Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Hansard source

I thank Senator McKenzie for her question and thank her for taking me around her beautiful part of the world—regional Victoria—along with the member for Murray, Mr Damian Drum, as well. I did visit Victoria because of concerns that have been raised with me and the senator from Victoria about rising electricity prices and gas prices. We heard a very consistent message from businesses throughout regional Victoria that they are facing gas price increases to almost double what they paid a year or two ago and, likewise, increases in electricity prices as well. I am very concerned about those impacts because they potentially impact on jobs and on the abilities of businesses to stay open, and that is why the government is acting on this.

Principally, it is the responsibility of states and territories to develop gas resources in this country. But, nonetheless, because of that impact potentially on jobs the government and the Prime Minister last week convened a meeting of industry executives to talk to them about how we can get more gas flowing in this country. I am happy to report that the Prime Minister made it very clear to the gas industry that we expect our resources to be used for our nation's interest and to create jobs in this country. That was the clear message received by the industry. In fairness to the industry, they accept that. They accept that to develop our nation and our people's resources they should be providing that security to Australia.

From that meeting, we have received a commitment that gas companies will provide gas in times of peak demand to bring down the prices in our electricity market, that they will direct more gas onto the domestic market in response to market conditions and that we will create greater transparency in the marketplace through the ACCC and the Burdekin review. We expect that if these commitments are met there will be downward pressure on prices. The Prime Minister made clear that if we do not see those things happening we will seek to take further action consistent with our powers at the Commonwealth level to ensure we have jobs in this country and development of the manufacturing sector. (Time expired)