Angus Taylor (Hume, Liberal Party, Minister for Energy and Emissions Reduction) Share this | Hansard source

I rise to close the debate on the Fuel Security Bill 2021 and the Fuel Security (Consequential and Transitional Provisions) Bill 2021, and I thank the many members who have contributed to this debate. These bills are critical to ensuring Australia's long-term fuel security and our national sovereignty. The Morrison government's fuel security package, supported by these bills, will support our economy and keep our critical services running, particularly at critical times. I welcome Labor's support on these bills that will help secure the 1,250 jobs across the Ampol refinery in Brisbane and the Viva refinery in Geelong.

The Fuel Security Bill addresses the need to safeguard our country against disruptions in the market while making sure that Australians have access to the reliable and affordable energy that is essential to keeping our economy moving. While our fuel prices have remained affordable during the COVID-19 pandemic, demand for petrol and jet fuel has declined significantly. This had a major impact on our local refineries and reinforced the importance of being prepared to handle unexpected but significant supply chain disruptions. This is why the government introduced the fuel security package in 2020, which these bills continue to build on. We've committed to investing $200 million to build new diesel storage facilities which are expected to deliver new storage by 2020 and see our diesel stocks increase. We're placing a minimum stockholding obligation on industry, requiring a mandated level of jet fuel, petrol and diesel stocks to be held in Australia. It will provide much-needed certainty to motorists and other major fuel users, including our miners, truckers, families, farmers and tradies, that we have these products on hand to support commercial supply chains during disruptions. The minimum stockholding obligation will not only improve domestic fuel security but also assist Australia to meet the 90-day net oil stockholding required by the International Energy Agency.

Through these bills, the government has negotiated commitments from the Ampol and Viva refineries to lock in operations and protect jobs until at least mid-2027. These commitments will be secured through the government providing $250 million to help upgrade refinery infrastructure to deliver better-quality fuels in 2024. Those fuels of course will also play an important role in providing access to newer vehicles being put on the market and bringing down emissions, as well as in the legislated fuel security services payment. The fuel security services payment will be an adjustable cent-per-litre payment which is dependent on market conditions. The government will only make this payment to refineries during tough times, when they need the support. Payments will not be made when times are good and refineries are making a profit. We'll further protect taxpayers by ensuring this payment is capped at 1.8c per litre and implement a thorough monitoring and compliance framework.

Securing our sovereign refining capability is absolutely essential. Without this, Australia would lose the ability to refine domestic crude oil in an emergency, and our onshore stockholdings would only be suitable for a definite period of time before they ran out. So this bill is critical. Any risk to our ongoing fuel supply and of critical jobs being cut is unacceptable. Without these measures, it is very likely that Australia's remaining refineries would close within the next five years, leaving our country 100 per cent dependent on international supply chains to meet our fuel needs.

Through this package, we're protecting Australian jobs and livelihoods. These bills will protect 1,250 workers directly employed at the refineries and create a further 750 construction jobs through the major infrastructure upgrades. The agreement from Ampol and Viva to continue operating is contingent on these bills being enacted. Similarly, the Fuel Security (Consequential and Transitional Provisions) Bill ensures that the minimum stockholding obligation and the fuel security services payment will operate as intended. The package also provides for the proper monitoring of both measures, reducing the regulatory burden on industry and enhancing the integrity of the system.

Australia's future prosperity is dependent on a strong and stable fuel market. That is what these bills deliver. I thank my colleagues for their consideration and commend these bills to the House.

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