Nick Xenophon (SA, Nick Xenophon Team) Share this | Hansard source

I support this bill, the Liquid Fuel Emergency Amendment Bill, with reservations. The reservations are that I don't believe it goes far enough—quite a contrary position to that of Senator Leyonhjelm. I support this bill because the issue of fuel security is of fundamental importance not just in strategic terms but also to our economy. We live in an increasingly fragile geopolitical situation. We hear the news almost on a daily basis about North Korea and their mad plans in terms of intercontinental ballistic missiles and their nuclear weapons capability. If Australia were involved in a conflict, our fragility in fuel supplies could mean that, in a matter of days, we would run out of fuel, in the absence of reserves.

Mr Acting Deputy President Sterle, given your experience and history in the transport sector, what would that do? It would mean that the whole country would grind to a halt. The economic impact would be devastating. Trucks wouldn't be on the roads. Motor vehicles wouldn't be going anywhere. Basic logistical supplies such as food and the necessities of life wouldn't be able to be transported from point A to point B. It would be simply catastrophic to our economy and leave long-lasting scars. When you compare what Australia does at the moment, which is not very much, to, say, the United States—I understand that their strategic supply reserves are in the order of 12 months; I stand to be corrected on that—it indicates we have not taken this issue seriously.

Several years ago, former senator John Madigan, to his absolute credit, referred the issue of Australia's transport energy resilience and sustainability to the Rural and Regional Affairs and Transport References Committee, which you chaired, Mr Acting Deputy President Sterle. It was a very useful inquiry. I participated in some of that inquiry, and it was a very good inquiry. The evidence given to that inquiry was quite striking. It was about how limited our fuel supplies are, particularly for some types of fuel. We are looking at maybe two, three or four weeks of fuel in the event of a conflict breaking out. If the Strait of Hormuz, the South China Sea or, dare I say, the Strait of Malacca were affected, that would be very, very significant.

These are important issues. The evidence given to the inquiry indicated that there were very, very serious issues in terms of fuel supply. The recommendations made by the committee were:

… that the Australian Government require all fuel supply companies to report their fuel stocks to the Department of Industry and Science on a monthly basis.

The committee recommends that the Australian Government develop and publish a comprehensive Transport Energy Plan directed to achieving a secure, affordable and sustainable transport energy supply. The plan should be developed following a public consultation process. Where appropriate, the plan should set targets for the secure supply of Australia's transport energy.

The other recommendation was:

… that the Australian Government undertake a comprehensive whole-of-government risk assessment of Australia's fuel supply, availability and vulnerability. The assessment should consider the vulnerabilities in Australia's fuel supply to possible disruptions resulting from military actions, acts of terrorism, natural disasters, industrial accidents and financial and other structural dislocation. Any other external or domestic circumstance that could interfere with Australia's fuel supply should also be considered.

These are matters that I will raise with the government in the context of whether these other recommendations have been dealt with.

This is a serious issue. I'm not sure how effective the ticket system will be. It's at least a step in the right direction to ensure fuel security. My concern is that, given the geopolitical situation in the region, if a conflict breaks out—I hope it doesn't happen—then we will be incredibly vulnerable in terms of fuel supplies. That, to me, indicates that this bill is a step in the right direction, but I fear it may not go far enough.