Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Minister, as the conflict involving Iran drives oil prices higher amid an effective blockade of the Strait of Hormuz, Australians are already paying more at the bowser and in the supermarket. Official analysis released under the Albanese government has highlighted that Australia's fuel reserves are dangerously low by international standards, with roughly 26 days of petrol, 25 days of diesel and 20 days of aviation fuel onshore—far short of what a serious crisis would demand. Yet this week the Minister for Climate Change and Energy, Chris Bowen, told Australians, 'We have a good stock of petrol in reserve.' Can the Prime Minister advise who is telling the truth, the government's own fuel security experts or the most incompetent energy minister we have ever had, Minister Bowen?

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

Senator Hanson, that is a personal reflection on a minister. Please withdraw.

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I withdraw.

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

First I'd make the point that, in fact, Australia is now holding more stocks of aviation fuel, petrol and diesel on land and in ports in Australia than at any time in the last 15 years. I know that you have a view that you need to attack the Labor government, but I note you were very quiet about this, if I may say, when the coalition was in government. We actually have—

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

You're wrong; don't mislead this parliament.

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

If I'm wrong, I'm happy to hear you. I'm happy to hear you if I'm wrong on that, but I don't recall this being something that you attacked Mr Taylor about when he was the energy minister. I'd again say Australia is fuel secure. We hold more stocks of aviation fuel, petrol and diesel on land and in ports in Australia than at any time in the last 15 years. Senator Hanson does—

Honourable senators interjecting—

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

Order! The interjections across the chamber are incredibly disorderly. I'm asking you all to stop.

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

The senator does raise an important issue, which is that one of the consequences or risks associated with this is the conflict in the Middle East, which has implications not only because of the transit of oil through the Strait of Hormuz but also because of the impact on economic and financial markets, global markets for fuel, which react not only to that risk but also to the Iranian targeting of hydrocarbon infrastructure in the region. You're right, that is a challenge. The government is very aware of that. We are very aware that these developments have added to the uncertainty in the global economy.

I'd make a few points: we have established an Australian domestic fuel reserve, we are finalising a gas reservation, we are closely monitoring developments in the Middle East, including fuel impacts, and we've secured more affordable gas for Australians.

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

Senator Hanson, first supplementary?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

According to a government liquid fuel security review, diesel is the fuel we have the lowest capacity to produce domestically. Given that your government has left Australia with only 25 days of diesel, how can the Prime Minister keep backing Minister Bowen's claim about good fuel stocks when your own fuel security experts warn that defence, food supply, hospitals and emergency services are at risk if the ships stop coming?

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

Senator Hanson, I'd again say to you that in relation to how much of our stockholding obligations we have compared to the minimum obligations—what we are required to hold and what we hold—the advice to me is that diesel is at 116 per cent of those holding obligations.

We understand the potential risk to the global economy and markets for energy that this conflict is causing, so of course we will continue to take action. This includes the ACCC being asked for assistance in terms of avoiding the price gouging of consumers. We also, as you know, have put in place coal and gas price caps and have established domestic fuel reserves for diesel, petrol and jet fuel in Australia.

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

Senator Hanson, second supplementary?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Under an international arrangement, we're supposed to have 90 days fuel supply. It was your government that changed it, so you've lowered the standard. Minister, will the Prime Minister admit Labor's recklessness net zero energy policy has left Australia incapable of fulfilling its own security needs in the event of a crisis and abandon the destructive ideological obsession with net zero? I must also say that, under Labor, you actually got rid of three fuel refineries.

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

Senator, my recollection is actually that four out of six closed under the coalition. Senator Ayres pointed that out yesterday. But, do you see, this is the problem, Senator. The advice to me is, as I've said, that we hold more fuel than at any time in the past 15 years.

In your desire to attack the Labor government, you forgive the sins of Mr Taylor but you attack the Labor government. Now, it's fine if you wish to do that, but I think it demonstrates where your political allegiances really lie.

