Monday 14 December 2025

The cost to taxpayers of the Anthony Albanese’s approach to ‘net zero’ energy is climbing at a rapid rate, Member for Mallee Dr Anne Webster said, after it was revealed on Friday that Federal Labor committed to an uncosted subsidy of Rio Tinto’s electricity bill for a decade to save 1000 jobs at a NSW Hunter Valley aluminium smelter.

 Dr Webster said she dreaded the imminent mid-year budget update (MYEFO) that is likely to show program blowouts and broken promises galore.

 “Australians are not getting the ‘future made in Australia’ they bargained for, with the Australian newspaper estimating the jobs created are costing more than $1 million per job,” Dr Webster said.

 “Labor are adding fuel to the cost-of-living crisis with their reckless spending. Only Labor could have spent $1bn of taxpayers’ money and have nothing to show for it. Even if 850 jobs will be created at some unknown point in the future, Labor will have spent $1 million of taxpayer funds for every one job created.

 “The National ‘Reconstruction’ Fund is nothing more than slush fund for Labor’s pet projects.  Labor’s desperation and deception to make their energy targets look like they are working know no bounds, and frighteningly that means more debt for the current and future generations of taxpayers.”

 The Australian newspaper revealed 850 jobs are projected to be created from the first $1.02bn invested by the National Reconstruction Fund, at an eye-watering cost of more than $1m per job.

 Meanwhile, the Albanese Government recently revealed its tax discount for electric vehicles will surge 15 times higher than the initial cost estimates to $1.35bn this financial year.

 The Cheaper Home Batteries Program cost has also blown out for an initially budgeted $2.3 billion to 2030, tripling an extra $4.9 billion to $7.2 billion over the next four years.

 On Friday the Prime Minister and Industry Minister Tim Ayres unveiled an in-principle commitment with the NSW government and the multinational company to provide the smelter with discounted energy, likely through the Snowy Hydro scheme.

 Dr Webster ridiculed the claim by Industry Minister Tim Ayres that subsidising Rio Tinto’s energy bill for a decade “puts a stake through the heart of the argument” that the shift to renewables was making manufacturing unsustainable.

 “This is a farce – how can you say renewables are not hurting manufacturing, when it takes subsidies to keep these jobs in Australia?” Dr Webster said.

 “Meanwhile, small businesses are falling over at record levels, with business closures doubling since Labor took office, having inherited record low insolvencies in 2022 when the Coalition left office.  Why are the jobs of bakery and café owners, shop assistants and of course self-employed businesspeople and farmers with skyrocketing power bills less important than people at a coastal factory?”

 Dr Webster noted the comments of Victorian Energy Policy Centre economist, Bruce Mountain on Minister Ayres’ claims: “It’s just patently true (renewable energy) is not the cheapest. The point is, it is being subsidised by the Australian taxpayer,” Mr Mountain said.

 “Snowy Hydro underpins this deal, and has a terrible track record of building generation to cost, both for Snowy 2.0 as well as for the Hunter power station.

 Dr Webster said she expected the Albanese Government to be transparent and accountable by disclosing the full expected taxpayer cost of the Tomago smelter deal – perhaps $billions more - in MYEFO, expected within the next week.