Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Hansard source

I thank Senator McMahon for the question. The Liberal-National government is taking strong action to further boost Australia's long-term fuel security, and it is doing it by locking in the future of our refining sector. Our economy relies heavily on energy from liquid fuels, and this will continue to grow. Diesel is our most important transport fuel, and Australians use more diesel than electricity. It's also the critical fuel source during an emergency—powering the trucks that move our food, our pharmaceuticals and our emergency services vehicles. That's why we're increasing the amount of diesel we keep onshore. Holding more diesel in Australia will increase our resilience to supply disruptions, protecting consumers and the economy from fuel shortages.

We are investing $200 million through a competitive grants program to build new diesel storage. This is just part of our plan to ensure that Australians have access to the affordable, reliable and secure supply of fuel they rely on. We are ensuring we have access to the fuel we need to keep Australia moving. Our comprehensive fuel security package will also lock in around 4,000 jobs, construction jobs, and protect those at refineries. The Greens and Labor may not like it, but this will be done through a variable production payment, meaning the refineries will only be paid when they need it, not when they're making profits. Our package will also enhance Australia's national security and keep fuel prices for consumers among the lowest in the OECD.

The events of 2020 have reminded us that we can't be complacent. We're taking the action now to shield us from potential shocks in the future and to enhance our national security. Our plan will help ensure Australia has the appropriate sovereign capability it needs for any event. We're protecting families and businesses from higher prices and supporting thousands of jobs across the economy as we recover from COVID-19.