Senate debates

Tuesday, 12 September 2017

Questions without Notice

Energy

2:38 pm

Photo of Chris KetterChris Ketter (Queensland, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Resources and Northern Australia, Senator Scullion. Yesterday, Senator Brandis claimed that the government had already triggered gas export controls, saying, 'We have restricted gas exports.' Can the minister confirm the government has not yet restricted gas exports?

2:39 pm

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

I can confirm that we have constructed, with all in this place, a trigger that can ensure we direct current exports going offshore to inshore deposits. The question really goes to the timing of this mechanism and this trigger. If those opposite had actually focused on the piece of legislation and the regulations that flowed from that, they would know it doesn't matter when we pull the trigger between now and 1 November; the trigger doesn't come into effect until 1 January. You are just going to have to wait until after you open your presents! Just take a chill pill about this. We have until 1 November to pull the trigger on this mechanism, which has been put in place to send a clear signal to industry—which have obviously got the signal because there have been significant changes with regard to gas being placed on the domestic market.

I call on those opposite to actually try to better understand the circumstances. I will explain again for their benefit, Mr President. You can pull that trigger today or tomorrow, up to 1 November, and on 1 January, by agreement with the industry and those in this place, that trigger will take place. It gives the industry two full months, eight weeks, to get that in place. The most important aspect of this is that we need to ensure that this is pulled when industry aren't moving themselves.

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | | Hansard source

All talk, no action.

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

That is just simply not true. We have seen a number of significant measurements of gas, around 60-odd petajoules of gas, put on the market and taken away from offshore. There has been a gas swap involved. All of these have been changes that we think this mechanism has actually determined.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Ketter, a supplementary question.

2:41 pm

Photo of Chris KetterChris Ketter (Queensland, Australian Labor Party) Share this | | Hansard source

On 24 July, the former Minister for Resources and Northern Australia, Senator Canavan, issued the legal instrument which notified the government's intention to pull the trigger on gas export controls. Why has the current Minister for Resources and Northern Australia, Deputy Prime Minister Joyce, failed to issue the subsequent instrument?

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

I direct the senator to my previous answer. But I will reiterate: we have until 1 November to pull the trigger.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | | Hansard source

It doesn't matter what you do.

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

We have until 1 November to pull the trigger. If I can just indicate, we welcome, as Australia should, Santos's recent announcement that it had signed an agreement to supply 15 petajoules of gas into ENGIE's Pelican Point power station in South Australia. We welcome their gas swap deal announced on 30 August, where they committed 18 petajoules per year over three years, with an option to extend into the domestic market—exactly what this mechanism was intended to persuade them to do, to change behaviour, which is evident. We welcome their recent announcement with their GLNG joint venture partners, where they will be supplying 30 petajoules of gas to the east coast domestic market. (Time expired)

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Ketter, a final supplementary question.

2:42 pm

Photo of Chris KetterChris Ketter (Queensland, Australian Labor Party) Share this | | Hansard source

Given the government has failed to pull the trigger on the restriction of gas exports, can the minister explain why the Leader of the Government in the Senate claimed it had?

2:43 pm

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

I think we have had much the same question, so rather than directing I will try to put it in a different context. It doesn't matter whether we pull it today, tomorrow or the next day; it will happen and will only happen on 1 January by agreement. I didn't hear a bleat from the other side that this process wasn't the right process when we brought in this regulation. We didn't hear, 'We need to suddenly turn the gas from offshore to onshore'—somebody wrestling with a large tap every day, running up to 1 November.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Cameron, a point of order?

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | | Hansard source

Yes, a point of order on relevance. The minister was asked to explain why the Leader of the Government in the Senate claimed the trigger had been pulled.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

I remind the minister of the question. Minister, you have the call.

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

The context for it from the Leader of the Government in the Senate is that we now have a trigger. That's exactly what happened. There was no implication that the gas trigger had been pulled in the context of his very comprehensive and informative answer.