Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Energy and Emissions Reduction, Senator Zed Seselja. Can the minister advise the Senate on the importance of gas in Australia's COVID-19 recovery, especially in rural and regional Australia?

Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I thank my friend and colleague Senator Canavan for the question. A gas-fired recovery is a key part of the government's JobMaker plan and it is central to a strong Australia as we recover from the coronavirus pandemic. Australia's competitive advantage has always been based on cheap energy, and gas will be central to our ongoing economic recovery. We want to see Australian gas working for all Australians, especially in our regions, and we're taking action to deliver more Australian gas to where it is needed at the right price. This will be delivered through a comprehensive plan of 13 measures that will establish an open competitive hub model, like the Henry Hub in the United States.

The three key action areas are unlocking supply, efficient transportation and empowering consumers. We're progressing a range of regulatory reforms and assessing what critical national gas infrastructure is needed to create a competitive gas market that will drive down prices. We're investing $220 million to support development in the Beetaloo Basin. We've ensured that major gas exporters offer more gas on the domestic—

Hon. Senators:

Honourable senators interjecting—

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

Order! Senator Canavan, this is not helping. We're wasting question time. Senator Keneally, you've been particularly voluble this question time. I ask you to restrain yourself for the last 10 minutes. Senator Seselja to continue.

Senator Sterle interjecting—

Senator Sterle, count to 10, silently.

Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

We've ensured that major gas exporters offer more gas on the domestic market more often and on more competitive terms, meaning lower prices. We're developing an industry code of conduct to address pricing principles, and all of our collective efforts are delivering results. Even before COVID-19, we saw reductions in the domestic spot price across eastern Australia, and these prices have continued to fall. Wholesale gas prices on the east coast during 2020 were around 40 per cent lower than prices in 2019, and these prices remain low. Lower gas prices are also driving down wholesale electricity prices. Those opposite can't even work out if they support gas. But, thankfully for Australian households and businesses, we are consistent on the issue.

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

Senator Canavan, a supplementary question?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Can the minister outline how Australia's manufacturing sector will benefit from a gas-fired recovery?

Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I thank the senator. Gas is a critical enabler of Australia's economy. It supports our manufacturing sector, which employs over 850,000 Australians, and is an essential input in the production of a range of items such as plastic for PPE and fertiliser for food production. Ensuring a reliable, stable and affordable supply of gas to power Australian jobs and industries is one of the highest priorities of this Liberal and National government. Those opposite don't have a plan to secure the dispatchable capacity that the manufacturing industry will rely on into the future. We know, Senator McAllister, what your plans are, because Labor's real plan is always higher taxes—more and higher taxes. We saw it at the last election with their $387 billion plan for more taxes. They've only got one plan. The Liberals and Nationals can deliver the secure, reliable and affordable energy that will underpin our economic recovery, create new jobs and grow our manufacturing sector.

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

Senator Canavan, a final supplementary question?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Can the minister also outline to the Senate how gas can help bring down energy prices for everyday Australians and any risks to delivering increased gas supply and lower energy prices?

Senator Watt interjecting—

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

Order! Senator Watt, we cannot slip to the point where I can't hear the question.

Senator Watt interjecting—

Remember my rule, Senator Watt: count to at least 10 after your name is called, silently.

Zed Seselja (ACT, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I thank Senator Canavan for the question, and I thank Senator Watt for the interjection, because he's forgotten what he stands for. I'm asked whether there are risks. There are a number of risks: the Leader of the Opposition, the shadow minister for energy and, of course, the shadow minister for Queensland resources. He is a risk. You talk about forgetting what you stand for. You can imagine going back to activist Murray Watt—how he would be shaking his head now—back when he was handing out free joints at university. He would be shaking his head that he now has to pretend to support the Queensland resources industry. Does he actually support it or does he just have to pretend? It reminds me of George Costanza having to pretend to be an architect—at least his heart was in it, Murray! We support the gas industry whether the Labor Party does or not.

Government senators interjecting —

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

Order, on my right! We're not going to get into desk banging.