Ken O'Dowd (Flynn, National Party) Share this | Hansard source

Firstly, I would like to thank the member for Grey for bringing this motion forward. It is essential that we do address the issue of energy and how we get our energy at the cheapest rate. I would like to thank the member for Hunter. I agree with most things he said. Although, I do disagree with him, I think there is room to build a coal-fired power station in the eastern states: Queensland, New South Wales and Victoria.

As the government, we are focused on delivering affordable, reliable, secure energy for hard-working Australians. Gas will be central to our ongoing economic recovery—and it was seen as well through this COVID-19 pandemic. It has kept our exports and our local gas users supplied with good, cheap, affordable power, which is fuelled by gas in a lot of situations. So gas-fired recovery is a key component to the Australian JobMaker program when we're looking at manufacturing. Manufacturing needs cheap, reliable electricity. Gas can supply most of this. A strong gas company will help re-establish a strong economy. It supports our manufacturing sector, which currently employs 850,000 people. It used to employ a lot more than that. However, because electricity prices have not been able to compete with overseas industries that figure has fallen to 850,000—as it stands now.

It's an essential input for the production of plastics, PPEs and fertiliser. Gas is the main supply of that energy, along with the northern oil, in my electorate, who use natural gas to recycle waste oil. They process up to 300,000 litres every day. Gas is essential for that operation. Increasing gas supplies, to help continue to put downward pressure on our energy prices, is essential. Gas provides flexibility and reliable, affordable energy. It's not about competing with renewables. It works in conjunction with renewables. It complements renewables. Gladstone is currently producing natural gas from its three natural gas facilities on Curtis Island—for domestic markets, but also for exporting. There are three major companies in Gladstone headed by Santos, that's an Australian company; Shell, who we all know has been around for a long time; and ConocoPhillips and their partners. They spent $80 billion building those three gas plants on Curtis Island.

As a government we want to ensure our long-term domestic gas market at a good price, an international competitor price. Under our government gas prices have dropped in the domestic market. Even before COVID-19 there was a reduction in the domestic price of gas across Australia. These prices continue to fall. Lower gas prices are also driving down wholesale electricity prices, so they work hand in hand.

The Australian Competition and Consumer Commission's, ACCC, latest gas inquiry reports have shown that the gas has fallen significantly in 2020, presenting a significant shift in the market pricing. These price reductions are good news for Australian householders, industry and jobs. There are approximately 200 jobs on each Curtis Island plant—600 jobs in total—but they do have shutdown crews who work continuously around the clock to keep those gas plants up to scratch. This will help build our robust and competitive gas industry, allowing gas producers and users to thrive on cheap markets that must be competitive with overseas countries. All lower prices are benefitting all Australians. We will support the infrastructure in the gas fields. That takes us into a moving forward position, which should benefit all Australians.

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