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1 December 2016

Hon Pete r Wellington MP Speaker Parliament House Cnr Alice and George Street F3R ISBANE OLD 4000 Ta hkd, by lcaye R · 11 ;,i11 dcr incorporated. ' lt.·~n <.~ ! _.,..~·· .,..,.... . J- ....._ I 1 Dear Mr-Speaker i I • r. '

I a11 writing to you today to request t11 e referral to the Ethics ' mrnittee of a matter wrich I believe to be a deliberate misleading of the Parliament by the Member for Ashgrove and Minister for Education and Minister for Tourism and Major Events. Hon Kate Jo11es MP (llcnceiorth referred to as "the Member"], during Question Tirnc on 30 November 2016.

THE EVIDENCE

• In response to a Government Question Without Notice "the Mernbe( . is recorded in Ha•1sard on 30th November 2016 p 469 7 as stating the following

7h ey pro111ised //Je people of Queensland a recluclion of $330 in their fJOwer /Jtlls anc! we saw a 43 percent increase. ··

• I atta ch a copy of LNP's policy docun1entafon referred to by 'the Member' and draw Mr Speakers attention to an accurnte listing of the components which comprised the $330 quan+um referred to by 'the Member" namely:

·Lovver the co st of living /.Jy freezing car 1ego. 1efom1ing electricity tariffs and reducing Ifie cost ofvvate1 lo save QueenslwuJ fun11lies up lo $330 a year"

CONSIDERATION OF THE EVIDENCE

Mr Speaker consioerat on cf the evidence outlined above draws the fo ll owing logical conclusions.

Firstly. with rega1·d to the statement made by '·the Member " in [I] I contend ir making this statement ·'the Member' clearly at\en1pted to have the House believe the LN P's $330 ·Cost Of Living .. election cormnit'llent related solely to electr·icrty tariff pricing

Secondly the text of the LNP policy documentation outlined 1n [2] clearly attributes such savings to a number of policy reforms and as sucr1 is clearly not solely dependent upon electricity ta riff reform as ·rhe Mernoer' asserted to in her contribution to the House. MY CONTENTION

Mr Speaker. I contend:

• the evidence provided above clearly and defin1t1vely sl1ows 'tl1e Member" made a statement to the House which was both demonstrably false and deliberately sought to mislead the House - a clear breach of Standing Order 266 (2); and

• accordingly, based on the substantial and incontrovertible evidence prnvided above this matter not only warrants investigation by the Ethics Committee. but based on the evidence provided it warrants a finding of nothing less tha n the deliberate misleading of the Parliament.

Yours sincere ly

TIM NIC HOLLS MP Leader of the ' ,11.~ r. · '· ~ .l'.. n 1~ ,.. ~ i " '>ti ~ :., ' I Office of the ~~rt Iv1inister for Education and 1=1u u11 ~ l:md Gnveimu enl Minister for Tourism and Major Events

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Hon Peter Wellington MP Speaker of the Legislative Assembly Allee Street BRISBANE QLD 4000 ~ DearM'fker,

I refer to your correspondence dated 8 December 2016 and the attached correspondence from the Member for Clayfleld, Mr Tim Nicholls MP, received by your office on 01 December 2016.

The Member for Clayfield alleges I deliberately misled the House on 30 November 2016 during Question Time, in relation to Queensland power bills.

Mr Speaker, I strongly reject the Member for Clayfield's assertion.

There are three elements to be proven in order to establish that a Member has committed the contempt of deliberately misleading the House : 1. The statement must have been misleading; 2. The Member making the statement must have known, at the time the statement was made, that It was Incorrect; and 3. In making the statement, the Member intended to mislead the House.

I will deal with each of the elements In turn.

1. The statement must have been misleading

The statement referred to you by the Member for Clayfield is as follows:

They promised the people of Queensland a reduction of $330 In their power bills and we saw a 43 percent increase. 2

Members of the LNP, including Mr Nicholls, have referred to a $330 saving to households arising from their electricity reforms.

On 16 June 2011, the Member for Clayfleld and then Treasurer, stated in Parliament:

"Under our plan, the LNP would be able to offer Queensland households lower power bills than Labor. Our plan, which Includes abolishing the ambulance tax and incentives for reduced electricity consumption, will save the average household around $250 and up to $330 a year - $250 to $330 a year in savings on electricity

bills. II

1lenclosel herewith a copy of page 1962 of Hansard dated 16 June 2011 for your reference.

