Bob Katter (Kennedy, Independent) Share this | Link to this | Hansard source

My question is addressed to the Minister for Resources and Energy. The minister would be aware that oil majors do not buy petrol at the spot market quoted world price. They own the oilwells or have long-term contractual prices. Is the minister aware that the price for oil three years ago was $42 a barrel while the bowser price was 101c and, since no oil companies were going broke, the cost of production, distribution and retailing was below 100c? Since then, as the cost of production, distribution and retailing has not changed, the oil companies should now, at 150c, be making a 50c a litre greater profit than then. Since government in Australia does not approve of price fixing, could the minister assure the House that he will keep an open mind and consider proposals being formulated for government—by the carbon and energy council—to provide ethanol to all Australian motorists at United States bowser prices of 80c a litre and Brazilian bowser prices of 74c a litre? I ask leave to table a photograph of a very handsome fellow in a big hat, filling up his Brazilian Holden motorcar at 74c a litre.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member, having asked his question, will resume his seat. Is leave grant for the tabling of the document?

Leave granted.

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

I thank the honourable member for Kennedy for his question but, unfortunately, I am not given the leniency that he is given, in terms of time, to answer that very detailed and lengthy question. Having said that, I say that, like the member for Kennedy, the government is seriously concerned about alternative fuels, and ethanol is one option. But our responsibility is to put in place an alternative fuel strategy that is not only environmentally smart but also economically smart. I say that because we, as a nation, are potentially on the verge of having serious problems in terms of the import of oil and refined products. By way of example, in 2006-07, Australia’s annual oil and refined products net deficit was $4.8 billion. Unfortunately, this deficit is potentially set to grow to $28 billion by 2017.

For that very reason, in addition to ethanol, the government is trying to explore a range of alternative fuels in association with also giving proper consideration to vehicle technologies as the potential means of reducing Australia’s oil reliance and, in doing so, also paying proper attention to the issue of reducing greenhouse emissions in Australia. In that context, I thank the honourable member for the question. We will give serious thought to his ideas, because we always welcome practical ideas from the member for Kennedy.