Paul Scarr (Queensland, Liberal Party) Share this | Hansard source

Last year the government made one of the biggest public policy mistakes I have seen in my four years in this place. That was to introduce draconian market intervention laws in relation to the gas industry. Those laws gave the government the right to dictate to gas producers what they could charge for their product, who they could sell it to and the terms and conditions on which they could sell it. At the time, those of us on this side of the chamber—especially those of us who have experience in the private sector—warned that those measures would act in a way that would depress supply in the market. Why would you invest a dollar of capital in this country when the government can dictate to you what price you can sell your product for, who you can sell it to and the terms and conditions of sale. Why would you invest a single dollar in this market when you have options as to where you invest that capital?

Now we're seeing the political chickens coming home to roost. The chickens are coming home to roost. The evidence before the Senate cost-of-living inquiry on 4 August, from some of the world's biggest gas producers, is extremely disturbing. What we heard from those producers was this: what they're seeing in this country is, 'Layer upon layer of regulation', and 'Change on change on change'.

Woodside Energy's executive vice president told the committee that while historically Australia had been internationally seen as a secure investment environment, this was eroding by continued changes to regulatory settings. That is sovereign risk and it is depressing gas supply at the worst possible time in this country. (Time expired).