Ross Cadell (NSW, National Party, Shadow Minister for Water) Share this | Link to this | Hansard source

I move:

That the Senate take note of all answers to coalition questions.

Today, we spoke about a number of things. Obviously, front of mind is fuel. I note the change in tone, over the last week, of the government on fuel. It started out with 'nothing to see here; we are all raising the roof'. 'Hair burners' was used today, I believe. Out there, farmers who are raising concerns are 'hair burners'. We're talking about the cost of it. We're talking about the access to it. 'There's no supply issue'—if there's no supply issue, why are we seeing prices we are in regional Australia? Why are we hearing about service stations that will not be able to deliver fuel in hours, days, weeks or whatever it will be? Why are we seeing Xavier Martin, the NSW Farmers president, standing beside a sign in the New England region where $3.59 is the price for diesel?

A supply problem isn't a supply problem at the docks. A supply problem isn't a supply problem in the capital cities. You have a supply problem if you can't get the fuel where it's needed. There is no good in having fuel in tanks on the waterfronts if you haven't got fuel in the tanks of the tractors, of the trucks and of all the equipment that drives Australia, makes it great and feeds the people. That's what we're not looking at being sorted. We are looking at a crisis across Australia because this government has said, 'If there's enough fuel in Australia, we don't have a problem,' whether it is able to be accessed and used or not. That's why we have these problems going on and we talk about them. We hear about things from the National Farmers' Federation. I'd like to selectively quote the National Farmers' Federation from what they said at a roundtable. What did the National Farmers' Federation say in its media release? It said:

…reports from its members across Australia show farmers and fishers in regional communities are increasingly struggling to secure fuel, putting food security and animal welfare at risk.

That is what they are saying to the world—not in a private room. They are happy for this to go out under their notice:

NFF President Hamish McIntyre said that increases in demand had put pressure on fuel retailers in regional areas.

"While overall national liquid fuel supplies may remain sound, impacts are being acutely felt in regional communities right now, especially among independent retailers, who rely on the 'spot market' for supplies."

That is the quote. That is what National Farmers say in full—not 'nothing to see here' but 'these are real problems'. That is why we bring them here. To hear representatives of the government standing up and saying that we are stoking fear—I bring up 'hair burners' again. These are real problems. All we are asking for is a way to address these issues, a way to look at things being better.

If you go beyond what's said there, we can go to the New South Wales question, where NSW Farmers have called on Minister for Climate Change and Energy Chris Bowen to 'immediately act and resolve the bush fuel shortage'. It says:

Across the country, many farmers and the bulk fuel suppliers they rely on are running dry, despite claims from the government that there is no supply problem.

NSW Farmers President Xavier Martin said this was an urgent issue that needed to be addressed today.

"What we need the Australian Government to do today is ease the immediate problem of our domestic fuel supply, getting fuel from the terminal to country bulk suppliers, and then on to the farms and towns that depend on it," Mr Martin said.

"There may be fuel coming into Australia, but the government needs to wake up and realise that does not automatically mean it's getting to where it's needed. Fuel sitting in terminals does not fill tanks in rural and regional areas let alone on farms.

That is the reality, and I get phone calls from personal friends that own feedlots and they tell me they only have enough fuel to get the food to those lots for three days—three days if they let them out and if they let them feed on the long paddock and around. Otherwise, they have to either sell or, horribly, get the rifle out and start putting down animals because it is against animal cruelty regulations to allow animals to be there and not eat. That is the reality of what we're talking about.

These are real calls from real people in real situations, not stoking fear but living in their own personal hell. These people who care for their animals, these people who care for their land, cannot see a way out of this. Imagine being that farmer, having a choice of doing whatever you can to find fuel or putting the gun in the back of the truck to go round and put your animals down. That's what we're facing here.

Michelle Ananda-Rajah (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Oh my goodness.

Ross Cadell (NSW, National Party, Shadow Minister for Water) Share this | Link to this | Hansard source

This is what we get—the dismissive nature. They say it's not true. You call Jonno. Through you, Deputy President, I ask the other side to call Jonno and talk to him about that fear. Because they don't believe it, it's not true. This is what we get to. If it's not in the cities, they don't want to know about it. I ask that all we do is find some real things to put in place so that the people in the regions are not suffering from that, they can feed Australia and they can have a healthy, great life.

