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

Mr Whan. I place those facts on the record in response to the constructive manner in which the member for Paterson raised these issues this evening. He clearly indicated he was not about demonising the industry because of its importance from an energy security point of view. I simply remind the House that in terms of exploration and development in Australia we have a very strong regulatory environment which is strengthened by the bills before the House this evening.

The member for Groom also raised the question of carbon capture and storage and its viability. I remind him, as he is actually a significant supporter of the Gorgon LNG project in Australia at the moment, that not only is it the biggest investment in a single project Australia has ever been the beneficiary of but it is also potentially the largest commercial deployment of carbon capture and storage in the world. Clearly in the foreseeable future there will be a change in the energy mix in Australia. I personally expect that we will see a growth in gas and in wind power. I also appreciate that, whether or not the Greens or some environmental NGOs like it, coal is also going to be a significant contributor to energy security in Australia. For those reasons, it is our responsibility to invest in research and development related to the potential commercial deployment of carbon capture and storage, not only with respect to the operation and development of the LNG industry in Australia but also with respect to the operation of coal fired power stations in Australia.

Our responsibility as a nation is not to seek to select the best energy mix but to invest in appropriate research and development activities which enable the market to determine through the appropriate energy mix over time. It is in that context, I remind the House, that we as a government are therefore committed to resolving a price on carbon. Without a price on carbon, there is a lack of certainty for the purposes of investment in capital intensive assets such as those required in the electricity sector. If anyone has any doubts about that, they should speak to the electricity operators in Australia at the moment, because they argue very strongly that without a price on carbon we will be unable to make the necessary investment decisions going to the energy security of Australia in the foreseeable future. New South Wales is a prime example of that, because the last major investments in energy in terms of coal fired power actually occurred under the Wran government. As a result of Neville Wran’s leadership, we have had the benefits of that investment for many decades. The problem now is that, because of the desire for Australia to have a reliable energy system, the gap between baseload and peak energy Australia has been significantly reduced, and over the next three to five years we need to make some very fundamental investment decisions with respect to the electricity sector in Australia.

With those comments, I commend the bills to the House and express my appreciation of the constructive manner in which the members for Groom, Paterson, Capricornia, Corangamite and Lyons approached this debate, because the petroleum sector is fundamental to our economic future in terms of investment, training and job opportunities in Australia in the 21st century.

Question agreed to.

Bill read a second time.

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