David Pocock (ACT, Independent) Share this | Hansard source

I rise to speak in support of the Export Finance and Insurance Corporation Amendment (Strategic Reserve) Bill 2026. When supply chains are disrupted and prices spike, Australians expect their government to act—to step in where markets fall short and to protect the national interest. That's why this bill has my support, and I commend the government on bringing it forward so quickly. In times of heightened geopolitical uncertainty, there is a clear and legitimate role for government to stabilise outcomes and maintain supply of the things that we need.

But support for action is not the same as support for unchecked power. While I support the bill, like Senator Tyrrell I have concerns about the breadth of the powers it creates and the need for greater transparency in how these powers are used. When parliament extends broad authority to the executive, and when public money is used to underwrite private risk, Australians deserve to know how decisions are being made and how their interests are being protected.

This bill significantly expands the role of Export Finance Australia. As a result, EFA will be able to support the supply of fuel in addition to critical minerals and other strategic materials. I understand the rationale. In a crisis, importers may hesitate to purchase supply at elevated prices, fearing losses if conditions change. That hesitation can worsen shortages, and government stepping in to reduce that risk is a reasonable response. Fuel security matters, and, when supply is disrupted, the impacts flow through the entire economy, from transport costs to grocery prices, so there is no question that government has a responsibility to act.

But we must legislate carefully in this place, particularly when it comes to handing the executive even more power, and this bill raises three concerns. The first concern is about scope. This bill is not narrowly confined to an immediate crisis; it creates broad, ongoing powers with significant discretion and a wide definition of what constitutes a strategic material. Flexibility may be necessary, but, without clear guardrails, it risks becoming overreach. Australians should know when and why these powers are used and what limits apply.

My second concern is about transparency. If taxpayers are underwriting downside risk, there must be clarity about the terms of that support. Australians should not be asked to carry private risk without confidence that the public interest is being protected. If public money is exposed to losses, there should also be a mechanism to share in any upside.

My third concern is about the open ended provisions of these powers. There are significant changes to the role of government and to EFA's mandate. These warrant close scrutiny and timely reassessment. I welcome the fact that a review is written into the legislation; however, the first review should be brought forward from late 2029 to the end of 2027. For these reasons, I will support amendments to the bill that are proposed by the Greens.

This bill is, rightly, a short-term measure, but there is a broader issue that we must address. We are hopelessly exposed to fuel shocks. We are vulnerable to global disruptions, as was exposed after the 2022 invasion of Ukraine and, now, by this conflict in the Middle East. True resilience means reducing our exposure to these shocks by improving our energy security and our energy sovereignty. Electrification and the development of renewable energy have to be priorities, to reduce our reliance on imported, expensive, volatile liquid fuels.

While I support this bill, I would like to see more done to address the underlying issue, and that must be a project for many years to come. I urge the government to turn this massive challenge we face into an opportunity to turbocharge the work of electrification and ensure that Australians are not left behind in the transition. Australians want a government that can act decisively but also one that explains itself, accepts scrutiny and takes measures to address the underlying problem.