PETER STEFANOVIC: The Government is backing a new trial aimed at minimising the effect of electric vehicle charging on the supply of reliable and secure energy. Joining me live now is the Energy Minister, Angus Taylor. Minister, good morning. Good to see you, thanks for joining us. So, you've got the Future Fuels discussion paper which is out today - there's a bit to it - but part of it will encourage businesses to take up fleets of electric vehicles. Why prioritise business instead of individuals?

ANGUS TAYLOR: Well, ultimately Pete, this is all about powering choice. It's actually enabling consumers to choose the vehicles that work for them. We're not going to tell people what kind of car to drive, but the technology is changing, it's improving dramatically, and we want to see people making the choices that suit them. Now, the strategy focuses on those areas in particular where there's short term opportunities and one of those is fleets, because the economics of fleets moving to hybrids in particular in the short term is very strong. We're already seeing that. There was a doubling of hybrid purchases in the last four months. Some of that's private vehicles but much of it is fleets. But we also see the opportunity to actually create the infrastructure, put in place the infrastructure for the longer-term as well, because EV uptake will increase overtime. The economics still have got a little way to go, but they will, and that means having the charging infrastructure in place, making sure our electricity network is resilient and able to deal with that. Those are roles for government, but ultimately, the role for the consumer is to choose the vehicle that suits them. 

PETER STEFANOVIC: Sure. 

ANGUS TAYLOR: We're not going to impose any kind of tax on consumers, as Labor proposed at the last election. Our focus will be very much on what's right for individual consumers.

PETER STEFANOVIC: Okay. You've ruled out those subsidies for the private uptake of hybrids and battery electric cars, but wouldn't subsidies actually encourage a greater uptake?

ANGUS TAYLOR: You can get a greater uptake of anything, if you like, if you're prepared to throw enough money at it, Pete. But the point here is whether it is value for money, and it's simply not value for money at the moment. That's clear from the numbers we've done. Look, if we were to try to force people into, consumers into electric vehicles tomorrow, it would be the equivalent of up to $747 per tonne of carbon we're abating. Now, we can bring down carbon emissions at $16 through the Emission Reduction Fund. So, it's just not value for money. But look, the technology is improving quickly, and it's happening. I mean, the shift to hybrids we're seeing at the moment are doubling in the last 12 months. It's already happening. And the fact of the matter is, this report tells us that you reduce emissions more by shifting to a hybrid in most states, than you do shifting to an electric vehicle. That will change over time, but that's the situation at the moment. So this is a pragmatic approach. It's about technology, not taxes. It's about recognising that consumers will make their own choices at the right time for them. But also recognising that the technology is changing fast, and that's a good thing.

PETER STEFANOVIC: Okay. Well, there are a lot of plans here for the industry. But didn't you trash the development of the industry by saying electric vehicles would end the weekend back in 2019?

ANGUS TAYLOR: No, we trashed the idea that government should tell consumers what kind of car to drive. This is about powering consumer's choice. Look, at the end of the day, consumers out there, Australians, whether they're individuals, small businesses or industry, larger businesses; they know what's good for them, Pete. It's not for the Government to tell them what's good for them. 

PETER STEFANOVIC: Yep. 

ANGUS TAYLOR: But it is for the Government to facilitate technologies into the marketplace to help inform consumers well, to make sure the infrastructure is in place, and that's the heart of this strategy.

PETER STEFANOVIC: But you were very critical of Labor's plan back in 2019. They wanted 50 per cent of all new cars to be electric by 2030. What's your target for 2030?

ANGUS TAYLOR: Well, let me tell you what I was critical of and remain highly critical of, that's an explicit or implicit carbon tax on cars - a car tax. And I'll remain critical of that, because people out there know what car is right for them and they will continue to. And we shouldn't be telling -

PETER STEFANOVIC: But what's your target for 2030?

ANGUS TAYLOR: Look, what Labor - well, at the end of the day, the target for 2030 is what's right for consumers. Our target for 2030 is a 26 per cent emission reduction target, and we're going to meet and beat it. We're already on track to do that, as you've seen in the projections that came out. 

