Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Senator Wong, your government is imposing a carbon tax on Australian fuel refineries under its so-called Safeguard Mechanism. That impost amounts to over $1 million for each refinery today. To get to net zero, those refineries are potentially facing a bill of up to $1 billion. Minister, at a time of unprecedented global instability, why is this government making it more expensive and more precarious to refine fuel on Australian soil?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

It does feel somewhat like groundhog day: the National Party in the Senate are again asking inaccurate questions about energy and being very successful in dragging the Liberal Party to the economically irrational Right. If I may congratulate you, you've certainly managed to get the Liberal Party to pick up your irrational policies! I think they are irrational. They are not good for the country, but, as a political strategy, you've certainly managed to get them there.

Unfortunately, it isn't good for the country, and what we know is that, under the uncertainty that your government imposed on the Australian economy as a result primarily of National Party engagement and National Party campaigning, you had so much policy uncertainty that there was an effective investment strike. You had 22 out of 24 coal-fired power stations close—I'll correct that if I'm wrong.

Government Senator:

A government senator interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Twenty-four out of 28 closed.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I have a point of order on relevance. Australians are very concerned about uncertain fuel supplies, and, as much as I'd love to discuss coal-fired power stations, the question was about our fuel security and the government's tax on Australian fuel refineries.

Sue Lines (President) Share this | Link to this | Hansard source

I think the minister is being relevant. I will continue to listen carefully.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Four-out-of-six refineries closed under whom? Under you. Four-out-of-six refineries closed under you, and then 24-out-of-28 coal-fired power stations closed under you. The problem is you have irrational economic policies which do not help Australians. And we see that in the closure of the things that you care about—on this front, refineries closed under you, just as coal fire closed under you because there was a lack of investment.

Minister Ayres made clear yesterday that we hold more fuel now than at any time in the last 15 years. (Time expired)

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Senators McDonald, McKenzie and Ayres, when you've quite finished—Senator Canavan.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, the Safeguard Mechanism is not free. Its costs are passed through to transport, to logistics, to groceries—to every good that is moved across Australian roads. Your own government's review found that petroleum carries the second-highest risk of investment leakage under your Safeguard Mechanism policy. So the choice your government has made is this: to tax Australian refineries, drive investment offshore and import more fuel from overseas. Can you name a single Australian who's better off because of your carbon tax?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator, I'd remind you that Kwinana closed in March 2021, Kurnell in October 2014—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

I've a point of order on direct relevance. The minister seeks to continually talk about—

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

previous governments' policies instead of answering—

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKenzie, I'm not going to keep calling you. Resume your seat. Resume your seat! Senator McKenzie, I had to ask you three times to resume your seat. The minister had barely spoken four words by the time you stood to call a point of order. There is no point of order. I'm going to request that you listen in silence or leave the chamber.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I'm asked about fuel. I remind you that the federal energy minister on 11 February 2021 said the Altona closure 'will not negatively impact Australian fuel stockholdings'. Who was that? Was it Mr Taylor? It was Mr Taylor! So I do want to remind you, Senator, that you come in here now complaining about fuel refineries when four out of six closed under you. The issue is that four out of six closed under you. You know that, you know what has happened and you also know that this government and this energy minister have ensured that we have more fuel now than we have had in 15 years.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Canavan, second supplementary?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I note the minister made no attempt to defend their government's own policy. Minister, a permanent exemption for fuel refining from the safeguard mechanism would protect Australian jobs, protect our fuel security, guarantee investment to protect Australian jobs and put downward pressure on fuel prices. Why won't the government do it?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator, I think you should be upfront—and you generally are. Your position is not a single exemption. Your position is you don't want any action on climate.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

It is actually the position of the whole coalition.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Oh, yes, that's true—congratulations! And how do you feel, Senator Sharma, sitting next to him? You used to argue for action on climate change, and now what we see is the National Party leading the coalition on energy policy. They wonder why Australians throughout our cities and our suburbs look at you and go 'no way'. It would be good if, at some point, people in the Liberal Party who used to believe in markets and sensible economic policy might stop listening to Senator Matt Canavan.

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Why don't you get a mirror, you goose!

Sue Lines (President) Share this | Link to this | Hansard source

Senator Ayres, withdraw that comment.

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

I withdraw.