Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry, Tourism and Resources) Share this | Hansard source

Minister Macfarlane brought the Australian Energy Market Amendment (Gas Legislation) Bill 2006 to the parliament with the support of our colleagues on the Ministerial Council on Energy to continue our progress towards an efficient and effective national regime for the regulation of gas pipeline infrastructure. By passing the bill, the Commonwealth parliament will play a lead role in facilitating the Ministerial Council on Energy’s cooperative gas access regime. This regime will be underpinned by lead legislation enacted in the South Australian parliament to which the National Gas Law will be a schedule. The National Gas Law will then be applied by all remaining jurisdictions, including the Commonwealth, but excluding Western Australia, through legislation known as applications acts. Western Australia will pass mirror legislation with content similar to the National Gas Law rather than applying the National Gas Law established by South Australian law.

This bill amends the Australian Energy Market Act 2004 to apply the National Gas Law in the Commonwealth’s jurisdiction, including the offshore area and external territories. It also amends that act and the Trade Practices Act 1974 to allow three key Commonwealth bodies—the Australian Energy Regulator, the National Competition Council and the Australian Competition Tribunal—to take on key roles within the regime.

Except in Western Australia, the Australian Energy Regulator will take on the role of regulator within the regime, in place of various regulatory bodies that are currently undertaking this role in different jurisdictions. This will lead to more efficient and consistent regulatory decision making. The National Competition Council and the Australian Competition Tribunal will also have important roles in overseeing and reviewing the proper operation of this scheme to ensure economically efficient, competitive outcomes in the gas market to protect the long-term interests of the consumers of gas. The involvement of these Commonwealth bodies is an essential part of this cooperative scheme, and the Commonwealth must provide groundwork for the passage of the National Gas Law in the South Australian parliament by legislating for these functions and powers to be exercised.

The National Gas Law is currently the subject of a rigorous consultation process engaging all relevant stakeholders. The Ministerial Council on Energy Standing Committee of Officials have released their policy response to issues raised during consultation on the exposure draft of the National Gas Law and they will be finalising the legislation, taking into account issues raised by stakeholders. The member for Prospect has raised industry’s concerns about the powers conferred on the Australian Energy Regulator by the National Gas Law, and particularly the Australian Energy Regulator’s ability to investigate matters of competition. These issues have been the subject of detailed discussions over some time, and the government will continue to work with the states through the Ministerial Council on Energy process to address stakeholder concerns and to ensure that the National Gas Law delivers an effective national gas regime.

The National Gas Law is designed to reduce the regulatory burden on industry and to facilitate investment in gas pipeline infrastructure. The National Gas Law will introduce a new, light-handed form of regulation that allows gas market participants to negotiate economically efficient outcomes without the direct involvement of the regulator, whilst creating a fair and effective access regime. The National Gas Law will also continue the greenfields pipeline incentives established by the Ministerial Council on Energy in June 2006, incentives which create certainty for investors undertaking risky greenfield and international pipeline projects.

In summary, passage of this bill will represent a significant legislative step towards a truly national gas access regime. The cooperative national gas law regime will ensure that Australia enjoys the benefits of a competitive and efficient gas market whilst minimising the regulatory burden on industry. This bill has the full support of Minister Macfarlane’s state and territory colleagues on the Ministerial Council on Energy; therefore, I commend the bill to the chamber.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.

See this speech in context