Dennis Jensen (Tangney, Liberal Party) Share this | Link to this | Hansard source

Australia pioneered the industry of freezing pure methane to make liquefied natural gas, or LNG. Gas, of course, is abundant in Australia. Western Australian business is making the switch. Cleaner, cheaper fuel is not only good environmental and energy policy; it is also good economic policy. As the economy transitions from one based on a significant mining investment boom to a more sustainable, high-skilled, high-value-adding services export economy, we need to take stock of our inherent natural and abundant comparative advantages.

I would like to highlight and commend the work of risk-taking entrepreneurs in my seat of Tangney, particularly the team at Mobile LNG for their big idea for LNG. Their business is passionate about the substitution of imported diesel with Australia's own LNG, as this will deliver many significant advantages and benefits to the Australian economy. Going after a big idea is something that excites and animates us all as a nation, but today red and green tape often hold back the big ideas. We heard from the member for Forrest in this place on Wednesday, 25 February 2015 that the LNG industry has to comply with 150 statutes and 50 government agencies.

According to statistics from the International Energy Agency, Australia is currently the third largest LNG producer in the world, behind Qatar and Malaysia. The agency says Australia has the capacity to produce 24.4 million tonnes per annum.

Commonwealth spending should be directed away from dirty imported fuels and towards making better use of Australia's own natural gas. In 2013, the cost of petroleum/diesel imports was in excess of $42.2 billion. Ninety per cent of all petroleum products are imported. Using diesel fuel is between 20 per cent and 40 per cent more expensive than using Australia's own natural gas. Diesel fuel has pollution consequences that are either eradicated or significantly reduced by the use of natural gas. With a decreased need for costly imports of diesel, the conversion to using LNG—particularly for high consumers of diesel in the mining industry—is vitally important to Australia's economic future and productivity.

The paradox of Australia's current approach is that, despite Australia possessing an abundant natural gas resource as the means to direct a better outcome for its socioeconomic future, it continues to import expensive diesel/petroleum products, while maintaining policies for a diesel/petroleum dependent economy, and exporting the economic advantages of its own natural gas away in LNG form, to the benefit of other countries.

In short, this adjournment speech is about taking a longer term view of expenditures. It is about true investment—that is, wearing the capital expense to convert to LNG now to secure immediate and long-term cost savings. In addition, with this forward-looking view and boldness, we would secure the jobs and energy of the future. We need these projects and people like Mobile LNG; they are our energy bridge to the future. They define Australia as an energy superpower: strong in coal, strong in uranium exports, dominant in LNG. It is worth putting on the record the solid friends of LNG in this place—people like the member for Forrest, the member for Lyne and even the member for Brand.

The job of government is never to pretend it is a business. Government is about leadership. A vote of confidence in the future of Australia and the future of LNG would be government showing leadership by making the switch from diesel to LNG in its own operations. Europe and the US are already making that transition, but Australia, an LNG superpower, is falling behind in using our own resource. We keep using imported resources instead of our own, threatening our own energy security. This is very similar to our myopic view of nuclear power, but that is for another day. First, let us lead by example today to make Australia first in the world tomorrow.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

It being five o'clock, the debate is interrupted.

House adjourned at 16:59