Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What impact is the conflict in the Middle East having on the global economy, and how is Australia placed to deal with these challenges?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I really appreciate the member for McEwen's question but also his focus on the impacts in real communities like his of what we're seeing around the world right now. The escalation of the conflict in the Middle East has been dramatic and so has its impact on the global economy. We are seeing a great deal of volatility play out on markets for equities, commodities, currencies and bonds and also in risk indexes. Markets were especially pessimistic over the last couple of days, but they've rebounded substantially so far today in reaction to some comments from President Trump.

The most significant impacts have been on energy prices, including oil. Oil was trading just under $90 before question time, but it got up to almost $120 a barrel yesterday. It was about $60 at the start of the year and $73 at the start of this conflict, to give people a sense of the scale of the increase. This sort of volatility, especially in energy markets, puts upward pressure on global inflation at the same time as the conflict weighs on global growth. The longer this drags out, the more serious the economic consequences.

We did have an inflation challenge before these developments of risk, making it worse. We will update our inflation forecasts in the budget in the usual way. But we also need to remember that we have very substantial advantages and very solid economic foundations in this country. We are not immune to what's happening around the world, and we are not complacent, but we are very well placed as a country and as an economy, and that's my main message today.

Last week's national accounts showed we had stronger economic growth than any major advanced economy. We've got low unemployment. We've got higher participation. We've got stronger jobs growth and lower debt as a proportion of our economy than the major advanced economies as well. We have one of the most robust and best regulated financial systems in the world, and the Council of Financial Regulators has been meeting daily to stay across developments on markets. We have large stockpiles of fuel, and the ministers are engaging with primary industries to stay across the pressures in those industries as well. We've empowered the ACCC to police the service stations and issue on-the-spot fines if necessary, and we've increased the maximum penalties five times to $50 million. We're prepared to take other responsible steps if necessary.

We do have a lot going for us but a lot coming at us as well. We will continue to work through these developments to make sure that our people and our economy are as resilient as possible in the face of all of this global economic volatility and uncertainty.

Mary Aldred (Monash, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy. Last week, the minister stated that he has 'great confidence' that energy companies will not be taking advantage of Australia's fuel crisis. Today, it's reported that fuel prices are up 40c a litre. Can the minister advise the House where there are fuel supply shortages in Australia and what he is doing to fix them?

Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I think I've outlined to the House that there are diesel shortages being faced in rural and regional Australia, in particular, in the face of massive spikes in demand. Now, that desire by people to get diesel is understandable, particularly when there's some misinformation out there about Australia's fuel supply, but it is very important that we all communicate that the biggest risk to fuel availability in Australia right now is panic buying. That is the biggest risk. That is why, when we see increases in demand for fuel in the Adelaide Hills and Barossa of 238 per cent, service stations and providers are going to find difficulty in meeting that demand—100 per cent. In Mildura, for example, of course that's the case. It's also the case—we need to be very honest with people—that stockpiling fuel on a property is not an undertaking without risk, and it's also very important that we send that message as well. Those opposite ask what we are doing about it. What we are doing about it is working with the industry. By 'industry', I mean industries across the board, with the refiners—the two that we have left in Australia, not the six that the previous government inherited. We had the member for Hume denying that foreclosed while he was the energy minister, but the facts speak for themselves.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The Leader of the Opposition will withdraw that comment.

Angus Taylor (Hume, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

I withdraw.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

If the Leader of the Opposition wants to talk, he is more than welcome.

Milton Dick (Speaker) Share this | Link to this | Hansard source

You're now pushing the friendship. What is your point of order?

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Energy and Emissions Reduction) Share this | Link to this | Hansard source

It goes to relevance. It was a very direct question: Where are the fuel supply shortages? And what are you doing to fix them?

Milton Dick (Speaker) Share this | Link to this | Hansard source

And the minister is answering directly those two questions in his answer. He identified the areas of Australia that have fuel shortages and he's explaining to the House exactly what he is doing. Cease the frivolous points of order. He's updating the House exactly about what he is doing. His words are 'This is what the actions are'. This is now getting beyond. The manager, I'll reiterate: if this continues any more today, no more points of order will be taken. And I've got examples of where that has happened time and time again.

Chris Bowen (McMahon, Australian Labor Party, Minister for Climate Change and Energy) Share this | Link to this | Hansard source

Thank you, Mr Speaker. Again, as I indicated, ministers convened important peak groups earlier today and asked them what actions would be helpful for the government to take. The National Farmers' Federation and the other groups said the most important single government action you can provide is reassurance that Australia's fuel supplies are secure. That is the most important action we can take. That's what the NFF—if you care about what they think—and the other groups said to us, so we will continue to do that. We'll continue to work with industry.

If honourable members have particular issues that they wish to raise with me and companies whose concerns they want to bring to my attention, as some honourable members know, my door is open to them. I will take their concerns and I will see what can be done in cooperation with the industry, because that is a sensible approach. There have been several members opposite who have been through my doors, and they're always welcome if they want to raise issues in good faith.