Andrew Charlton (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources. What action is the Albanese government taking to address the east coast energy crisis while maintaining Australia's reputation as a reliable trading partner?

Madeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | Link to this | Hansard source

I thank the member for Parramatta for his question and I also congratulate him on his election victory. This is also the first opportunity I've had to congratulate you, Mr Speaker, on your elevation to that great role.

The east coast energy crisis has been 10 years in the making—all from those opposite. Twenty-two times they failed to implement an energy policy. This is the mess they have left this country in. Today we see, as the Treasurer said, that the ACCC gas inquiry report has told us that we can expect a 56 petajoule shortfall in 2023. That's the equivalent of about 14 cargoes of LNG 'K' Line carriers going out from the ports.

While those opposite when they were in government engaged in petty internal squabbles about energy policy, this government will act and has acted. For a start, this government has extended and will extend the life of the ADGSM. This is the trigger you were calling for us to pull, yet it doesn't exist at the moment. That right does not exist, because you failed to extend the life of that mechanism. Those opposite hid energy prices and the State of the environment report. They also failed to extend the life of the ADGSM, and they all march around calling for us to pull that trigger. First things first, people. Let's make sure it's actually extended. That process is underway. In fact, one of the very first decisions of this government was to extend that, because we could see this coming. We did not put our head in the sand. Those opposite most certainly have done so.

The government today has also opened consultation in regard to reform of the ADGSM to ensure it is an effective tool and is fit for purpose so that it is available on more than an annual basis. This is a means to make sure there will be an opportunity to activate a gas security mechanism more often on more reasonable notice, and that can bring downward pressure on gas prices. The current mechanism fails to do any of those things.

The government will also start negotiations on the heads of agreement. This agreement has been referred to in the media as a gentlemen's agreement. I have no idea why. That's what happens in this place sometimes. With the heads of agreement the target is to get the uncontracted gas—of which there is a sufficient amount—to make sure there will be adequate and reasonably accessible gas for Australians and Australian manufacturers. It is important work that this government is about to commence. We will renegotiate the heads of agreement to make sure it is effective. When those opposite were in government they implemented the ADGSM and the heads of agreement, and ever since the gas companies have ignored them. We will make sure it works and works for the Australian people. (Time expired)