Peter Georgiou (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

A few weeks ago Pauline Hanson and I launched a new gas policy in Perth. It is aimed at benefiting Australians and ensuring that as a nation we get full value from the sale of our offshore gas. This all came about because, before becoming a senator back in March, I was shocked to learn that neither major political party have been willing to address the generous taxation regime which has resulted in Australians paying foreign-owned multinationals to take our gas and never pay for it. Before I go on, I do want to acknowledge that there is a lot of heavy investment in setting up shop. INPEX, for example, a Japanese-owned company, has invested billions of dollars in WA and in Darwin to produce a gas project which has a 40-year life span. That is all well and good and there have been thousands of jobs created in the construction phase, but where the situation gets ridiculous for me is the way oil and gas companies are allowed to treat expenses when calculating their profits.

Next time you look at your gas or electricity bill, just remember this government allows petroleum and gas companies to claim more in expenses than they actually paid, which in effect represents a subsidy by the Australian taxpayer. Let me explain. These gas giants are able to claim 18 per cent more than what they pay for goods and services in the first year when calculating their income tax. If they don't make a claim then the expense of the previous year compounds at 18 per cent, year upon year, until it offsets income derived from production. But here is the kicker, Acting Deputy Speaker Leyonhjelm. A clutch of gas companies represented by the Australian Petroleum Production and Exploration Association, APPEA, are sitting on $250 billion of Australian tax credits, which mean that these multinational companies will never pay income tax on the profits they make. The companies will, however, make billions of dollars from our gas, and those profits will find their way to some tax havens and to their shareholders. The Reserve Bank has suggested Australians buy shares in these companies if they want to benefit from Australian gas.

One Nation has proposed changes to the tax regime which will see gas companies pay something for our gas. But these companies want to pay nothing and they are prepared to spend big to destroy anyone who suggests Australians should get something for their natural resources. Mining companies paid Western Australia $39 billion over the past decade, so what is wrong with One Nation's policy proposing a payment for WA's gas off the coast of Western Australia?

One Nation proposes a uniform royalty of 10 per cent on the wellhead value of gas, which means these companies pay something for the gas they take. The proposal is vigorously opposed by the companies and their peak body, APPEA, which has accused One Nation of having anti-energy policies. APPEA says that a federal royalty, like the one on the North West Shelf, is a bad idea, comes at the worst possible time and will raise less tax than the petroleum resource rent tax. Only gas projects on the North West Shelf pay a royalty. All other fields pay absolutely nothing. I understand multinational gas companies would like to pay nothing for the gas they take and pay nothing on the profits they make by selling our gas, but this is not fair to all Australians as this gas is owned by all Australians. The budget papers show that, in 2017-18, the government expects to receive $800 million in tax for oil and gas, but most of this tax is related to the waters off Victoria and is paid by BHP. Nothing is paid for the gas taken off the coast of Western Australia, other than the North West Shelf, which makes us the biggest exporter of LNG in the world. The gas companies are willing to consider paying for our gas and want to discredit One Nation for suggesting they pay more than nothing.

In addition to royalties, One Nation wants a 'use it or lose it' policy applied to proven gas reserves, but companies with leases as old as 30 years say they want to hold onto them for as long as they want. The effect is to limit supply and drive up gas prices, which is what they accuse One Nation of doing. Our 'use it or lose it' policy would see more gas on the market and prices fall. Let it be clear and let's call out the elephant in the room: Australia faces a crisis because we do not have internationally competitive gas prices in the eastern states. The problem could be overcome with a pipeline from west to east or by shipping LNG to the East Coast and putting it into the eastern coast states' grids.

AGL have already announced and are looking at floating a regassing platform in Victoria. We have abundant conventional gas off the West Coast of Australia and we have the right to benefit from it. Other countries have negotiated much better deals with multinational gas companies, and it is not too late for us to be paid for our gas. APPEA can huff and puff all they like, but One Nation is not giving in to their tactics. One Nation cannot be bought, and that presents a real problem for APPEA because that has worked well on so many other parties.