together but also working in cooperation with the private sector, the ongoing work of the Ministerial Council on Energy is exceptionally important.

In conclusion, we will commit, in cooperation with the state and territory governments and the private sector, to put in place these smart meters. They are not only smart for consumers but also good for industry and for climate change and the ongoing requirement to reduce greenhouse gas emissions.

Mr Rudd —Mr Speaker, I ask that further questions be placed on the Notice Paper.