Senate debates
Monday, 19 June 2017
Matters of Public Importance
Energy
4:40 pm
Anthony Chisholm (Queensland, Australian Labor Party) Share this | Hansard source
The export gas industry in Queensland has really driven economic growth over the past decade. We have seen particularly in Gladstone the development of export facilities by a number of companies that have created thousands of jobs in that area and economic opportunity for the region. Since those facilities came into operation they have employed substantially fewer people than they did during the construction phase. That has also been the case in the downstream operations, largely in western Queensland, where they benefited from some booming economic activity during the construction phase.
It concerns me, having spent time in Gladstone and having seen what it was like while these facilities were booming, that some of these facilities have gone from employing a couple of thousand people to now fewer than 200. You get a sense of the economic downturn that has occurred as a result of these production facilities moving into operation. But we also are seeing a flow-on effect from these export contracts that have been signed to justify the development of these facilities. We are seeing a domestic shortage that is impacting on industry and affecting jobs. That is of significant concern to me.
I would like to acknowledge the contribution of Senator McAllister, who gave a very thoughtful analysis of the situation and also provided some solutions to the challenge we face. For me this debate highlights a couple of issues. One is the hypocrisy of Senator Hanson on this issue. I will deal with that in a bit more detail later, but I will just say that Senator Hanson is happy to say one thing in this chamber but another thing when she is in western Queensland and in communities that are being impacted by coal seam gas exploration.
This debate also highlights the emerging energy crisis we are seeing from the Turnbull government. They have no idea how to address it. We have seen no substantial response from this government to the Finkel review, which was delivered more than a week ago now, other than continued discussion and debate, which they are actually trying to pass off as business-like. Well, that is a different business meeting than any that I have ever been involved with, with the screaming match that has been reported in relation to former Prime Minister Abbott and one of his opponents. But we have also seen inconsistency from them over a number of months when it comes to the domestic gas issue. As recently as 6 March this year Senator Canavan was arguing against a gas reservation policy to alleviate the cost pressures in the domestic gas market. He was quoted as saying, about gas reservation:
I think they'd be a band aid solution which would be unlikely to be effective in the short term, and would be quite damaging in the long term. Let's hope we don't get there.
But less than two months later, on 27 April, we saw Prime Minister Turnbull announcing an Australian domestic gas security mechanism. To quote from his media release:
The Turnbull Government will secure domestic gas supply with the introduction of export restrictions to ensure the Australian market has adequate supplies before exports are permitted.
In their words, this government is applying bandaid solutions which they say can actually be quite damaging in the long term.
Industry needs certainty and not knee-jerk crisis summits and constantly changing policy from those opposite. Again, as we have seen over the last two weeks in the response to the Finkel review that was handed down, the Abbott-Turnbull 'war', that is at the heart of this government, has led to policy paralysis on energy issues and also on gas. The government is responsible for the parlous state of the electricity sector and emissions policy in this country. Wholesale power prices have doubled under the Turnbull government and retail prices are shooting up due to investment uncertainty being fuelled by this government. What we have seen is the triple whammy under this government: power prices are up, pollution is up and jobs are down. That will be the lasting legacy of this government. It is more interested in internal party politics than governing and creating solutions to this issue which will affect jobs across Australia.
It is important to reiterate the Labor policy on gas. Labor have been warning about the problems in the gas market for many years. Since 2015, we have advocated a gas export national interest test, and through 2017 we have been warning that more drastic measures were needed to address the short-term crisis that the Turnbull government has let develop under its watch. The government's policies on gas are not enough to secure supply certainty, reduce power prices and protect jobs for the long term. I believe that the gas shortage is going to get worse before it gets better.
Labor has been urging the government to copy our policies and to adopt them, which are: a permanent national interest test for the gas market so that Australian businesses and households are at the front of the queue; establishment of a domestic gas review board to consider whether any new gas export facility or proposal to expand an existing one would meet Australia's national interest; and requiring foreign companies to say how much gas they plan to make available for local manufacturers and households. Indeed, my own union, the Australian Workers' Union, have been advocates for a domestic reservation policy for a number of years. I think their stance on this has been vindicated, unfortunately, by what we have seen over the last couple of months.
What this motion also highlights, and what Senator Hanson's speech highlighted, is that One Nation will continue to sit on both sides of the fence when it comes to energy and coal seam gas. They hypocritically call for cheaper energy, yet also oppose coal seam gas exploration at the same time—they clearly want to have their cake and eat it too. One Nation's policy states—and this is directly from their website:
One Nation opposes CSG Mining until there is substantial evidence that it does not affect people's health, the environment, our farming and water.
Yet, here today, they are complaining about the price of gas that CSG mining creates. You would have to ask: where do they think the gas comes from?
We also know of a topic that has substantial evidence that it does 'affect people's health, the environment, our farming community and water'. It is, of course, climate change. But One Nation do not care about that. It is CSG that they have focused on. Senator Hanson has had many different views on coal seam gas, even just in the last three years. It really depends on which parliament she is running for. In an article titled 'Hanson to lead One Nation against Lockyer CSG', on 16 December 2014, then candidate for the state seat of Lockyer Pauline Hanson argued against coal seam gas mining. The article says:
Pauline Hanson has declared for the seat of Lockyer in the 2015 Queensland election saying she would fight for the farmers and against coal seam gas.
Ms Hanson, who returned recently to lead the One Nation party, made the announcement at a Crowley Vale farm in the electorate saying she was prepared to "go in all guns blazing."
This is the hypocrisy that we see from Senator Hanson on this issue: three years ago campaigning against this, ramping up community concerns about exploration, and now coming in here and bemoaning that it is being sold too cheaply overseas. While you cannot ignore the need for more exploration—sure it is not the most important issue in this debate—increasing gas exploration is one that is important if we are to see more supply to the domestic market.
Then we have to look at Senator Roberts. I daresay a conversation between Senator Roberts and Senator Hanson on this issue would be quite an exciting one. Senator Roberts has said that when it comes to the Finkel review 'the only priority should be making energy as cheap and reliable as possible'. Then we see Senator Roberts responding to Josh Frydenberg on energy prices:
Josh, the cause of power prices soaring is government intervention. The solution is not more government intervention.
You cannot get a consistent line from One Nation on this important issue. A tweet from Senator Roberts on 8 February this year condemns the 'gutless Victorian Liberals' who 'want to ban gas drilling'. He is happy to target the Victorian Liberals on this issue but ignores the concerns that Senator Hanson has expressed. I think it should make for an interesting party room discussion between Senator Hanson and Senator Roberts. One Nation needs to get some consistency on this important issue. But once again it just shows how out of touch One Nation are. This is an important issue to Queenslanders and Australians. Jobs are at stake. They need a consistent line on it.
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