Michelle Ananda-Rajah (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

There hasn't been a crisis that those opposite haven't been willing to exploit. They do this each and every time. It is part of their brand to basically whip up fear—extremist fearmongering. Here we are in the midst of an international oil shock, worse than we had a few years ago when Russia invaded Ukraine, and those opposite should be uniting. Instead, they are stoking fear, and that is leading to panic buying, which in turn is resulting in localised shortages of fuel. And the communities who are hardest hit are those in the regions, particularly our farmers and our fishers and regional industries and businesses, the very people that those opposite, particularly Senator Cadell from the Nationals, claim to represent but are actually hurting.

Now, we as a government are taking this seriously and we are doing a power of work in the background to ensure that Australia remains fuel secure. And we are fuel secure. There have been no problems with industry fulfilling its contractual obligations. But what we need right now are cool heads. Andrew McKellar from ACCI, the Australian Chamber of Commerce and Industry, said:

I think the message from businesses, obviously there is a concern about the risks, but I think for the moment, cool heads have got to prevail. Certainly there's no cause for panic.

There's no cause for panic. That's from ACCI—a true leader, not like those opposite.

From our perspective, we have no problems with consistency of supply. Australia has fuel onshore, held in Brisbane and Geelong. This is in contrast to the time the coalition were in government, when our fuel reserves were held in Texas and Louisiana. We also have two functioning refineries. Under those opposite, four of those six refineries closed down, but these two refineries are going full bore, and today the Minister for Climate Change and Energy, Chris Bowen, asked one of those refineries to release more fuel into the Australian domestic market—to the tune of around 100 million litres. This fuel will be less refined than usual, but, given the state of the shortages, we feel this is an important step to take. The additional fuel supply will be directed to those parts of Australia that are hurting the most, particularly our regional communities. Some of it will also flow into the spot market to support independent retailers, often in thin markets.

In addition to this, our Foreign minister has spoken with the foreign minister of Saudi Arabia to ensure that we continue to support Saudi Arabia and maintain our fuel supply chains. We have tasked the ACCC with additional powers to ensure that Australian motorists are not price-gouged at the bowser, with stiff penalties—in the order of $100 million—if people misbehave. We have increased our minimum stock obligation, which is basically a backstop, and we've also activated our national coordination mechanism, to ensure that we have all the smart brains in this country around the table to keep our economy going.

We have a power of work going on in the background to diversify our energy grid. Australia is predominantly a fossil fuel nation. Like the rest of the world, we are reliant on fossil fuels to run our economy, but a shift is occurring. Through our Future Made in Australia agenda, we have poured $1.1 billion into stimulating low-carbon fuels. Low-carbon fuels are things like biodiesel and e-fuels, and they'll play a really important role, going into the future, as sustainable aviation fuels. They are derived from products that our farmers grow—sorghum, sugar cane and canola—and waste products, like tallow.

In addition to that, we are electrifying our transport grid. We are seeing the uptake of electric vehicles. In the last week there's been a surge in the number of people searching for electric vehicles, particularly on the second-hand market. That has happened thanks to the incentives we put in place to make these cars more affordable for Australians. (Time expired)

Leah Blyth (SA, Liberal Party, Shadow Assistant Minister for Defence Infrastructure) Share this | Link to this | Hansard source

It's always very interesting during question time to listen to this government talk constantly about the coalition and what has been done in the past but not about what they plan to do in the future. I think it's fair to say that, thanks to this government's indulgence in the path to net zero, we now have fuel supply in this country at risk. We've got farmers going to the bowser to fill up their tractors, and there is no fuel for them there. I question this when I think about us going to war. As we heard from Senator Cadell, we certainly have some questions about the carbon neutral scheme, where we've got agricultural land and farmland being bought up so that people can have carbon credits and then we've got farmers going to the bowser and there being no fuel there for them. I wonder why this government isn't doing more for those in our regions who are responsible for food security. I live in a city, and I know that the food certainly doesn't get to the supermarket magically. There are hardworking men and women in our regions who are ploughing and harvesting those fields and getting that food into the cities for us to eat, but they can't do that unless there is fuel.