PETER STEFANOVIC: Of all new car sales, of all people to take up electric vehicles, what percentage do you - of people to have electric vehicles - what do you want by 2030?

ANGUS TAYLOR: You know, I'm not a Soviet central planner, Pete. I don't tell people what kind of car to drive and how many of them have got to be on electric vehicles. That's their choice. I tell you what I do do, though, is I make sure we facilitate new technology into our grid, new charging infrastructure into place, making sure consumers have the information they need to make their own choices. Making sure that Australian manufacturers like Tritium - one of the world's leading electric vehicle charging businesses - is given every opportunity of success, not just here in Australia, but around the world. That's our focus- 

PETER STEFANOVIC: There’s three- 

ANGUS TAYLOR: And our target - let me finish - our target that matters is the 26 per cent emission reduction target. We're smashing it, and we're going to continue to, Pete. That's what matters for emissions reduction. Now, there are some who would like us to impose a tax on consumers, to tell consumers what kind of car they have to drive. We're not going to do that. That is not the way. You know, iPhone uptake didn't happen because we imposed subsidies or taxes. Australians are very fast adopters of technology when the technology works for them, and it is important government make sure the infrastructure is in place to make sure that happens.

PETER STEFANOVIC: And when you're talking about infrastructure, it's charging stations, particularly in those isolated areas that electric cars might not be able to get to?

ANGUS TAYLOR: That's right. Charging stations is one bit. So we've committed $74.5 million in the budget to the Future Fuels Strategy about facilitating these technologies into the marketplace. Part of that is making sure that the charging stations are in place. Part of that is making sure that the electricity networks can cope with the changing demand that they will see, and the changing usage they will see of the electricity network as people bring these vehicles into the grid.

PETER STEFANOVIC: Okay.

ANGUS TAYLOR: So, that's the practical work that has to happen to integrate new technologies into our transport systems, into our energy system. It's the practical work that we focus on in this area, and it's the practical work that will deliver the ultimate outcome - which is to reach, meet and beat our Paris targets. 

PETER STEFANOVIC: Yep.

ANGUS TAYLOR: And contribute to our part of what needs to happen here across the globe.

PETER STEFANOVIC: Just a couple of quick ones, Minister, before you go. The world's largest battery set to be built in the Hunter - do you believe this will help fill the gap created by retiring coal and gas-fired assets?

ANGUS TAYLOR: Well, I look forward to seeing any proposal that's reached financial close, that's real, is going to happen and is going to happen quickly that's going to firm up our electricity networks. We desperately need more of this. It's good to see more gas projects that have been coming along online recent years. Snowy 2.0, of course is all about making sure we've got that firm electricity we need that complements the record levels of investment we're seeing in renewables, particularly household solar. So, you know, we look forward to any of these proposals. I haven't seen the details, Pete. There's lots of talk. What matters for replacing Liddell, which is what we're talking about here, is real projects at financial close. We very much look forward to seeing any proposals that are at that point.

PETER STEFANOVIC: Okay. And just finally, National Cabinet today, hotel quarantine is going to be the biggest topic of conversation. Why is the Government palming off responsibility for quarantine when it is a federal issue?

ANGUS TAYLOR: Ultimately, the state governments have been managing quarantine, as you know, and there have been issues there. Look, the Federal Government has done more than enough, you know, if you just look at the numbers, in supporting communities through a very tough time over the last 12 months. Our financial contribution has been way beyond what any of the states have contributed, and it continues to be. I mean, this has been a massive federal contribution to support our economies and our communities, our workers through the last 12 months. There's never been a state minister or a premier who didn't come begging by asking the Federal Government for more money. That's the nature of these things, Pete, that we will continue to provide the extraordinary support we have as it's needed. And I think Australians understand that our contribution has been very significant.

PETER STEFANOVIC: Okay. Energy Minister Angus Taylor, as always, appreciate your time this morning. Thanks for joining us here. 

ANGUS TAYLOR: Thanks, Pete.

ENDS

Media contact:

Minister Taylor's office: 02 6277 7120