Furthermore, I am aware that during the 2012 election campaign, the former Premier distributed flyers in Ashgrove which contained the statement:

''The LNP will reform electricity tariffs, saving average Queensland/am/lies up to $330 a year."

This direct quote from LNP campaign material was included in a media release put out by the former Minister for Energy and Water Utilities, Stephen Robertson, dated 30 November 2011. 1lenclosel a copy for your reference.

The Member for Clayfield contends that I was seeking to have the House bell eve the LNP's 'Cost of Living' election commitment related only to electricity pricing.

Mr Speaker, at no point did I refer to the "Cost of Living election commitment" nor did the context suggest that was my purpose in making the statement. Mr Nicholls has no basis for this assertion.

It is well documented that the LNP, including Mr Nicholls himself in the Parliament on 16 June 2011, sought to lead Queenslanders to believe they would save $330 on electricity under a Newman Government, when in fact Queensland families saw an overall increase in electricity prices of 43%.

I have !enclosed! the following media releases which document the 43% price rise:

o 'Queensland Competition Authority releases final decision into regional electricity prices,' Hon MP, 31 May 2016. o 'Power prices stability key focus of response to QPC report,' Hon MP; Hon MP; Hon Mark Bailey MP; 30 November 2016.

The QCA Determination for 2016-17 shows the Pala szczuk Government's efforts to stabilise electricity prices are working. 3

Under the first two years of the Palaszczuk Government:

o The average annual increase for households will be 1.2 per cent, which is below inflation and compares to an increase of 16% per cent under the full term of the LNP Government. o Electricity prices for large regional business customers have increased by 4-6 per cent per year on average, compared to 15 per cent under the full term of the LNP Government. o Electricity prices for agricultural customers hCJve Increased by 6.2 per cent per annum compared to 33 per cent over the full term of the previous LNP Government.

In the context of the above material, I believe the statement I made to be true and I submit, Mr Speaker, is not misleading.

2. The member making the statement knew at the time the statement was made that it was Incorrect

Mr Speaker, at the time of making the referred statement, I believed my comments to be accurate.

Based on the material referred to above in relation to the factual accuracy of the statement, I was, and continue to be, of the opinion that the statement I made In Parliament is co rrect.

3. In making the statement, the Member Intended to mislead the House.

Jn order to prove that a Member intended to mislead the House, It must be established that the Member deliberately made the statement, knowing it to be false with the intention of misleading the House.

My intention in making the statements referred to you, Mr Speaker, was to demonstrate the former LNP Government broke its promise to deliver lower power bills to Queensland families.

I had no intention of leading the House to "believe the LNP's $330 'Cost of Living' election commitment related solely to electricity tariff pricing", as put by the Member for Clayfield.

My intention was to highlight the former Newman Government's record for broken promises and, in this case, higher power bills for Queensland families.

I believed the statements to be tn1e, and had reasonable grounds for so believing. It Is my continued assertion that the statements I made were not factually untrue or misleading, and that I did not believe them to be misleading either at the time I made it or at the present time. Furthermore, I give my assu rance to you, Mr Speaker, that it was not my intention to mislead the House. 4

Based on the information I have provided, I again strongly reject the assertion that I have Intentionally mislead the House. I trust this Information assists in resolving this matter.

Minister fo Tourism and Major Events Member for Ashgrove

·' 1962 Approp. Bills; Comm. Amb. Cover Levy Repeal & Rev. & O'r Leg. A'ment Bill 16 Jun 2011