For three days now, I've sat here with the government telling us that there is no issue at all with fuel supply in this country—that we have 2.97 billion litres of fuel in Australia. But I think it's fair to say that Australians are asking where that fuel actually is because it certainly isn't at the petrol stations. They had a roundtable that—whoops!—they forgot to ask the fishing industry to attend. We've got fishers, certainly in my home state of South Australia, who aren't able to fill up their boats with diesel to be able to go out fishing, because there is no diesel for them to get hold of, so I certainly wonder where this 2.97 billion litres of fuel that Australia has is.

There clearly is a supply issue. When pushed on this, this government will say, 'Well, there's higher demand. We're blaming the consumer.' This is a government that never takes responsibility for anything. This is a government who will point the finger all day long at anyone but themselves. In this case, they're pointing their finger at the Australian people for going out there and trying to fill up their tractors and trying to fill up their cars. It's their fault that the petrol stations have run out of fuel. It's got nothing to do with them. I would say that it is time for this government to start governing. It is hard to govern. It is very easy to point the finger and blame others. It's very easy to stand there and talk about what the coalition did or didn't do.

They have been in government for four years now. There is a crisis in the Middle East, and that crisis in the Middle East was building over a long period of time. It is up to the government to ensure that we have the ability to be able to defend ourselves, and fuel security is one of those really important things that a government should be ensuring that we have. It turns out this government has dropped the ball on that very fundamental need that we have. We only have 34 to 35 days of fuel, diesel and aviation fuel in Australia. We should have 90. That is the international standard. We have about a third of what is recommended for a nation like Australia in reserve. Our whole nation stops.

This is a government that has set IR rules that make it impossible for industry to be able to thrive in Australia. They have set net zero targets that are strangling farmers. It is strangling any kind of industry and business, and then they wonder why, in a resource-rich country like Australia, where we have all the fuel we could possibly need right on our doorstep, we can't refine the volume that we need to. It's because there are only two refineries here in Australia. I say to this government: it is tough to govern, but you need to do better because our national security depends on it. (Time expired)

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We have, as the government, been outlining all week—particularly today, in answers to questions—what we have been doing in terms of fuel supply and fuel security. Australians know that, when supply chains are under pressure overseas, the effects can eventually be felt here too—at the bowser, in freight costs, on farm, in the cost of running a small business and in the cost of getting goods from one end of the country to the other. The concern people are feeling is understandable. What matters in moments like this is calm, competent management, and that is exactly what the Albanese government has been focused on. This government is doing the work. The government has been working through the implications of this conflict across the board, planning for the impacts and taking practical steps to protect Australians from the worst of this global disruption.

We saw that in the answers the minister gave that stepped through some of the work that's being undertaken by the minister and the government. Relevant ministers, as we've heard, have met with fuel suppliers, fertiliser suppliers and agricultural peak bodies to work through the pressures that are now emerging in the system. There is daily engagement with fuel companies, including smaller suppliers. The National Oil Supplies Emergency Committee has been meeting regularly so that states and territories are prepared to respond if conditions deteriorate. The government is also working closely with the ACCC, both to watch for market misconduct and to help ensure supply is coordinated into the regions. That matters because what we're dealing with is not just a story about global markets; it's about what happens on the ground in Australia when fear overtakes facts.

At present, Australia is not facing a national fuel shortage. What we are seeing in some areas is localised disruptions caused by sudden spikes in demand. Industry has reported that in some places about a month's worth of fuel has been sold in just a couple of days. That is not normal purchasing behaviour, and when that happens the pressure shows up first in the places that can least afford it. It shows up in regional communities. It shows up for farmers trying to keep equipment running. It shows up for freight operators keeping goods moving, and it shows up for people whose work and daily lives depend on reliable access to fuel. That is why the message from government, industry and peak bodies is consistent: buy fuel as you normally would.

