Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

There are a range of issues that have been raised with me as we conclude this session. Firstly, can I say to the member for Parramatta that I am pleased to see that the election commitment of $500,000 to develop a new, innovative approach to promoting tourism in Parramatta was delivered in the budget. That is exceptionally important. I also grew up in the Parramatta district, and I was pleased to see Parramatta give the Wests Tigers an absolute belting last Sunday afternoon. More seriously, I understand that Parramatta is the cradle city of the nation. It is full of history, and this amount of money allows the city of Parramatta to actually get more serious about the issue of tourism.

In terms of renewable energy, can I simply say that there is a fund of $500 million, of which $50 million is allocated for geothermal. Following consultation with the industry, I will be announcing guidelines, which the industry has been involved in, for the development of the industry in the foreseeable future. About $21½ million of that money will be available in 2008-09, which is most welcome. Fifteen million dollars of that money is also available for the purpose of development of second generation biofuels, which will be of interest to the member for Gilmore, given her interest in that industry over an extended period. There is an innovation fund of $150 million for renewables, of which $100 million will be principally related to research and development activities for solar-thermal and solar PV as part of the government’s commitment to renewables. But remember this: the renewable energy industry will get a leg-up through the development of the emissions trading system, which puts a price on carbon, and also through the introduction of the renewable energy target of 20 per cent by 2020. I simply say to the industry: it is not just a question of grants; it is also the nature of the system that will significantly advantage the renewable energy industry.

With regard to the issues raised by the member of Kalgoorlie, for the life of me I think it is about time some people understood that a point is reached in life where you draw the line. The North West Shelf project is, firstly, a mature project. Secondly, it is a highly profitable project. I would have thought that our responsibility, having only brought on two LNG export opportunities in 20 years, is to actually devote our attention to the development of a modern, 21st century program of incentives to encourage investment in new projects, rather than just continuing to substantially financially assist existing mature and highly profitable projects. I draw your attention to the fact that condensate excise exclusion was first introduced 24 years ago. It has represented a return to the companies of $1.5 billion over the last five years alone, when oil prices were half the current levels. I might also say that this is over and above an unintended windfall gain as a result of a concession introduced in 2001 to reduce the top rate of the crude oil excise. By my calculations, that has delivered to these participating companies another benefit of $1 billion since 2001. It would be interesting to go back and read the second reading speech of the then member for Leichhardt, who had the responsibility for introducing this change in 2001. I point out that this change in the top rate of the crude oil excise is far more generous than was originally intended by the previous government or expected by the companies.

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