An LNP government would immediately freeze the standard domestic tariff, tariff 11 , while allowing the fixed charge to rise in accordance with the QCA recommendation. By freezing tariff 11, average households using around six megawatt hours per year could save around $120 on their power bills in 2012-13-that is $120. It is the difference between being 'can-do' and this long-term Labor government. In addition, an LNP government will abolish the cu rrent ridiculous pricing system that allows retailers to charge you more if you use less power. That is right: Queenslanders who use less power pay more under this tired Labor government. We will achieve this by abolishing the so-called benchmark retail cost index. By abolishing the benchmark retail cost index, power bills may well be reduced even further. I might add that, when the Queensland Competition Authority last reported on the 6.6 per cent pay rise under Labor's failed BRCI mechanism, the LNP raised the urgent need for electricity tariff reform. Labor is responsible for soaring power prices and it could have done something long ago to fix this problem. In making this announcement today, I am hoping Labor members steal this policy. We urge them to. Just as they have with our announcement on water prices, policing on the Gold Coast, the GPS tagging of sex offenders and abolishing the ambulance tax, I am urging them to pinch this idea. If Labor acted today to freeze tariff 11 at 2010-11 levels and only allowed the fixed cost to increase in accordance with the QCA recommendation on 1 July, average families could save , we estimate, up to $70 this year compared to Labor's proposed price rise-I repeat: a saving of $70 this year compared to Labor's proposed price rise. Our challenge to the government is to steal th is policy: do not be proud, do not be afraid to accept that you have failed Queenslanders by not dealing with rising power prices, do something to make a difference and do it now. The LNP is also affirming its continued support for abolishing Labor's insidious ambulance tax. This is a tax that should never have been applied. It is a tax that hit those who least could afford to pay it and it is one that the LNP argued against when it was introduced by the Labor Party. As conceded by the government, this measure will save Queenslanders an additional $114 on their power bills on top of the savings we would introduce. As I have already discussed, the LNP is resolute in opposing Labor's carbon tax. The carbon tax will have a significant impact on electricity prices and the government has no plan to deal with this problem. If Labor forces a carbon tax on Queenslanders, we will require electricity and water retailers to clearly show the full carbon tax component on power and water bills-Queenslanders will know how much they are paying for Labor's carbon tax policy. As a final measure to drive down the cost of electricity, an LNP government will work with the energy industry to pursue optional initiatives to give customers an incentive to reduce electricity consumption. Options that customers might want to consider include the installation of smart meters for those who choose to have them installed and the possibility of introducing a new lower tariff 11 economy rate for households who choose to connect a range of appliances to interruptible power supply devices. These customers would get a lower overall cost in exchange for small interruptions to the power used in peak periods for equipment like air conditioners. Under our plan, the LNP would be able to offer Queensland households lower power bills than Labor. Our plan, which includes abolishing the ambulance tax and incentives for reduced electricity consumption, will save the average household around $250 and up to $330 a year-$250 to $330 a year in savin~s on electricity bills. If Labor steals our policy today-and we encourage it to do so-Queensland families, on an average bill, could save another $70 on top of those savings before the next election. The contrast could not be clearer. Under Labor, reform has stalled. Since 2007 Labor has sat on its hands while the BRCI has failed Queenslanders. Labor failed to act in 2009 when the Queensland Competition Authority recommended a change to the BRCI. It failed to help Queenslanders when the cost of generating electricity was actually falling. Every day Labor wastes is a day of lost opportunity for Queensland. Every day Labor wastes is a day that Queenslanders are being forced to pay spiralling government taxes and charges. The LNP will forward plan, not live for the moment. We will save Queenslanders money, we will deliver more by getting action on the basics and cutting waste and, importantly, we will oppose Labor's outrageous slug on homeowners through its 125 per cent increase in transfer duty. The dirty shame of Tuesday's budget-the black rabbit that the Treasurer pulled from his hat­ was a tax that will cost many Queenslanders thousands of dollars a year. Despite what the government says, regardless of how it spins the facts, an increase in transfer duty will cost Queenslanders dearly. If you do not believe me, here is an example: with average homes in Brisbane selling for $515,000 and the average home being sold every seven years, the state government's transfer tax will cost the owners of those homes-will cost residents-$2,315 a year. At $2,315 a year, that is almost twice the cost of council rates . This government is so out of touch that it told journalists that homebuyers could simply add this tax to the mortgage. While the Treasurer might be able to keep adding bills to the Queensland mortgage, real families cannot get the loans to do that. It is just another sign of this government's lack of real-world experience. 1/1212017 Lights out on electricity policy as LNP breaks election commitment - The Queensland Cabinet and Ministerial Directory Media release Energy and Water Utilities Queensland Government The Honourable Stephen Robertson

Lights out on electricity policy as LNP breaks election commitment

The LNP has done nothing but fumble through excuses today as both Campbell Newman and Tim Nicholls tried to explain their key electricity policy backflip to Queenslanders, Energy Minister Stephen Robertson said.

Mr Robertson said the LNP were today exposed for what they are - all slogan and no substance.

