Varun Ghosh (WA, Australian Labor Party) Share this | Hansard source

I rise to oppose the urgency motion of Senator Pocock. I want to do so by contrasting the simplistic and blunt nature of the motion with the measured, responsible and substantive approach that the government is adopting and to reflect on the importance of getting the nuance and detail of gas policy right. Gas already plays and will continue to play an important role in Australia's energy transition. That is made clear by the Future gas strategy, which examined the role of gas in Australia and among our chief trading partners. That strategy states that gas will be crucial to creating a smooth transition to renewable energy and to net zero. That includes placing downward pressure on prices and providing security to our grid as our reliance on coal winds down and our uptake of renewable energy sources increases. That's an uptake of renewable energy sources that has been driven and presided over by the Albanese government.

Unlike coal or nuclear, gas is a flexible form of power, and that's what makes it so essential in this transition. It can be turned on and turned off quickly and suits the needs of a modern energy grid like the one being built by this government. Gas doesn't just play an important role in our homes; it's crucial to supporting the industries that are important to our economy. The Australian Energy Market Operator says that 42 per cent of the energy used by Australian manufacturers is gas. AEMO has also highlighted the need for new investment in gas as we push towards net zero and rely on gas as a firming power source to a greater degree. It doesn't just assure that Australians are able to keep the lights on, which is vital, but gas exports also ensure that other nations around the world can also access the same reliable power source as they seek to transition as well.

Let me come to the terms of this motion itself. I think it goes to the difficulty of our problem now. We really do need to ensure that there is a balance between how gas is used for export and how gas is used at home. We need this to be available to Australian consumers, and I think I can agree with the final clause in this motion, which is that we need to bring down the price of gas and electricity for Australian industry and households. That is perhaps one point of agreement, but that's where our agreement ends with the motion. There are a number of reasons for that, but it's reflected in the terms of the motion itself. Australian gas benefits Australian households and businesses, but it benefits them in two ways. It benefits them through use, and it benefits them through exports, and investment in this industry that's necessary to ensure supply relies on both elements. Supply for the future relies on both elements.

This motion says the government should legislate to redirect uncontracted export gas into the domestic market, and that's a fairly blunt tool, but it's also a tool that's absent of any detail at this point in time. 'The government should legislate this.' The difficulty is: what volume is being directed? Is it all of it? Is it some of it? It's all of it, says Senator Pocock. All of it is redirected into the Australian market. The second difficulty is setting the price. Where's the price set at? Is it set by the market in Australia? Are we playing a global supplier price, or are we setting a price ceiling or floor? Are we doing that through limiting access to global markets overall?