Trish Crossin (NT, Australian Labor Party) Share this | Hansard source

I rise in response to the taking note motion by the opposition. I start by saying that this opposition failed when it was in government to move this country forward in terms of productivity, innovation and excellence. It never really had a grip on actually managing this country to the best of its ability. It showed that today in question time when it was not even able to get its ducks in a row and ask questions properly to us here in government. It wasted question time like it wasted its many, many years in government. Not only that, it either did not know the standing orders or refused to abide by the standing orders by seeking leave to ask a question of the chair of the economics committee. It really goes to show that the people in opposition, and rightly so, do not really have a handle on what is best for this country. I would have thought question time would be an ideal opportunity to ask questions of the minister, and if you choose to ask questions of committee chairpersons at least do the Senate the courtesy of abiding by the standing orders. We had question time wasted today, like we have had years in government wasted by the Liberal and National parties.

But we cannot have it both ways. The Liberal Party cannot have it both ways if it wants to raise this issue. Let me just put on the table some facts for people about this whole propensity that goes to the fact that Western Australian families will be paying higher gas prices, which is not right and is quite contrary to what happened some years ago. Thirty years ago, we had a few companies getting a tax exemption for condensate that is no longer needed. It delivered them windfall gains not available to anyone else. An agreement was struck 30 years ago on a tax exemption that applied then and still applies now. These are windfall gains that actually belong to the Australian people.

After 30 years of this tax exemption, the North West Shelf project is now mature and profitable—in fact, extremely profitable—and the companies benefiting from this concession, particularly Woodside, are enjoying huge profits from rising international oil prices. It is quite evident from the questioning today from the Liberal and National parties on the other side of this chamber that they care much more about the windfalls gained from one project than about lowering inflation and about interest rate rises that affect families who are doing it tough. They choose to waste their question time asking us questions about this, which is really not an issue that needs to concern us if you have a look at the history and the facts. The windfall gain between 2001-02 and 2006-07 was around $1.4 billion and would be even higher now. So, if Woodside had paid condensate tax this year, its profit would have been not $1 billion but $950 million. That is still $340 million more than its profit at this time last year.

Let me say that this measure removes a tax exemption for condensate. It is not a tax on gas. Those opposite have been told that this measure will not put up gas prices but, of course, they will not believe or accept it and want to raise this as an issue when it is not an issue. Even the CEO of the North West Shelf Venture told the Senate that our current domestic contracts are in place and will be honoured. The contracts are all for many, many years and are long-term contracts. The Treasury told people on the public record, at the Senate Standing Committee on Economics hearing in Canberra on 11 August, that they would not expect it to have an impact. In case anyone is starry eyed about these companies, back in 2001 there was a tax cut worth $460 million that was not passed on as lower prices to consumers. You cannot have it both ways. This government believes that it is fair enough to have incentives to get major resource projects up and running, but once they are up and running the Australian people must have fair value from them, and we make no apologies for making sure that that happens. As everyone knows, there is no justification for Woodside to claim that domestic prices will increase as a result of this tax, and the ACCC, under the Trade Practices Act, has the power to investigate prices and anticompetitive conduct. (Time expired)