Business tackles Garrett on solar means test

AAP Newswire
Tuesday 20/5/2008

CANBERRA, May 20 AAP - Environment Minister Peter Garrett says the government won't back down on its decision to means test rebates for residential solar panels. Mr Garrett was confronted today by a large group of business executives voicing their disapproval of the budget measure. A National Business Leaders Forum on Sustainable Development, held in Parliament House, erupted into applause and cheers when a delegate tackled Mr Garrett over the issue.

"How about removing the means-testing regime on household solar?" the delegate asked Mr Garrett, who was chairing the session. "And instead, actually increasing the rebate so that every household, rich, poor, interested, disinterested, can convert to solar?" Mr Garrett waited for the applause to die down before responding. "I must admit I'm a little surprised to see business enthusiastically supporting the increase of a rebate of this size," he said.

Only households earning less than $100,000 will now qualify for the $8,000 rebate on solar panels. The business executives are not the only ones concerned about the means test. Supplier Conergy is to hold crisis talks with Mr Garrett tomorrow, warning 80 per cent of orders for solar panels have been cancelled. Mr Garrett gave no sign of backing down when asked if the means test was here to stay.

"Yes, that's right," he told AAP. "This is the right decision, given that the demand for this program was so strong." Mr Garrett played downs concerns about the decline of the solar industry and job losses. "I'm also confident that the industry, over time, will be able to continue on a sustainable path, it's important that it does," he said.

There had been "a problem" with the formerly non-means tested rebate program because it was too popular and would soon be fully subscribed. The means test would ensure the rebate went to those who most needed it. "We've addressed a problem with the existing program," Mr Garrett said. Conergy's managing director Roger Meads said the means test had led to job losses and he was deeply concerned.

"Following the government's solar means test announcement, Australian families have now cancelled 80 per cent of their solar system orders due to the cost being prohibitive, meaning less solar panels on roofs," he said. "It is unrealistic to suggest that families in Sydney, Melbourne or Perth on less than $100,000, with rising petrol and grocery prices, could actually afford to service a typical home loan - let alone pay to install solar panels.

"We understand this government needs to be vigilant when deciding how to spend taxpayers' money, but - to use the prime minister's own words - climate change is one of the greatest environmental, social and economic challenges of our time." Mr Meads has written to the prime minister and Mr Garrett, urging them to reconsider the means test.