Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Hansard source

The conflict in Iran could impact Australians in a matter of days. That's because 27 per cent of the world's oil comes from that region in the Middle East. About 20 per cent of the world's total oil supply passes through the Strait of Hormuz. No one country controls this bit of water, but Iran can block it up, and ships are already getting Iranian radio transmissions saying that the strait is closed. A hike in the fuel prices doesn't just impact personal car users; it will drive up food costs and will massively disrupt our supply chains. Refined fuels—petrol, aviation fuel and diesel—are the backbone of our economy, and 80 per cent of liquid fuel is imported from overseas. Twenty years ago, Australia had eight oil refineries, which met most of our demand for fuel. But, one by one, they were seen by governments from both the major parties as economically unviable. So now we only have two oil refineries. How's that? There's one in Brisbane and one in Geelong.

Last year, the Chief of Navy, Vice Admiral Mark Hammond, warned the country was vulnerable in the event sea lanes were disrupted. Here we go. The International Energy Agency guidelines say that Australia is supposed to hold 90 days of fuel imports in reserve. Well, I'll tell you what: that's rubbish. It doesn't, and we haven't done so since 2011. If oil shipments stop completely, Australia would be likely to run out of fuel in about three weeks. That's on a good day. It's worse in Tassie: we have about three days down there, you guys. Australia's last two refineries are surviving because they are getting government support. The government is currently in talks to extend this, but let's face it: it has been a problem for a long time, and bailouts are no longer an option.

The government needs to be thinking long term about our fuel security. I was part of a Senate inquiry looking at Australia's transport energy resilience and sustainability in 2015. That was over 10 years ago, and we've made absolutely no progress. As a matter of fact, you've gone backwards. We're now down to the last two refineries on shore. What we need is a national plan and possibly a national oil and gas company. The government should consider nationalising these refineries as part of our National Defence Strategy. You have no choice left.