Despite agreeing to a $435m funding cut to the agency, crossbench senators will block Coalition attempts to abolish it

This article is more than 6 years old

This article is more than 6 years old

The Australian Renewable Energy Agency (Arena) is set to join the list of climate change agencies protected by the new Senate, with Motoring Enthusiast senator Ricky Muir and the Palmer United party (PUP) saying they will vote down government attempts to abolish it.



Muir had announced he would try to amend the carbon tax repeal bills to stop an initial $435m in funding being stripped from the clean energy body and then also try to prevent its abolition. His amendment was very similar to one circulated by the Greens.

He has now done a deal with PUP to allow the $435m in cuts to proceed in return for a commitment that the three PUP senators would also vote against Arena’s abolition.

The government wants to return $1.3bn in Arena funding to the budget, and then have the industry department oversee about $900m in funding deals that have already been struck.

With Labor and the Greens also intent on saving Arena, the decision by Muir and the PUP senators will cost the government another $1.3bn in budgeted savings.

Earlier on Wednesday, the Senate voted against the repeal of about $2bn in tax cuts that were legislated but then deferred by the former Labor government.

Muir said in a statement he and PUP “have agreed to oppose the abolition of the Australian Renewable Energy Agency (ARENA) and will vote against the government’s forthcoming legislation Australian Renewable Energy (Repeal) Bill”.

Muir said he would not not proceed with his amendment to stop the immediate funding cut to Arena that is included in the carbon repeal bills.

PUP senators have already promised to stop the government’s plan to abolish the Clean Energy Finance Corporation and the existing renewable energy target.

The government is seeking to effectively close Arena before legislation passes by refusing to reappoint board members as their terms expire.

In a separate statement, PUP leader Clive Palmer said “The Palmer United party will not vote for the government’s other upcoming legislation that seeks to abolish Arena altogether. I had extensive discussion with former United States vice-president Al Gore about Arena and was convinced by his arguments in support of this important agency.”

But he said PUP would not vote against the immediate funding cuts because it believed “Arena should be held accountable and making some budget savings was reasonable in the current circumstances”.