Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Energy and Resources) Share this | Hansard source

I think he is supporting New South Wales but I will show him who is in charge. Like the government, the coalition understands the significance of Australia's oil and gas industry and is aware of the importance of ensuring it can operate within a safe and sustainable environment. From the outset the coalition have made a genuine commitment to work with the government on this issue and have never sought to politicise the issue for our own gain. I thank the minister and his office for their cooperation in ensuring that during that period the coalition has been fully briefed on the matter.

The minister is right in saying that the Montara incident and the disaster in the Gulf of Mexico have changed the way the offshore oil and gas industry is perceived, not only here and in America but right around the world. But this intensified scrutiny is not something the industry or the government should shy away from, rather it is an opportunity to enhance an industry that is fundamental to the energy and resources sector. Just as people are more aware of the nature of oil and gas exploration and extraction, they are also increasingly aware of the scale of the projects, the level of investment they attract and the economic benefits and job opportunities that are created by them. Indeed, thousands of jobs and billions of dollars of investment are at stake, which is why it is essential that we get this right. I share the view that the offshore oil and gas industry can operate in a manner that allows it to grow without exposing either its workers or the environment to unnecessary risks.

In terms of the government's acceptance of the recommendation for a single national regulator, the coalition supports this idea in principle and will now scrutinise the full details of the amendment bills presented to the House this morning that will set up the National Offshore Petroleum Safety and Environmental Management Authority, NOPSEMA, and the National Offshore Petroleum Titles Administrator, NOPTA. The coalition is also broadly supportive of the government's proposals to strengthen the regulatory regime for the sector and for clarifying the procedures and principles for responding to emergency situations.

I also acknowledge the opportunity that has been afforded to the industry to provide input to the government's response to the Montara Commission of Inquiry. From my discussions with industry—and they have been extensive—I understand this is an issue that they are very engaged in. They share the same aspirations to make sure the industry can develop in a safe and sustainable manner while preserving and not impacting on the environment. I applaud the commitment from the industry, as outlined by the minister, by which the Australian Petroleum Production and Exploration Association, APPEA, and its members have worked to create. APPEA has created a draft mutual aid memorandum of understanding relating to incident response, a self-audit tool for the management of well operations, and an oil spill preparedness and response improvement plan.

I would also like to acknowledge the role of the Western Australian government in negotiating the best outcome for the oversight and regulation of the oil and gas sector. As we know, in offshore terms, Western Australia is far and away the majority partner in the oil and gas industry in Australia.

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