House debates

Thursday, 17 June 2010

Questions without Notice

Resources

2:44 pm

Photo of Mike SymonMike Symon (Deakin, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Resources and Energy and Minister for Tourism. Will the minister inform the House of the outlook for investment in the resources sector?

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

I thank the member for Deakin for the question and in doing so remind the House that, yes, from Australia’s point of view the outlook for Australia’s resources sector has never been brighter.

Opposition Members:

Opposition members interjecting

Photo of Wayne SwanWayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | | Hansard source

They just keep talking the country down.

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

Yes, Mr Speaker, all they can ever do is talk Australia down.

Opposition Members:

Opposition members interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! Those on my left will come to order. The minister will ignore the interjections.

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

We as a nation have always been rich in natural assets. The real issue is our capacity to develop those natural assets by putting the necessary reforms in place. In that context I remind the House that demand for Australia’s LNG is set to grow. One of the reasons is the tough debate this government took on 25 years ago about the introduction of a petroleum resource rent tax, which saw the biggest ever investment in Australia’s history—the Gorgon project of $43 billion—last year. Similarly, demand for our minerals continues to grow because of the growth in China—and we all have regard for the Indian market that is yet to come on. One of the reasons we are well placed is the key reforms that Labor in government took on in the eighties and the nineties. It was those reforms that well positioned Australia for the challenge that confronts us in the 21st century.

Labor has always been up to standing up for reform in Australia. We have lost market share in the last decade because of the failure of the Howard government year in and year out to invest in infrastructure and to invest in the skilling of Australia. Just think about the reforms that set up Australia under the Hawke and Keating governments, reforms quite often opposed by the coalition because they are never interested in Australia’s national interests—they continually talk Australia down domestically and internationally. Let us go to some of those reforms: the floating of the dollar; embracing free trade and open markets globally; our engagement with Asia, which has given us the market opportunities in China and India; the issue of introducing productivity bargaining—something I know a little bit about—and the capacity to negotiate—

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Speaker, I rise on a point of order. The member for Deakin asked the minister about the outlook of the resources industry in the future. He did not ask about a rewriting of the history of the last 30 years.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The member for Sturt will resume his seat. The minister is responding to the question.

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

Yes, Labor in government is proud of its reforming record. I understand why the coalition wants to run away from this debate, because it was never up to the tough debates about reforming Australia. I also remind the House of the importance of the savings and retirement income debate and introducing the superannuation guarantee.

It is for those reasons that we have decided to take on another tough process of reform—the issue of Australia fronting up to the debate about a resource super profit tax, a profits based tax system, something that the minerals sector demanded that Australia put in place, something that was on the table for consideration under the Howard government, something that the Howard government ran away from and something that we are prepared to actually take forward to conclusion.

This debate is about certainty. It is about fairly rewarding risk and it is about providing the Australian community with a fair return for the nation’s resources. Think about the broader aspects of this debate. Yes, it is about a new approach to a profits based tax system in Australia, but it is also about infrastructure. The Minister for Infrastructure, Transport, Regional Development and Local Government referred earlier today to demands by the Minerals Council of Australia for us as a nation to invest in infrastructure. Infrastructure, to the coalition, was not about fixing the Australian national railway system; it was not about investing moneys in Port Hedland roads; it was not about fixing Esperance port; it was about projects such as Tumbi Creek. We can all remember the ‘Regional Rorts’ program and the coalition’s approach to infrastructure. There we had a creek that drained itself, but what did the coalition do? It decided to allocate scarce Australian dollars to put in place a so-called draining opportunity.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Speaker, I rise on a point of order. The minister was asked about the outlook for the resources industry. He is now talking about—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The member will resume his seat. I have got the point of order.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Pyne interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The member will resume his seat! I have got the point of order but, if he wants to argue me out of agreeing with any part of his point of order, I am quite happy.

Photo of Don RandallDon Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Roads and Transport) Share this | | Hansard source

Mr Randall interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The member for Canning can leave the chamber for one hour under 94(a).

The member for Canning then left the chamber.

The minister will not stray as far as he has been and he will consider at this stage concluding his answer quickly.

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

Yes, Mr Speaker. I am talking about infrastructure and skilling and the associated processes of government. The coalition has referred to a few media articles in question time today. I have also come across an interesting media article, in the Australian of yesterday. It is about the member for Curtin, the Acting Leader of the Opposition. I think this really goes to the national interest debate at the moment.

Photo of Joe HockeyJoe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | | Hansard source

Mr Speaker, I rise on a point of order.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The member for North Sydney will resume his seat. The minister will relate his material to the question.

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

Mr Speaker, it goes to the serious question of consultation with industry.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The minister will have to try harder.

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

I will show you, Mr Speaker. It refers directly to consultation with industry—yes, the member for Curtin’s consultation. It says:

Forget the publicity shots next to Twiggy Forrest—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister must relate the material to the question, which was about the outlook of the resources sector. It was actually a very short question.

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

That is why the article goes on to talk about backroom discussions and consultations.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister will resume his seat.