Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

in reply—In concluding the debate on the Australian Energy Market Amendment (Minor Amendments) Bill 2008, I firstly thank the member for Flynn for not only his informative contribution in the context of the issues currently before the chair but also what is clearly his view about the potential development of the area in which he lives and that he represents. I agree that Gladstone has a very bright future because of not only the importance of a range of industries such as coal and aluminium but also, all of a sudden, the issue of LNG. It is no longer just a west coast consideration; it is potentially a major industry for the east coast of Australia. In the very near future we could see key developments in the Gladstone region and in the Surat Basin, including the development of an LNG industry based on coal seam methane. That will be potentially exceptionally important for the east coast from the point of view of not only domestic gas but also exporting to the region in which we live—which is crying out for energy capacity at the moment. As the minister, I am pleased that we have a member representing this key industrial area of Australia who not only well appreciates the challenges to his own region to meet these demands for development but also realises the importance of them for the nation at large and the global community.

On that note, I brought this bill to the parliament on behalf of the government with the support of my colleagues on the Ministerial Council on Energy. The council desires that we continue our progress towards an efficient and effective national regime for the regulation of gas pipeline services. By passing the bill, the Commonwealth parliament will play a key role in facilitating the Ministerial Council on Energy’s cooperative gas access regime. This is not only of national importance; it is also about ongoing microeconomic reform in Australia—something which was the cornerstone of the Keating and Hawke Labor governments. It is about improvements in productivity and guaranteeing that Australian industry is competitive, especially in a very tough global community. This regime will be underpinned by lead legislation enacted in the South Australian parliament, to which the National Gas Law will be a schedule. The National Gas Law will then be applied by all remaining jurisdictions, including the Commonwealth but excluding Western Australia, through legislation known as the application acts. Western Australia will pass complementary legislation with contents similar to the National Gas Law, rather than apply the National Gas Law established by South Australian law.

This bill makes minor amendments to the Commonwealth’s application act, the Australian Energy Market Act 2004; the Administrative Decisions (Judicial Review) Act 1977; and the Trade Practices Act 1974 to correct references to the South Australian lead legislation and to the Western Australian government’s complementary legislation. These amendments are required to ensure that the Commonwealth application legislation correctly applies South Australian and Western Australian legislation in the offshore area, and correctly empowers the Commonwealth bodies under the regime. The National Gas Law has been subject to a rigorous consultative process engaging all relevant stakeholders. The final legislation has taken into account issues raised by stakeholders. I appreciate the assistance of stakeholders in finalising this legislative package. Passage of the bill will make minor technical amendments to the Commonwealth’s application act, which will allow the smooth implementation of the cooperative energy reform agenda. These issues were also subject to further discussion and report at the Ministerial Council on Energy meeting held in Canberra last Friday. I can inform the House that the bill has the full support of all my state and territory colleagues on the Ministerial Council on Energy.

I would like to thank all those members who have contributed to this debate. It might seem a minor bill in the minds of some people, but I regard it as a significant economic bill in terms of where we are going on the all-important energy front. I appreciate the contributions of the member for Groom, the former Minister for Industry, Tourism and Resources, who prior to the last election had responsibility for this area of government activity; the member for Wills, Kelvin Thomson; the member for Flynn, Chris Trevor, who I have already referred to; the member for Dawson, James Bidgood, a very good local member; the member for Corangamite, Darren Cheeseman, a fellow Victorian; and also the members for Cowper, Ryan and New England. I note and appreciate the member for Groom’s support as the former minister, and I would also like to place on record my appreciation of his work as Chairman of the Ministerial Council on Energy over several years. I now appreciate, as the new chairperson of that organisation, just how tough it is herding eight state and territory ministers together to get a uniform, common national outcome, and I give him credit for sustaining that process over a number of years. I also note his remarks in relation to the development of gas and other energy resources in Australia and his warnings that government should not interfere in the normal operations of the market—views which I share.

I note the member for Cowper’s remarks in relation to the removal of the excise exemption on condensate, and his unwarranted claim that this will have a disincentive effect on exploration. However, I simply say that, in my mind, the member understands the real situation on the ground. The recent budget changes which are currently before the Senate relate to excise payable on condensate and are only applicable to the North West Shelf. They will therefore have no impact on the taxation regime applying in areas yet to be explored. Therefore—and I stress this—the budget changes represent no disincentive to further exploration.

I also note the member for New England’s remarks in relation to biofuels. I appreciate that he has been a constructive contributor to this complex debate over many years but I reject his suggestion that the government is sending mixed messages to the community in relation to support for renewables. The government has consistently recognised that biofuels—in particular, second generation biofuels—are part of a suite of technologies to mitigate climate change and address Australia’s greenhouse gas emissions. The government is wholehearted in its support both for renewable technologies, including the renewable energy target and the emissions trading scheme, and for carbon capture and storage technologies. I note the member’s comments regarding the emissions trading scheme and urge him to put his views forward in response to the government’s green paper on the emissions trading system, which the Minister for Climate Change and Water, Senator Wong, will release for public discussion and consideration in July.

The member for Ryan made comments about support for solar activities. I simply say in response that the member should more thoroughly examine the recent budget papers and the commitments given by the government. There is a renewable energy fund of $500 million. There is also the $150 million Energy Innovation Fund, $100 million of which will be allocated for solar PV and thermal research and development, which is a very significant contribution. I would also remind him that, in terms of the development of solar and other renewables, he should not just have regard for government programs and potential grants, which will be allocated on a merit basis. He should also pay more attention to the potential impact on the renewable energy industry, and the encouragement it will receive as a result, of the introduction of the emissions trading scheme and the renewable energy target of 20 per cent by 2020. It is a package of climate change programs, and changes to the method of operation of the Australian community, which will be of considerable long-term benefit to the renewable industry. If anything, this package will be a world-first and provide leading-edge encouragement to the renewable energy industry.

Finally, I thank the member for Dawson for his comments on tourism, and I wholeheartedly support his enthusiasm for Film Australia. I appreciate the contributions of other members on both sides of the House. I think these debates are exceptionally important because they raise a range of issues of not only national importance but also local and regional importance to communities around Australia. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.

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