Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Resources, Water and Northern Australia, Senator Ruston. Can the minister please update the Senate on the Morrison-McCormack government's plan for a gas-fired recovery, including the recent heads of agreement reached with the east coast LNG exporters?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I thank Senator McMahon for her question and her deep interest in all things resources, particularly in her home territory of the Northern Territory.

Everybody understands that cheaper and more reliable energy is going to be absolutely fundamental to the economic recovery of Australia as we recover from the COVID pandemic. It's going to be particularly important for our JobMaker plan, as we get Australians back into work and fuelling our economy. Our gas-fired recovery is absolutely essential, and we'll be supported by the reset of the east coast gas market. We'll do this by unblocking gas supply, delivering efficient transportation and empowering customers to make sure that we are providing the best possible energy source for Australia.

Last month the coalition announced a new heads of agreement with the three East Coast LNG exporters operating out of Gladstone. This means all uncontracted gas produced by the LNG projects will now be offered to the domestic market at internationally competitive prices before it is offered into the international market. This agreement, alongside the Australian Domestic Gas Supply Security Mechanism, will continue to put downward pressure on the price of gas to ensure more gas is offered in the domestic market at a more affordable and competitive rate.

Simply put: what we've done will push down the prices as a result of increasing supply. That means Australian businesses and Australian families will have the affordable and reliable gas that they need. It's about making sure that Australian gas works for Australians whilst supporting economic growth and backing the very, very important regional jobs that are on the back of this very important sector.

More supply has brought more competition and lower prices, and it will support our manufacturing sector. At the same time we will support Australia's pursuit of reducing emissions. Gas is absolutely critical for manufacture—

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

Order, Senator Ruston. Senator McMahon, a supplementary question?

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

Can the minister please outline how our government is ensuring sufficient gas supplies for Australia?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

The Morrison-McCormack government is delivering five strategic basin plans to unlock new gas potential across Australia. We're starting with the Beetaloo basin, which is in Senator McMahon's home territory, the Northern Territory, as well as the Northern Bowen and Galilee basins in Queensland.

The government has announced a commitment to provide up to $50 million for exploration of the Beetaloo basin, plus $173 million to upgrade the roads to make sure of that essential access. The Beetaloo basin will bring jobs—Senator McMahon, I know that's something that is very, very important in your home territory—as well as much-needed investment into northern Australia. But, most importantly, it will bring affordable gas prices. Affordable gas is absolutely essential. No-one could question that the economic prosperity of this country and our manufacturing strategies will be enhanced by affordable and accessible gas supply. The government is absolutely committed to giving companies confidence, to make sure that we can build on our economic recovery.

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

Order, Senator Ruston. Senator McMahon, final supplementary question?

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

Can the minister advise why it is so important to ensure affordable and reliable gas supplies, and of any risks to affordability and reliability for Australian industry and consumers?

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

The government's position is absolutely clear in this regard. Unlocking gas reserves is a key to Australia's economic prosperity and our continued recovery from COVID.

Part of that is making sure that we provide certainty and the confidence to make sure that we have the essential investment in these critical resource projects to open up our economy. The Labor Environmental Action Network, championed by some senators in this place, would seek to stop new gas projects and would actively behave to ban gas. Basically, this network is responding to inner-city greenies at the expense of everyday Australians and the regional economies that so many on this side believe are so important for our Australian economy.

The member for Hunter has labelled them 'fundamentalists' who have no idea about supporting real workers and real jobs. It's pretty hard to disagree with the member for Hunter when he makes those sorts of comments. We will support regional Australia and we will support a gas-led recovery.