Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for the Environment and Energy. I refer the minister to a large manufacturer in my electorate which directly employs 350 people. This business is in danger of closing down because its gas bill is set to double in the next financial year. Minister, can you advise the House what is being done to address this issue of gas supply and affordability, and is the minister aware of any alternative approaches?

Mr Stephen Jones interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Whitlam is warned.

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

I thank the member for Barker for his question and acknowledge his deep concern about the rising power prices and the impact on households and businesses from Mount Gambier to Millicent, some of whom I have met with the member for Barker. He understands that gas is a critical part of our economic security—indeed, it provides about 20 per cent of our electricity, it is a vital feedstock for industry and it is an important transition fuel.

Gas prices have increased about threefold over the last five years. That is why, under the Turnbull government, we are taking a number of steps to put downward pressure on gas prices, including export controls and export restrictions to reserve more for domestic use. We are also putting in reforms through the COAG process to lower the costs for transportation. As well as that, we had a $90 million package in our recent budget to incentivise further investment.

I am asked if I am aware of any alternative approaches. During the Labor Party's time in office, they took major financial investment decisions on the three gas projects at Gladstone. The member for Port Adelaide earlier this year went on Insiders and was asked by Barrie Cassidy, 'You were in government four years ago and you got plenty of advice then that the surge in exports would lead to these sort of problems, but you did not take this action.' It is important to listen to this. This is what the member for Port Adelaide said—'No, we didn't get that advice.'

I asked myself: what level of advice does the member for Port Adelaide get about the LNG industry and its impact? I looked at the Australian Energy Market Operator's report for 2012. Under the heading 'LNG market impacts' it said:

This LNG export market is having a significant impact on the domestic market …

…   …   …

… potential supply shortfalls to the LNG export and domestic markets may be seen …

That was the advice. In an energy paper put out by the Labor government in 2012 it said in a highlighted area that: 'LNG export industry will lead to transitional pressures and will manifest in tighter supply and higher prices.' So the member for Port Adelaide has gone on television and said he did not get any advice. In 2012, both AEMO and his own energy white paper gave him advice. I think this is a smoking gun. The member for Port Adelaide should come into this place and apologise, because he had been given advice about the problems his party created. (Time expired)