Ian Macfarlane (Groom, Liberal Party, Minister for Industry and Science) Share this | Hansard source

I thank the shadow minister for his questions. I will try to get through as many as I can in the time allocated. With regard to the ACCC inquiry, it is the government's desire to ensure that we have a clear and transparent gas marketing and transport system in Australia. The Minister for Small Business and I have engaged the ACCC in an inquiry to investigate that. It is not a witch-hunt. It is not our expectation that the commission will find any untoward activity, but we are letting the commission have a very good look at the situation because we are going to see fluctuations in the price of gas in Australia and we need to be sure that the market is working as it should. The issue paper in relation to the ACCC inquiry seeking industry input was released two weeks ago and we are keen to see industry participate in that as much as they can.

In terms of the shadow minister's suggestion that I ask the New South Wales government to desist, yes, I always ask the New South Wales government and any other government to do the right thing, but I have to say it has been one of my failures in political life. State governments have a mind of their own. In terms of their particular objections to the ruling of the AER, I express my total confidence in Paula Conboy, to the point where my money is on her. Whilst state governments and particularly their treasuries will do what they do—and I note the member's comments in relation to fattening the pig; I am sure that is not the case—what the AER will do is deliver lower electricity prices to New South Wales consumers and particularly households. Along with the abolition of the carbon tax, we are seeing significant decreases in the price of electricity in most states as a result. I have to congratulate the work of the AER.

With regard to the north-east interconnector, the connector from the Northern Territory to Mount Isa, I have an optimistic view on that. From my discussions with the Northern Territory government, they have a number of very credible proponents proposing to build that gas pipeline and proposing to build it at no cost to government, which is always music to my ears. The reality is that there is significant demand, particularly in New South Wales, where the CSG industry has been unable to progress in the spectacular, constructive and environmentally sensitive way that it has in Queensland. It is unlikely to see the advance of CSG in New South Wales in the short term and, as a result of that, we will be continuing to support the Northern Territory government in its endeavours to have that interconnector built. As I say, I am optimistic.

The member for Brand asked about the IEA and Australia's strategic reserves in compliance with the IEA. As he knows, as he was the minister who passed the hot potato to me when they left government, we were noncompliant in the last term of government, and our government is looking at a path back to ensure that we satisfy the requirements and remain a member of the IEA.

We have just had some discussions with the IEA in Paris—'we' being my department—and it is my understanding that the IEA is prepared to consider Australia's approach to this matter. It has the potential to be extremely expensive if we do not handle it carefully, and as a result of that there will be ongoing discussions. The reality is that Australia's change in production—the fall in oil production and, as is always expected, a rise in consumption—has meant that we have been noncompliant and have been, as I say, for quite some time.

The last question, with regard to Geoscience—I certainly understand the concern of the member. I do not envisage an increase in the number of places in Geoscience Australia for graduates.

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