Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Change, Environment and Water) Share this | Hansard source

The Fuel Quality Standards Amendment Bill 2009 addresses four issues which flow on from the work which the coalition did whilst in government in laying down the original legislation, the Fuel Quality Standards Act 2000. Those four issues relate not only to our independence and fuel security but also to the quality of our air and our environment. The first is about fuel security and independence. The original act which we put in place, the Fuel Quality Standards Act 2000, contained measures which would ensure that we were able to make rapid decisions in times of shortfall to improve, protect and enhance the flow of vital fuel to Australia. Secondly, it was also about local air quality. Local air quality is about the quality of fuel, the particulate emissions and the impact on people if they have heavy transport or light transport near where they live. Thirdly, it is about energy efficiency and the quality of our fuels in delivering more efficient vehicles—the way in which that fits in with more efficient engines. Fourthly, it is about broader emissions and the contribution of that to Australia’s overall emissions profile.

At that time, we introduced a bill which became the Fuel Quality Standards Act 2000. In 2005 we completed an independent inquiry. That inquiry made a series of recommendations. This bill, at this time, implements the coalition’s recommendations in relation to what was originally the coalition’s bill. It was a bill about Australia’s energy independence, Australia’s automotive and transport security and, in particular, the quality of our air and environment. Against that background we are very happy to see the recommendations which were tendered during the latter period of our time in government being brought forward and we are happy to offer our support.

Essentially the background is this. The Fuel Quality Standards Amendment Bill standardises the quality and improvements of fuel being distributed in Australia in order to regulate fuel quality for environmental improvement, adoption of better engine and emission control technologies and more effective engine operation. In particular, though, the bill also puts in place a furtherance of those measures which were established in 2000 to allow for emergency fuel supplies to be expedited where there is a blockage of flow or a breakdown in Australia’s fuel and energy security. That is a good thing. We proposed it and we endorse it. We wish it had come in somewhat earlier in the life of the government but we will not be critical of that.

Our record is exceptionally strong in this space. The Fuel Quality Standards Act 2000 was introduced by the previous government and passed by the previous government. It was a quite profound change in the approvals process for developing national standards, improving our energy efficiency, improving the particular quality of our fuels and improving the way in which they operated, and therefore it had a real impact on the quality of life of those people, our energy efficiency and our independence as a country. That is a pretty good background. Against that, today fuel quality standards are determined under the act, with reference to the Fuel Standard (Petrol) Determination 2001, the Fuel Standard (Automotive Diesel) Determination 2001, the Fuel Standard (Biodiesel) Determination 2003 and the Fuel Standard (Autogas) Determination 2003. All of these set down a mixture of both standards and labelling so that there is clear, evident and obvious consumer choice. Those things are positive elements in the step forward to provide consumers with as broad a range of fuel options as possible and as safe and environmentally sound fuel options as possible.

Whilst the coalition supports the amendments contained within the bill—which are amendments to an act which was originally proposed, propounded and developed by us—we note that the emergency provisions are desirable, if not somewhat overdue. A year and a half into the life of the new government, we see what was ready to be implemented immediately prior to the election finally being brought forward. Having said that, for all the above reasons we support the bill. However, I note that this bill comes at a time of a broader debate. The political debate is also about consumers, fuel and pricing. We saw last night in the budget papers a confirmation that consumers would be hit with a new tax on petrol under the government’s proposed emissions trading scheme. That new tax will reach into the pocket of every consumer in Australia and will be a new petrol tax.

It is very interesting to put this proposition to members of the government because there is a certain denial. What they do is say that it will be reviewed. But the budget papers are predicting the adoption of a fuel tax, an additional, new, over-and-above-that-which-is-in-place fuel tax after the new scheme has begun. That is something which has been kept largely from the knowledge of the Australian public. It is another little sleight of hand—there will be a new petrol tax but not until after the next election. That is a very important thing to understand. Whilst we endorse the measures in this bill and think that they take forward that which we supported in government and that which is desirable for air quality, for energy efficiency and for fuel security in Australia, we note that there is a deep concern about a new petrol tax which will come, but only after the next election. With that reservation I wholeheartedly support the bill.

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