Paul Neville (Hinkler, National Party) Share this | Link to this | Hansard source

My question is addressed to the Acting Prime Minister and Treasurer. Can the Acting Prime Minister inform the House how Australia can take advantage of the surge in global energy demand and secure its energy future? Is the Acting Prime Minister aware of any alternative policies?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Hinkler for his question. I can inform him that Australia is well placed to meet the increasing global energy demands, particularly those coming out of China. Listen to these figures: Australia has eight per cent of the world’s proven coal reserves, we have two per cent of the world’s natural gas reserves and we have 40 per cent of the world’s low-cost uranium resources. This places us very well indeed as a global player in relation to energy demands.

When I was in China in October last year, I raised the prospect of an ‘energy freeway’ between the south and the north of Asia by which Australia could supply the growing demands of that country and ensure that it has long-continued and reliable supply. The energy freeway will not be built by countries trying to get ownership of resources to lock other countries out. It will be built by ensuring there are deep liquid markets with reliable suppliers under enforceable contracts which give certainty and security under a framework of law.

Australia has a unique role to play in the energy freeway between the south and the north of Asia. We have entered a 20-year contract for gas to China, one of the biggest export contracts we have ever had. We know about Australia’s coal contracts. But can I also suggest that Australia has a great opportunity in the export of uranium, of which we hold a larger proportion of the world’s reserves than we do in relation to gas and coal.

I cannot imagine any person interested in Australia’s economic future banning the export of uranium to countries that observe proper safeguards and nuclear standards. Such a decision would be completely contrary to the Australian national interest. Nobody in their right mind would think that we would deny ourselves export markets for gas or coal. Nobody in their right mind should deny Australia export markets for uranium, provided they are countries with safeguards which comply with international obligations. On this side of the House we believe that Australia should have the best export future it could possibly have, and our export future lies in our energy exports to a growing demand in the north of Asia.