"They promised the people of Queensland they would immediately freeze tariff 11 if elected saving customers $120 a year," he said.

"This is not what the LNP Resources and Energy Strategy says which was released just two weeks ago which induded a sneaky disclaimer:

... immediately freeze the standard domestic tariff (Tariff 11) providing savings of around $120 a year on power bills compared with Labor until replaced with an acceptable cost-reflective system. (LNP Resources and Energy Strategy, page 34)

"The Bligh Government's electricity tariff reforms come into effect on the 1 July 2012 making the LNP's promises of savings null and void.

"The Opposition Treasurer even conceded the Bligh Government's electricity price tariff reform would deliver bigger savings."

"There may well be greater savings than the $120." (Nicholls, Courier Mail 30111111)

Mr Robertson said he was surprised Campbell Newman and the Opposition Treasurer had backflipped on a backflip and today were still touting the savings.

"The LNP cannot explain how they will deliver $120 a year off power bills.

"Further to this Campbell Newman is distributing flyers in Ashgrove saying:

The LNP will reform electricity tariffs, saving average Queensland families up to $330 a year.

"In other materials they say these savings are from a suite of reforms not just reforming electricity tariffs.

The LNP needs to stop misleading the people of Queensland and immediately withdraw this dishonest political propaganda.

Queenslanders deserve better from an Opposition too lazy to show up to worl<, too dishonest to be truthful about their election commitments and too weak to stand up to the faceless men who are really running the show.

Media contact: Zoe Russell· 0437 436 914

ENDS

http://statements.qld.gov.au/StatemenVld/77922 1/1 1/13/2017 Queensland Competition Authority releases final decision into regional electricity prices • The Queensland Cabinet and Ministerial Directory Media release Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply Queensland Government The Honourable Mark Bailey

Queensland Competition Authority releases final decision into regional electricity prices

The Queensland Competition Authority (QCA) today released its final determination on regulated retail electricity prices for regional Queensland in 2016-17.

Minister for Energy Mark Bailey said the final determination was proof that the Palaszczuk Government's efforts to restrain and stabilise power prices were working.

'The QCA determination ensures that under the first two years of the Palaszczuk Government, the average annual increase of the residential price of electricity will only be 1.2%," Mr Bailey said.

"The average annual increase of the small business price of electricity will be 3.8% under the first two years of the Palaszczuk Government, providing further proof that prices are stabilising after 43% increases over the term of the Newman-Nicholls Government."

The QCA final determination means that in 2016-17, a typical residential bill will rise by 2.8% with typical small business customers seeing a rise of 11.2%. However, the impact on individual customers will vary case by case depending on their consumption.

Mr Bailey said that this represented a change from the draft determination.

"While this change was unexpected, we respect the independent price setting process of the QCA," he said.

"Part of the increase relates to increased demand for electricity in Queensland, which drive higher wholesale prices.

"However, the report revealed restrained network costs had held down the increase in electricity prices.

"This only happened because the Palaszczuk Government intervened last year directing Energex and Ergon to not appeal the Australian Energy Regulator's decision to curb network costs.

'That direction would not have been possible if our power assets had been sold off under the LNP.

"Also, for the first time since lhe QCA started determining electricity prices 9 years ago, the fixed charge will reduce.

"This is good news for customers with low consumption, with almost one-third of regional retail customers receiving lower annual bills in 2016- 17 compared to 2015-16."

Mr Bailey said the government is proactively working with the business and agricultural sectors to help identify ways to manage electricity price impacts.

"This includes working with Ergon to improve information and accessibility of advice to help ensure these customers are on a tariff that best suits their needs - minimising their costs to the greatest extent possible," he said .

"We are committed to ensuring that regional customers pay a similar price to those in south east Queensland.

"This year we will spend almost $500 million subsidising the cost of electricity in regional Queensland. That investment supports 700,000 regional Queensland customers."

ENDS hllp://statements.qld.QOY.au/SlatemenV2016/5/31/queensland-compeUtion-authority-releases-final-decision-into-regional-eleclricity-prices 1/2

1/1312017 Pooer price stability key focus of response to QPC report - The Queensland Cabinet and Ministerial Directory Media release JOINT STATEMENT Premier and Minister for the Arts The Honourable Annastacia Palaszczuk Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport The Honourable Curtis Pitt Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply Queensland Government The Honourable Mark Bailey

Power price stability key focus of response to QPC report

More than 150,000 additional Queensland families will receive a rebate on their electricity bills, while concessions for pensioner, veterans and seniors' card holders and the Solar Bonus Scheme will be retained.

