Brian Mitchell (Lyons, Australian Labor Party) Share this | Hansard source

It's always interesting to follow the member for Hughes. Really, a Green-left frolic? You've got the entire world's climate scientists saying action is needed on climate change and energy policy. But, no, we should listen to the member for Hughes—he's the expert on everything! Who would believe that Australia could become the world's largest exporter of liquefied natural gas yet, at the same time, be facing a domestic gas shortage? That is what is occurring under this government, that the member for Hughes is a member of, which, for four years, has sat on its hands instead of adapting to the change in circumstances. In recent months those on the other side have stirred from their slumber and have realised that there is an energy crisis in Australia. Their answer? It is to blame Labor and continue childish attacks upon the renewable energy sector.

As investment in renewable power exceeds $260 billion—more than double what was invested in coal and gas—we have members opposite all but declaring war on renewable energy. We have the former Prime Minister, the member for Warringah, and his sidekick the member for Hughes calling on their own government to scrap the renewable energy target. The climate change wars continue on that side. What could they have done in four years if the flat-earthers over there had not been waging a climate change war within their party room, a war that shows no sign of abating? They could have used the past four years to develop a national energy policy, for a start. Instead, here we are, nearly half a decade into the coalition's term of government, with Australia the largest LNG exporter in the world, with the future of coal-fired power in the balance and a $3 billion renewable energy sector swinging in the wind. And those opposite only now realise that energy is, perhaps, something they should be paying more attention to.

Anyone who has dealt with the Australian gas market knows it is one of the least transparent industry sectors in the country. No-one knows how much gas is produced, who holds it, how much is sold, how much it is sold for or where it goes. So Labor are supporting this bill before the House because we believe Australians deserve to know more about the state of this country's fuel reserves, including gas. Under international agreements, Australia is obligated to hold enough fuel to keep the place running for 90 days, but we have not been keeping those commitments. We have been down to 48 days of fuel in this country—an unnerving prospect in uncertain times. Under this government Australia's maritime fleet and heavy-machine manufacturing capabilities have been gutted, impacting on our national security. But that's an argument for another time.

It is clear that voluntary arrangements with the energy industry to keep the government informed about fuel movements are not working. So this bill establishes a mandatory reporting regime and empowers the minister and department employees to distribute collected information while protecting that which is commercially sensitive. These are sensible measures. But no-one should think that this is in any way a solution to the energy crisis that is unfolding right now under this government. This is an energy crisis that has seen wholesale gas prices for Australian industry skyrocket from $4 a gigajoule a few years ago to $20 a gigajoule today. The international average is around $8.

To give some context to what we're talking about, Australia produces about 2,607 petajoules and consumes 1,500 each year. One petajoule is equal to one million gigajoules, meaning we produce in Australia 2.6 billion gigajoules a year and consume about 1.5 billion. That means wholesale consumption costs have quadrupled from $6 billion a year to $30 billion a year. To give you an idea of what a gigajoule is, the average Tasmanian consumes 207 gigajoules every year for lighting, heating and other uses. That's an increase from $828 to $4,140 per Tasmanian every year. I know these are wholesale industry prices and not retail household prices, which are much higher still, but they give some idea of how these price rises may be impacting Australians at the household budget level, let alone the cost burden that they place on industry and its international competitiveness.

Labor have been warning the government for years about the need for a national policy and, unlike the government, we have been developing a coherent plan. In 2015 we adopted a national interest test for gas at our national conference. At last year's election we announced how that test, applied under a Labor government, will ensure exports won't come at the expense of domestic users. What was the government's response to Labor's national interest test? There were shrill cries of 'red tape' and unfounded claims that it would hamper investment. Under those opposite, gas prices for Australian industry have quadrupled and they have no plan to address it. What a hopeless, hapless performance from a government that is unfit to run a lemonade stall, let alone a nation.

The International Energy Agency has slammed the administration of Australia's gas network, saying it is a market failure for domestic prices to have risen above those that are charged to export customers. It is up to government to intervene where markets fail and to guide markets so their outcomes have a community benefit, not just a private benefit. Grattan Institute Energy Program director Tony Wood says the government needs to act swiftly and release decisive targets or risk watching state governments embark on their own renewable energy plans that operate in a piecemeal fashion. But, instead of working cooperatively with the states, this government throws rocks at them, mocking them for taking action and blaming them for its failure of leadership. This government is so chaotic when it comes to energy policy that yesterday we heard that the Treasurer told a forum over the weekend that the era of cheap coal-fired power is coming to an end—just months after he brought a rock of coal into the parliament to extol coal's virtues as a source of abundant cheap power.

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