Corinne Mulholland (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Ayres. The conflict in the Middle East has disrupted oil and gas exports. This includes halting traffic through the Strait of Hormuz, which accounts for more than 20 per cent of global oil and gas trade. Minister, to what extent is Australia exposed to international energy market disruption? Can the minister confirm that Australia's fuel supply is secure?

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

Thank you to Senator Mulholland for that question in relation to international oil markets and fuel security. I can say that this government has made sure that Australia is more fuel secure that it has been in a generation. After the previous government and Mr Taylor and Mr Morrison's joint leadership of the energy portfolio in secret utterly failed to manage our obligations to keep Australians fuel secure, we implemented the Minimum Stockholding Obligation, which the previous—

But you never implemented it, Senator Paterson. It was words, but you never implemented it. As a result of that, we have 1.5 billion litres of petrol on hand and three billion litres of diesel in our Minimum Stockholding Obligation—in effect, a strategic reserve. I understand why the coalition is so sensitive about this proposition and why they join with One Nation to go around trying to frighten little old ladies about it. They try and profit from conflict and profit from trying to create a sense of crisis, when they never did anything themselves.

The person most responsible for 'never doing nothing' was Mr Taylor, the member for Hume, who is now their leader. I'm not as posh as you, Senator McGrath; I just say it the way I want to say it: he never did nothing. He put our fuel reserve in Texas. That was his contribution to Australia's fuel security—a made-up fuel reserve. It may be in El Paso—I don't know—but it's somewhere in Texas.

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

Thank you, Senator Ayres. Senator Mulholland, first supplementary?

Corinne Mulholland (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

One of the key drivers of Australian petrol prices is the international oil price. Minister, what is the expected impact on petrol prices of more expensive oil from the current conflict and what is the Albanese Labor government doing to prevent price gouging by petrol retailers?

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

What we did, Senator Canavan, was implement the Minimum Stockholding Obligation. We delivered a national fuel reserve. You never did nothing. All talk, no action—that's the problem. Silent—utterly silent—over the course of the Abbott-Turnbull-Morrison government, when nothing ever happened. We went backwards in fuel security terms under your government, and Mr Taylor was more responsible than any other person for that utter failure of policy action and for leaving Australia weaker, with no reservation strategy, no strategy on gas, no strategy on fuel, no strategy on diesel. Yet there you are, trying to defend the indefensible.

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

Minister Ayres, resume your seat. Senator Cash.

Michaelia Cash (WA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Ayres almost took my point of order for me. Point of order, Madam Chair: as much as I think we're all enjoying Senator Ayres's therapeutic performance, could he please direct his comments through you, the Chair, as opposed to conducting a dialogue?

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

On a similar point, could members on my right also stop interjecting. Minister Ayres, please continue and direct your comments to me.

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

Well, in the seven seconds that remain to me, I certainly will do that. We are very focused—directing the ACCC to focus on price gouging. I'm sure I'll get another chance in a—

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

Thank you, Minister. Senator Mulholland—

Senator Canavan, when you are quite finished—particularly as I have asked you to be quiet. Senator Mulholland, second supplementary?

Corinne Mulholland (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

These are indeed uncertain international times, and many Australians are looking to the government for information. Minister, why is it important for the government to clearly communicate the facts, and what risks does fearmongering pose the Australian community? We heard a little bit before.

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

I thank the senator for her question. Of course, at this time, it underscores why strategy, action and implementation in relation to fuel reserves and minimum stockholdings are absolutely important. You can see what's happening in the international markets, where international leaders are moving to reassure customers, companies and countries about their fuel obligations and what is going on in a very difficult environment, where Iran has attacked, as the Foreign minister indicated earlier, 11 countries in that region, and that does have knock-on effects. It does mean that there is a dividend that we need to concentrate on now. That is delivered by firm action. President Trump, for example, is out there offering assurances in relation to these issues, but what we see is something very different from One Nation, the Liberals and the Nationals. (Time expired)