House debates

Thursday, 20 March 2008

Australian Energy Market Amendment (Minor Amendments) Bill 2008

Second Reading

10:24 am

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

I move:

That this bill be now read a second time.

Under the oversight of the Ministerial Council on Energy, Australia has made substantial progress towards an efficient and effective national energy market over recent years. The government looks forward to strengthening the energy reform program under the ministerial council and delivering the productivity gains available from reform to the Australian economy.

The bill I am introducing today will make minor amendments to Commonwealth legislation that underpins the national regime for the regulation of gas pipeline infrastructure. The efficient regulation of gas infrastructure is a critical step in the transition to a low-carbon economy.

MCE’s cooperative legislative regime will apply the National Gas Law and National Gas Rules in all participating jurisdictions to create a harmonised national gas access regime.

This cooperative regime involves the enactment of lead legislation in the South Australian parliament, and the enactment of ‘application legislation’ in all other participating jurisdictions (with the exception of Western Australia). Western Australia will pass complementary legislation to give effect to the National Gas Law, rather than applying the National Gas Law established by South Australian law as in force from time to time. The legislation will replace the current cooperative Gas Pipelines Access Law and provide crucial incentives for investment in gas pipelines.

The South Australian parliament will be asked to enact the lead legislation for the regime, the National Gas (South Australia) Act 2008, in the first half of this year. The National Gas Law will be the schedule to that act.

The Commonwealth has already enacted its application legislation in the form of the Australian Energy Market Act 2004. This act was amended in 2007 to apply the National Gas Law in the Commonwealth’s offshore jurisdiction. However, the South Australian lead legislation implementing the National Gas Law and Western Australian complementary legislation will be passed in 2008 rather than 2007. This delay has allowed the inclusion of a gas market bulletin board in the regime to increase transparency in our gas markets.

Similarly, the Commonwealth amended the Trade Practices Act 1974 in 2007 to empower several Commonwealth bodies (the Australian Energy Regulator, the National Competition Council and the Australian Competition Tribunal) to perform key functions under the gas access regime and the Administrative Decisions (Judicial Review) Act 1977 to ensure the decisions of Commonwealth bodies under the regime are reviewable under that act. The references in those acts also need to be amended.

Therefore, this bill makes minor amendments to the Australian Energy Market Act 2004, the Administrative Decisions (Judicial Review) Act 1977 and the Trade Practices Act 1974 to correct references to the South Australian lead legislation and to Western Australia’s complementary legislation. These amendments are required to ensure that the Commonwealth’s application legislation correctly applies South Australian and Western Australian legislation in the offshore area, and correctly empowers the Commonwealth bodies under the regime.

In summary, the amendments I am introducing today are minor technical amendments to further the smooth implementation of the cooperative energy reform agenda. This bill has the full support of my state and territory colleagues on the Ministerial Council on Energy.

I commend this bill to the House.

Debate (on motion by Mr Randall) adjourned.