Shayne Neumann (Blair, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and Minister for Tourism. Would the minister advise the House why it is important for Indigenous communities in the Northern Territory and for the Australian economy that alumina refining continues at Gove. What steps is the government taking to help the Northern Territory government secure the region's future?

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

I thank the member for Blair for the question. In doing so, I indicate that there has been absolute cooperation between the Australian government and the Northern Territory government with respect to how we can put together agreement to guarantee the continued operation of the Pacific Aluminium refinery at Gove. This is an exceptionally important opportunity for the local community. When you think about the history of Gove, built in the late 1960s and 70s, it is akin to the construction of the Gorgon LNG project on Barrow Island at the moment. It was built in a remote area of Australia on the basis of a freely available resource, which since then has sustained the community of Nhulunbuy. We all appreciate that aluminium prices in recent times have declined significantly. The problem for Pacific Aluminium is that since its initial opening it has been fuelled by diesel, and the huge cost of diesel at the moment has added to the woes of Pacific Aluminium with respect to the continued operation of this refinery.

For those reasons Pacific Aluminium has been engaged in discussions with me and the Northern Territory Chief Minister over recent months to try and work out if we can facilitate the availability of gas to Gove. This is not only important to the local community, which relies on the 1,100 jobs—both direct and indirect—but it also creates a very valuable opportunity for further economic development in the Northern Territory. If we guarantee the gas supply, then we will double the size of the gas market. That will bring on huge exploration, both onshore and offshore, from multinational companies, such as Eni and Total, leading Australian companies such as Santos, and emerging gas companies such as Amor Energy and Butu Butu. It will also create the opportunity for retail competition in the gas market to the benefit of industrial operatives and, I might say, ordinary consumers. If you get an increased supply of gas, you then get the opportunity to attract further investment and jobs in Northern Australia. It is a practical example of what real policy hard work is about—well thought out, delivering on the ground and in a practical way.

I therefore urge the Northern Territory Chief Minister in his discussion with Pacific Aluminium at the head office of Rio Tinto in London tomorrow to think very seriously about making the necessary gas available. We will not have a shortage of gas in the years to come. Making this hard decision now is imperative, not only for the community of Gove and those direct and indirect employees, but also for all those small businesses that depend on the operation of Gove. I simply say that this is a decision that must be made. Once made, we will be able to move to the next process of consideration of whether we can assist in underwriting the construction of the pipeline. It is good for the Northern Territory and it is good for Australia. I simply say to the Chief Minister, 'You have our support in making this decision.' (Time expired)