Louise Pratt (WA, Australian Labor Party, Shadow Assistant Minister for Manufacturing) Share this | Link to this | Hansard source

I move:

(a) notes that:

(i) since 2013, gas prices for manufacturers have skyrocketed, increasing by up to four times their levels in 2013,

(ii) according to the Australian Competition and Consumer Commission, spiralling gas prices have resulted in three manufacturers closing down and threaten the viability of many more businesses,

(iii) Australia has become the world’s largest gas exporter while our own businesses face difficulties in securing affordable gas supplies,

(iv) the Federal Government continues to refuse to bring big gas companies to heel by pulling the trigger on gas export controls,

(v) under Prime Minister Morrison, power prices have continued to skyrocket, with wholesale power price futures contracts up by 33% since former Prime Minister, Mr Malcolm Turnbull was forced out of The Lodge, and

(vi) Prime Minister Morrison’s election promise to reduce wholesale power prices to $70/mwh by 2021 would only bring prices back to the levels seen under his predecessor, Mr Turnbull; and

(b) calls on the Federal Government to take real action to reduce the cost of energy in Australia by:

(i) bringing big gas companies to heel by finally pulling the trigger on gas export controls and ensuring Australian users have access to affordable Australian gas,

(ii) guaranteeing a reduction in gas prices for Australian businesses to levels that can sustain competitive Australian manufacturing, as well as ensuring ample gas supply for Australian users, and

(iii) delivering a national energy policy that will end investment uncertainty and deliver a modern energy system including cheaper, reliable and clean power.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

Mr President, I seek leave to make a short statement.

Scott Ryan (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

. The government has taken action to ensure that Australians have affordable gas. We were the first government to establish a gas export control framework. The Prime Minister has renewed the agreement with the east coast LNG exporters to ensure gas for the domestic market. Both AEMO and the ACCC found that these actions reduced gas prices and ensured supply. Since early 2017, the spot price of gas in eastern Australia has fallen by 20 per cent. The only way to ensure long-term supply is to develop new gas reserves. It was the federal Labor government that allowed gas export projects in Gladstone to go ahead. Labor's then energy spokesperson, Mr Mark Butler, admitted that everyone knew there was going to be an impact on prices and yet they did nothing.

Larissa Waters (Queensland, Australian Greens) Share this | Link to this | Hansard source

by leave—I move the amendments to the motion, as circulated in my name in the chamber:

(1) After paragraph (a)(i), add:

(ia) Government is giving this gas away with no royalties and missing out on $90 billion in revenue with gas companies sitting on $324 billion in PRRT credits before they have to pay a cent in tax and that neither the government or opposition want to change this cosy set up or threaten future political donations,

(2) Omit subparagraph (a)(iii), substitute:

(iii) Australia has become the world's largest gas exporter, thanks to environmental approvals issued by Labor governments, while our own businesses face difficulties in securing affordable gas supplies;

(3) After subparagraph (a)(vi), insert:

(vii) gas exports increases pressure on domestic gas extraction, placing farmers' land and water under sustained threat from fracking for unconventional gas, and

(viii) new gas production will increase global emissions 25% more than new coal projects and the industry threatens our ability to stay below 1.5 degrees of warming,

(4) Omit paragraph (b), substitute:

(b) calls on the Government to take real action to reduce the cost of energy in Australia by:

  (i) bringing big gas and fossil fuel companies to heel, supporting the transition to renewable energy and ensuring Australian users have access to affordable, clean, renewable energy;

  (ii) guaranteeing a reduction in gas energy prices for Australian businesses by subsidising renewable energy developments to levels that can sustain competitive Australian manufacturing, as well as ensuring ample gas clean energy supply for Australian users; and

  (iii) delivering a national energy policy that will end investment uncertainty and deliver a modern energy system including cheaper, reliable and clean power.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that the amendment moved by Senator Waters to the motion moved by Senator Pratt be agreed to.

The Senate divided. [13:06]

(The President—Senator Ryan)

Question negatived.

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that motion No. 27 in the name of Senator Pratt be agreed to.