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

My question is to the Minister representing the Minister for Energy and Emissions Reduction, Senator Seselja. Given the importance of diesel to Territorians, particularly those in remote locations who rely on diesel to run power generation and critical machinery, can the minister outline to the Senate the importance of diesel to our economy and what action the Liberal-National government is taking to ensure we have an affordable and secure supply of diesel?

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

I thank Senator McMahon for the question. The Liberal-National government is taking strong action to further boost Australia's long-term fuel security, and it is doing it by locking in the future of our refining sector. Our economy relies heavily on energy from liquid fuels, and this will continue to grow. Diesel is our most important transport fuel, and Australians use more diesel than electricity. It's also the critical fuel source during an emergency—powering the trucks that move our food, our pharmaceuticals and our emergency services vehicles. That's why we're increasing the amount of diesel we keep onshore. Holding more diesel in Australia will increase our resilience to supply disruptions, protecting consumers and the economy from fuel shortages.

We are investing $200 million through a competitive grants program to build new diesel storage. This is just part of our plan to ensure that Australians have access to the affordable, reliable and secure supply of fuel they rely on. We are ensuring we have access to the fuel we need to keep Australia moving. Our comprehensive fuel security package will also lock in around 4,000 jobs, construction jobs, and protect those at refineries. The Greens and Labor may not like it, but this will be done through a variable production payment, meaning the refineries will only be paid when they need it, not when they're making profits. Our package will also enhance Australia's national security and keep fuel prices for consumers among the lowest in the OECD.

The events of 2020 have reminded us that we can't be complacent. We're taking the action now to shield us from potential shocks in the future and to enhance our national security. Our plan will help ensure Australia has the appropriate sovereign capability it needs for any event. We're protecting families and businesses from higher prices and supporting thousands of jobs across the economy as we recover from COVID-19.

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

Senator McMahon, a supplementary question?

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

Can the minister outline how the government's fuel security package will help secure the diesel that we rely on?

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

Yes, I can, and I thank the senator for the question. The Liberal-National government's fuel security package will help secure Australia's fuel stocks, through a minimum stockholding obligation that will protect our ability to produce vital fuels, like diesel, during an emergency. In a worst-case scenario, even if oil imports are disrupted, our refineries will have the ability to provide the fuel needed to run our critical services.

The minimum stockholding obligation will also safeguard levels of petrol and jet fuel, and from 2024 will see a 40 per cent increase in our diesel stocks to be kept in Australia. We know that this is the least distortionary way of working with the industry to improve supply-chain resilience and protect consumers. Delivering secure liquid fuels, such as diesel, goes hand-in-hand with ensuring Australian households and businesses have access to cheap and reliable power. All of these measures are critical to recovering from the pandemic, protecting jobs, growing our economy and keeping all Australians safe, including those in the Top End.

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

Senator McMahon, a final supplementary question?

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

Can the minister outline how the government is working to build our sovereign fuel-refining and -storage capacity?

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

Yes, I can. This is about sovereignty. We have delivered on our promise and locked in Australia's refining capacity—

Hon. Senators:

Honourable senators interjecting—

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

Order, across the chamber!

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

and its 1,250 employees.

Senator Thorpe interjecting—

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

Senator Thorpe!

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

Now, the Greens may not like it, but the Ampol refinery in Brisbane and the Viva Energy refinery in Geelong are both remaining in operation until at least mid-2027, and I note it has been warmly welcomed by the AWU. Supporting our refineries will ensure we have the sovereign capability needed to prepare for any event, protect families and businesses from higher prices at the bowser and keep Australians moving as we recover.

This is a key part of our plan to secure Australia's recovery from the pandemic and prepare against any future crises. This builds on the action we've already taken to boost our fuel security, taking advantage of record low global oil prices to purchase Australia's first government-owned crude-oil stocks for domestic security. We're taking action to ensure we have the fuel we need to keep Australia moving and to protect our— (Time expired)