Ken O'Dowd (Flynn, National Party) Share this | Link to this | Hansard source

Coal and gas are so important to my electorate of Flynn and the economy of Australia. Some coal facts are as follows. Australia is the fifth-largest coal producer in the world, with the fourth-largest reserves in the world. It's the No. 1 exporter of metallurgical, or as we once knew it coking, coal. It's the No. 2 exporter of thermal coal, which is used for the generation of electricity. In 2019-20, we exported 177 million tonnes of coking coal, earning $35.5 billion, with 213 million tonnes of thermal coal generating $20.9 billion.

With COVID-19 in 2019-20, we've seen a drop of 21.7 per cent of coking coal—it was down. Also thermal coal was down by 22.5 per cent. According to the IMF, there was a global slump in coal prices, down 4.4 per cent. The good news is there was a 5.2 per cent rebound in 2021, according to the IMF. The industry is a significant employer in New South Wales, Queensland and Victoria. There are 50,000 direct jobs. There are 100,000 indirect jobs. There is a predicted rebound for 2021, as demand and price will increase after suffering the downturn of COVID.

Asian countries know that coal plays an important role in producing cheap, reliable, baseload power for their fast-growing economies. No other form of generated electricity can meet this criteria. China demand will be a key driver to the price for their massive steel industry. Iron ore and coking coal are essential for making steel. Demand and procurement drive the price. No matter what country they import it from, the same issues apply. In India—the second-largest importer of coking coal—demand is predicted to rise in 2022 and continue to rise for at least another decade. In 2021-22, world trade demand for coking coal is expected to increase, while thermal coal demand is expected to decrease. Across Asia, the preferred electricity source becomes HELE coal-fired power, which will increase the demand of thermal coal and Australian thermal coal.

By keeping our energy costs down, we'll invigorate our manufacturing industries. The best way to do this is through coal. We should be building more coal-fired power stations, not fewer. The electorate, I've seen, has 15 operating coalmines. They produce our thermal and metallurgical coal for both domestic and export markets. The electorate of Flynn sits in the Bowen Basin. The Bowen Basin contributes approximately 211.2 million tonnes of coal.

Three of Queensland's largest coal-fired power stations sit in Flynn: Gladstone, Stanwell, Callide B and Callide C. We need to invest in coal rather than demonise it. I believe that we need to start planning for new coal-fired HELE plants ASAP. Shutting them down will only put electricity prices up. We have the best coal in the world. Let's utilise it. Would someone please tell the banks and the insurance companies to get on board, because presently they are anti coal and anti gas and anti insurance.