House debates Questions without Notice
Energy Initiatives
Kym Richardson Kingston, Liberal Party
2:38 pm
My question is addressed to the Minister for Industry, Tourism and Resources. Would the minister update the House on industry’s response to the government’s energy initiatives announced yesterday? Is the minister aware of any threats to low energy prices in Australia?
Jenny Macklin Jagajaga, Australian Labor Party, Deputy Leader of the Opposition
David Hawker Speaker
Order! The Deputy Leader of the Opposition is warned!
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
I thank the member for Kingston not only for his question but also for the hard work he has done in representing the concerns of his constituents, particularly on the issue of fuel prices and what the government should be doing in terms of relieving them. Those on this side of the House believe in responsible economic management so that, when the government need to give support to the community, we are able to. At a time of historically high oil prices globally, the government has acted to help Australian motorists, announcing practical steps for cheaper fuel options and long-term energy security. $1.5 billion of assistance was announced yesterday—
Joel Fitzgibbon Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue
Mr Fitzgibbon interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
I will come to you, Member for Hunter—and amongst those initiatives was $677 million to encourage the uptake of LPG, $17 million to help service station operators upgrade equipment for ethanol blended fuel and $135 million to boost petroleum exploration in Australia. The response from industry and the support for this package is very strong. The NRMA has said it is:
... a seriously good package for families and the local alternative fuels industry.
The Australian Automobile Association says:
The initiatives ... will increase competition ... through making alternatives, such as LPG and ethanol blends, more competitive and attractive to the average consumer.
On that topic, in the three hours that the hotline had operated to noon today, there had been 1,100 calls—
Joel Fitzgibbon Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue
Mr Fitzgibbon interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
Are you listening to this, Joel? There had been 1,100 calls to that hotline centre and 80 per cent of them were about retrofitting LPG to their vehicles.
Joel Fitzgibbon Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue
Mr Fitzgibbon interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
The member for Hunter does not understand a basic principle of commerce: that if you increase demand you increase supply. And that is what will happen with LPG supply—
Lindsay Tanner Melbourne, Australian Labor Party, Shadow Minister for Finance
Mr Tanner interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
Despite the fact that I am not the Reserve Bank governor, I know a lot more about economics than you do. Of course, I am asked about—
Lindsay Tanner Melbourne, Australian Labor Party, Shadow Minister for Finance
Mr Tanner interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
Opposition Member:
Use the banana defence.
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
We know about bananas. I am asked about threats to energy prices in Australia and the threat comes from those who sit opposite and their climate change policy. The Labor Party has a policy to reduce greenhouse gas emissions by 60 per cent by 2050. Recent ABARE analysis said that a 50 per cent reduction would double the price of fuel to Australian motorists—
Kim Beazley Brand, Australian Labor Party, Leader of the Opposition
Mr Beazley interjecting
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
A load of rubbish, he says!
Kelvin Thomson Wills, Australian Labor Party, Shadow Minister for Public Accountability and Human Services
You’ve doubled it in two years!
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
On the Labor Party’s policy, while they sit here—
Kelvin Thomson Wills, Australian Labor Party, Shadow Minister for Public Accountability and Human Services
You’ve doubled it in two years!
Ian Macfarlane Groom, Liberal Party, Minister for Industry, Tourism and Resources
and deride what the government did yesterday—something that was welcomed and supported by industry and has been supported by motorists today—they have in their back pocket a policy which will double the price of petrol to motorists in Australia.