Cameron Thompson (Blair, Liberal Party) Share this | Hansard source

I see the member for New England over there. He was the one I saw talking about E85 in the United States. That is an example of the flex-fuel opportunities we certainly need to be taking up in this country.

The bill is part of a government reform package: the downstream petroleum reform package. The aim of the package is to provide a more competitive retail fuel market. It has the potential to have a positive impact for consumers at the pump, and we can all hope for that but we must continue. We must find other ways to drive that forward, as I have mentioned. As a part of the package, the government will introduce a mandatory industry code for the oil industry called the Oilcode. The aim is to provide industry certainty and to make that regulatory environment uniform. This will encourage investment and employment in what is a major industry in this country, as well as achieve transparency and competition in petroleum pricing.

The Oilcode will cover the relationships between suppliers and retailers. The terminal gate prices provisions in the code will improve the transparency in the industry and create an even and fair opportunity for operators. All customers, small businesses or supermarkets, franchises or commission, will have access to fuel at the published terminal gate price. Dispute resolution is also covered in the Oilcode to ensure the industry participants have access to ongoing cost-effective resolution without the need for involving the courts—and I say ‘Hear, hear!’ to that.

If we look at the quotas that are allowed, the quota allowed to BP is 87 and it has 87 current sites. Caltex’s quota is 136, and it has 87 sites. Of course, it has also got its arrangements with Woolworths. Mobil’s quota is 87; current sites, one. Quite obviously, that has been divested as well. Shell’s quota is 114 and its number of current sites is 16. Quite obviously, the minister and the government have responded effectively to what is an emerging change in the industry. We have taken a major step in the way we control the operation of these retail sites, but we have got to go right down to the base of the industry and we have got to provide it with alternative solutions. The idea of import replacement using ethanol will be a bonus not only to our farming industries and not only to our motorists but to our current account as well. If we can reduce the amount of our reliance on imports of oil and replace it with ethanol, I think we will be moving in the right direction. Despite the shameful activities of the Labor Party in trying to kill off ethanol, it will survive. (Time expired)

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