Premier Annastacia Palaszczuk said these measures, in response to recommendations from the Queensland Productivity Commission's Electricity Pricing Inquiry Final Report, will stabilise electricity prices.

The Premier said the Queensland Government's response to the QPC Report was another step in delivering price stability to electricity consumers following the 43 per cent increase in power bills under the Nicholls-Newman government.

Key elements in the government's response to the QPC Report include:

• providing additional funding starting at $48 million per annum (or $170.1 million to 2019-20) to extend the electricity rebate to Commonwealth Health Care Card Holders so that an additional 157,000 low-i ncome Queensland families are better supported. From 1 January 2017, low-income households and families will become eligible to receive around $330 a year to help pay their energy bills; • retaining the electricity rebate for holders of a Pensioner Concession Card, Veteran Affairs Gold Card or a Queensland Seniors Card; • supporting regional business customers by providing $10 million over two years lo deliver improved access to digital metering, greater information about tariff options and co-contributions to help customers invest in operation and equipment changes to manage bill impacts; • maintaining our commitment to building the uptake of renewable energy in Queensland; and • identifying improvements to the governance arrangements for the government's energy businesses to strengthen shareholder oversight.

"My Government has already taken firm action to stabilise electricity prices," Ms Palaszczuk said.

The Government's issued a directive to distributors Energex and Ergon Energy not to challenge an Australian Energy Regulator decision on network revenues. A challenge that would have seen bills increase if il had been successful.

"Due to this action, under the first two years of the government the average annual electricity price increase for households will be just 1.2 per cent," the Premier said.

"This compares to an increase of 43 per cent over the term of the Nicholls-Newman Government. For small businesses, the average annual increase is just 3.8 per cent, compared with an increase of 21.9 per cent over the term of the previous LNP Government. This is proof that the Government's efforts to restrain and stabilise electricity prices are working," Ms Palaszczuk said. http://statements.qld.

"We deliberately set wide-ranging terms of reference for the Inquiry so that all options to put downward pressure on prices could be considered," Mr Pitt said.

"Issues that we asked the QPC to consider included the competitive electricity market, productivity growth, efficiency and reliability, environmental outcomes, vulnerable customers and responsible management of the state's finances."

Mr Pitt highlighted a $10 million assistance package over two years to support business customers in regional Queensland, including farmers and irrigators, as well as energy-intensive businesses such as traditional manufacturing.

He said the package would provide a range of measures to support regional businesses, including better access to digital metering and more information on tariff options and bill impacts to help customers reduce their electricity costs.

Mr Pitt said funding of $48 million a year, representing a funding increase of $170.1 million over the forward estimates to 2019-20, had been allocated to fund the government's response initiatives.

Energy Minister Mark Bailey also welcomed the QPC report and said the government had also accepted a recommendation to refonn the Queensland energy concessions framework to improve support to vulnerable customers.

"These changes will provide support to an additional 157,000 low-income families, bringing the total number of households assisted in Queensland to approximately 688,000 in 2016-17," Mr Bailey said.

"Commonwealth Health Care Card holders and asylum seekers will be eligible to receive the electricity rebate.

'They can apply to their retailer for the rebate from 1 April 2017, with payments back-dated to 1January2017."

Mr Bailey said the government's decision not to accept a small number of the recommendations was supported by a sound policy rationale based on strategic goals and the need to rnmain flexible and responsive to emerging sectoral challenges in the future.

"In particular, the government does not accept recommendations concerning generator rebidding behaviour in the wholesale electricity market, has ruled out early closure of the Solar Bonus Scheme, and will not remove access to electricity concessions for Queensland Seniors Card holders," he said.

Mr Bailey said a number of recommendations will require further consideration by government, including those relating to the Community Service Obligation (CSO) and competition in regional Queensland.

A government response to the QPC's report on Solar Feed-In Pricing is due shortly.

Contact:

Treasurer's Office 0447 316 432 I 0419 945 546

http://statemenls.qld.gov.au/Statement/2016/11/30/power-price-stability-key-focus-of-response-to-qpc-reporl 212