Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 14 June 2017:

The tax and royalties collected from the extraction and sale of Australia's oil and gas resources, with particular reference to:

(a) the adequacy and integrity of the existing Petroleum Resource Rent Tax (PRRT) and Commonwealth royalty regime;

(b) compliance with the PRRT and Commonwealth royalty regime;

(c) responsibilities and effectiveness of state and Federal Government departments in administering the existing PRRT and Commonwealth royalty regime;

(d) the suitability of the PRRT and Commonwealth royalty regime in the modern global economy;

(e) the comparison of tax and royalty regimes with other oil and gas producing countries that export to the Asia-Pacific region;

(f) principles for modification of the PRRT as it applies to gas;

(g) principles for an extended Commonwealth royalty regime covering offshore oil and gas projects in Commonwealth waters; and

(h) any other related matters.

Katy Gallagher (ACT, Australian Labor Party) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Katy Gallagher (ACT, Australian Labor Party) Share this | Link to this | Hansard source

The opposition will be opposing this motion. The resource royalties regime in Australia is generally robust. The recent ANAO report and commentary in the media has, however, raised some questions about the resource royalty and taxation regime. While noting that the ANAO did not make any adverse findings against resource companies, we are concerned about issues raised in the report regarding the management of the system by the current government. Labor want to see immediate action from the government regarding the important issues the ANAO report raises. We believe the terms of reference of the Senate Economics References Committee— (Time expired)

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

It seems as though everybody wants to move to have some kind of inquiry into this. The government has today announced it is going to be appointing an independent consultant, Mr Peter Costello's previous chief of staff. The Labor Party is saying that it is going to have a look at this in the tax avoidance inquiry. The Greens have had advice from the parliament that that is inappropriate given the terms of reference.

We do not understand why Labor will not support this motion. It seems as though it wants to shoehorn gas royalties and the PRRT into the corporate tax inquiry, which will not look at this. These companies pay no tax, not because they are avoiding tax but because the laws we have put in place allow it. Our resources tax regime is completely broken, but it seems as though Labor does not want to take the opportunity to fix it. Perhaps it is because previous Labor ministers have gone to work for the oil and gas industry. We need to get to the bottom of this. The references committee we are proposing will do that.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

I will just indicate that generally it is one speaker per party.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

But you said I could.

Stephen Parry (President) Share this | Link to this | Hansard source

Well, I am just telling you what the convention is. So, you run the risk of having leave denied. But leave is granted for 20 seconds.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

The terms of reference that already exist for the Senate Economics Committee inquiry into multinational tax avoidance will give us plenty of opportunity to look at this issue. I could not agree more with the sentiment of what Senator Whish-Wilson has been saying, but the terms of reference of that inquiry give more than enough opportunity. And I will also use this time to wish everybody a merry Christmas.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

The floodgates have opened! I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for 20 seconds.

Richard Di Natale (Victoria, Australian Greens) Share this | Link to this | Hansard source

For the benefit of Senator Gallagher and Senator Dastyari, we are prepared to table the advice we have received from the Clerk that says that issue cannot be dealt with through the multinational tax avoidance inquiry. That is why it requires a standalone reference, which is what the Greens are prepared to do. It is hard to escape the conclusion that this is anything other than the backing of your corporate donors.

Stephen Parry (President) Share this | Link to this | Hansard source

I will just indicate to the Senate that the Procedure Committee has examined this issue and, in relation to the discovery of formal business and formal motions, it has been determined—more by convention, not by want—that short statements of one minute are normally granted to provide an explanation, not to be used for debating points. Also, the convention has been that only one senator per party would ever speak, and I just remind the Senate of that—obviously any senator. And the Senate can grant leave for any course of action. But I just remind the Senate of the purpose of this. This is the discovery of formal motions, where debate is not entertained.

The question is that the motion moved by Senator Whish-Wilson be agreed to.

Question negatived.

Debate adjourned.