The Deputy Premier of the Tasmanian Liberal government put out a media release today entitled 'Tasmania's fuel supplies secure'. I want to take quotes from his media release, and it's very important because what we have here is an opposition who is, I believe, using the situation for political pointscoring. Now we'll hear from the Deputy Premier of the Tasmanian Liberal government, who said: 'The Tasmanian government has convened an industry and business roundtable regarding fuel supply, and, despite the situation in the Middle East, Tasmania's fuel supply is secure. This was reiterated at the roundtable.' Deputy Premier Guy Barnett went on to talk about how the rising cost of fuel impacts on Tasmanian families, businesses and the agricultural sector. He emphasised: 'Tasmania's liquid fuel supply is in a secure state with sufficient supply on island'—this is in Tasmania, my home state—'and more currently on the way. There is no need to stockpile fuel. People should continue to buy fuel in the same way they always have when they need it. We will continue to engage with the federal government. This is a trying time for many, but together we can sensibly work through the challenges in front of us.'

Well, I think he needs to pick up the phone and talk to the Tasmanian federal Liberal senators because their actions so far could be described as anything other than sensible. (Time expired)

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I relish the chance to make a contribution to the motion moved by Senator Cadell on this issue. Senator Brown might be right about the situation in Tasmania. In fact, I'm pleased that supplies are pretty good down there, but that's not the way it is across the country, and that response is not the way this government has treated regional Australians in particular over the last couple of weeks as they have struggled their way through what is very much a regionally focused shortage of supply.

It's been interesting to listen to Labor Party senators, who largely are still talking from the talking points from last week and earlier this week. They're still blaming consumers. It's the consumers' fault for buying fuel; that's why we've got a problem! There's plenty of fuel here, but the only problem is nobody knows where it is; nobody can tell us where that fuel is. In particular, independent supply chains in regional Australia are where most of the problem is manifesting, and it's in some industries. I mentioned the fishing industry earlier in the week, and certain fishing operators have come back from sea, and the only diesel they have got is what's left in their boats. They can't go back out again.

What do we get? We get bluster, we get word salad and we get blamed, but we are reflecting very much the concerns that are being put to us by our constituents around the country—concerns about supply and concerns about price. The attitude of the government in blaming the consumers of fuel is outrageous. It just shows the lack of respect that they have for regional Australia.

It was shown again with the question asked by Senator Cadell about the amount of land that is being taken up for carbon sequestration. There's an example of that in my home state of Tasmania right now, where this government is subsidising a foreign business to purchase 22,000 hectares of irrigated dairy and cattle country to grow trees. That's what this government's doing. What's happening in that market? They're completely distorting the market, so this foreign tree company can bid $20 million more than the local businesses to buy this farm and put it out of the business of agriculture. No wonder the farming community around the country, including in my home state of Tasmania, isn't confident of what's going on. How is it that a foreign business can outbid local businesses by $20 million—25 per cent of the value of the property—to take it out of agricultural production? This is irrigated dairy and beef country, and they're subsidising a company from overseas to come in and bid against others in the local market, driving the price of the land up and distorting the market, to take it out of agricultural production.

Then we saw yesterday, when Infrastructure Australia released its priority projects, that the third tranche of irrigation schemes in Tasmania has dropped off the priority list. We understand how this government thinks about regional Australia, including regional Tasmania. Irrigation schemes funded by both Labor and Liberal governments over the last 15 years have transformed agriculture in my home state of Tasmania, yet this government, through Infrastructure Australia, takes the next tranche of that irrigation development off the national priority list for infrastructure in Tasmania. It's outrageous that they do that. But then, of course, they're prepared to convert an irrigated dairy and beef farm to trees. This is the absurdity of what's going on in my home state. It's absolutely absurd.

They treat regional Australia with this same disrespect across the board. It doesn't matter whether it's farming, fishing or aquaculture. The ministers say there's plenty of fuel, but they don't say when it's coming. That's all the Australian people in our communities want to understand: when will the fuel be there, and what's the plan to get it there? They are the simple questions that we're asking on behalf of our— (Time expired)

Question agreed to.