THE solar industry is preparing a rearguard action to fight the state government's decision to slash the rate paid to households that generate electricity through roof panels.

Lawyers are preparing to argue that the O'Farrell government is acting outside its constitutional rights by seeking to pass retrospective legislation to cut the fee for a kilowatt hour of electricity from 60¢ to 40¢.

That change is expected to affect 110,000 participants, while an additional 40,000 electricity customers who applied to join the scheme before it was suspended last month will now get a 20¢ rate under plans announced by the Energy Minister, Chris Hartcher, last week.

The solar industry has also started a public campaign, warning of significant job losses among its 8500 workers. Today it will hold a protest in Circular Quay and it is raising a petition to pressure the government to change the policy.

"We believe Hartcher may have acted outside his authority by changing the rate retrospectively, but our lawyers [Piper Alderman] are waiting to see the exact working of the legislation," said Ged McCarthy, chairman of the Solar Energy Industries Association.

"This will destroy any confidence in the solar industry and cripple small businesses. People bought solar panels on the guarantee they'd get 60¢ and, even if the Premier reintroduces another scheme in the future, nobody will invest because they know a government commitment is worthless."

John Grimes, of the Australian Solar Energy Society, said Barry O'Farrell and senior ministers had broken election promises. He cited a letter from the Deputy Premier, Andrew Stoner, in which he outlines the Liberals' "longstanding opposition to retrospective change''.

"O'Farrell must keep his promise to the NSW electorate and immediately reverse his decision," Mr Grimes said.

While the retrospective legislation is certain to pass through the lower house, the Greens are attempting to secure the 21 votes needed to block it in the legislative council.

"We believe Labor will vote against retrospective action, which leaves us trying to get the support of two more members," said Greens representative John Kaye. "Hopefully members of the Shooters and Fishers Party and the Christian Democratic Party understand this is a proposition that will hit small business hard and cost jobs."

Mr Hartcher said the move to cut the tariff was ''a very difficult decision, and one that was made reluctantly''.

http://www.theage.com.au/environment/energy-smart/solar-industry-to-focus-heat-on-rebate-cutbacks-20110517-1eriw.html

A Liberal MP has broken ranks with the New South Wales Government, by describing its decision to slash a solar rebate scheme as unprecedented and repugnant.

The ABC has obtained a copy of a letter sent from Upper House MP Catherine Cusack to Premier Barry O'Farrell and all her Coalition colleagues.

In the letter Ms Cusack slams the decision to cut the rebate paid through the Solar Bonus Scheme.

Energy Minister Chris Hartcher announced last week that more than 100,000 households in the scheme would have their tariff reduced from 60 cents per kilowatt hour to 40 cents.

"It is a central tenant (sic) of Liberal and Conservative philosophy that any retrospective legislation to alter contracts is unprecedented and repugnant," Ms Cusack says in her letter.

Ms Cusack says it is a mistake to allow another 40,000 customers into the scheme while punishing those who have already signed up.

"I am receiving numerous emails detailing distressing cases where significant financial losses will be incurred if we proceed with the proposed legislation. There is a major issue of integrity at stake," her letter says.

Ms Cusack has also criticised how the decision was made, saying it should have been debated by all Liberal and National MPs before being announced.

She now wants the issue debated at the Coalition's party room meeting next Tuesday.

"I truly hope the decision by Cabinet can be revisited as there is ample scope for major improvement that avoids the twin evils of retrospectively and expansion," the letter says.

Ms Cusack was the Coalition's Environment spokeswoman in Opposition but she was overlooked for the ministry after the election victory in March.

Opposition spokesman Luke Foley says the letter shows the O'Farrell Government is already in disarray.

"Six weeks into government and the Liberal's backbench is in revolt because Mr O'Farrell has betrayed the mums and dads who voted for the Liberals in large numbers," Mr Foley said.

"Rather than taking down his promises from the Liberal Party website, Mr O'Farrell should honour his election commitments.

"The Liberals gave iron-clad guarantees prior to the election that there would be no retrospective legislation to cut the tariff under the Solar Bonus Scheme. Barry O'Farrell needs to listen to Catherine Cusack and honour his election commitments."

Greens MP John Kaye has praised Ms Cusack for making a stand.

"The Greens congratulate Catherine Cusack for her courage and we invite her to cross the floor and vote for our amendments which would stop the 60 cents a kilowatt tariff being smashed by the Coalition," Mr Kaye said.

"Catherine Cusack is reflecting the anger held by solar participants and by other backbenchers in the Liberal Party and the National Party. It's time for the Premier to listen and to abandon plans for retrospective legislation on the Solar Bonus Scheme."

The letter is dated May 17, the day before more than 1000 people gathered at Sydney's Circular Quay to protest against the tariff reduction.

The Premier says there will be no repercussions against Ms Cusack for taking a stand, though he would prefer such issues to stay behind closed doors.
"All I say to all my collegues is these are matters for the party room. These are the matters we should discuss around the metaphorical kitchen table and when we walk outside the room we do so as a team," Mr O'Farrell said.

http://au.news.yahoo.com/nsw/latest/a/-/article/9470556/solar-spray-from-nsw-liberal-mp/

So what was O'Farrells promise to the solar industry again?

When the former NSW government's NSW Bonus Solar Scheme was debated in the middle of 2009, it was fully supported by the then Liberal opposition party led by Barry O'Farrell.

I did a lot of research into solar energy at that time and, while I cannot claim to be a ''greenie'', I thought it would be a good idea ''to do my bit'' for the environment and, to be honest, the rebate of 60¢ was attractive.

Given the then Labor party was not to be trusted I was apprehensive in investing money in the scheme, but what tipped me in favour of going ahead was the knowledge that the Liberals would come to power at the next election, and while they may review and amend the scheme, I did not believe a Liberal government would be morally bankrupt and apply any retrospectivity.

The Liberals were always the first to howl when the last Labor government even hinted of introducing any sort of retrospective legislation.

I invested $12,000 and had the solar system installed. I did so on the basis of a reasonable return on my investment and some small positive environmental impact.

So you can imagine my horror when I read in Saturday's Herald that the Liberal government is going to introduce retrospective legislation to reduce the rebate to 40¢.

If Mr O'Farrell and his team bring this change to law, they will, in my view destroy any credibility and trust I had in them when I voted for them on March 26 in both houses.

It will also go to prove to me, that no politician of any persuasion can be trusted, which is a shame really because I wanted to trust and support Mr O'Farrell, however that was obviously a misguided aspiration by me.

http://www.smh.com.au/national/letters/this-is-a-deal-breaker-mr-ofarrell-20110515-1eo8u.html

Please delete wrote on May 19^th, 2011 at 9:20am:


An opinion peice, really mate.

Verge wrote on May 19^th, 2011 at 9:25am:


It's a LETTER, verge.

Verge, do you support the concept of retrospectively breaking contracts signed in good faith?

Or saying one thing during an election campaign, then doing the opposite?

http://webcache.googleusercontent.com/search?sourceid=navclient-ff&ie=UTF-8&q=ca...