Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry and Innovation, Senator Ayres. Global energy markets and supply chains are disrupted due to the war in the Middle East, and these disruptions include the international market for fertilisers. The Middle Eastern production makes up a large share of the global total, and natural gas from the Middle East is a key feedstock for production elsewhere. In the face of these ongoing disruptions and shocks to global supply chains, the Albanese Labor government remains focused on our national resilience and sovereign capability. Minister, what is the status of Australia's fertiliser market?

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

Thanks, Senator Stewart, for that question. Of course, the conflict in the Middle East is not just an unprecedented shock for global energy markets. There are a series of other commodities that make their way through the Strait of Hormuz or are affected by global energy markets. This is particularly the case for fertiliser-grade urea. Australia relies on imports of fertiliser-grade urea for more than 65 per cent of our total demand. Industry has advised that near-term planting demand for urea is largely covered, but the risks to the Australian agriculture sector will increase the longer disruption continues.

We have strong trade relationships and experienced fertiliser distributors, with whom the government is working closely. Importers and officials from the government have been exploring, over the course of the period since the conflict began, contingency sources of fertiliser-grade urea, such as in South-East Asia, but the global nature of this shock means that spare production is likely limited.

We are less import dependent for ammonium nitrate and ammonium phosphate fertilisers. The purchase of Phosphate Hill has secured the future of Australia's only manufacturer of MAP and DAP fertilisers. My department is also engaging on the shutdowns at the Yara Pilbara facility—which we've been advised will only last for eight weeks but will allow the firm to bring forward elements of a planned June-July shutdown—and the shutdown at Kooragang Island, which Orica has advised will be resolved shortly.

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

Senator Stewart, first supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister, for that answer. The Albanese Labor government has been working closely with industry, peak bodies and the states since the war in the Middle East began. What engagement is the government undertaking with farmers, importers, producers and the states?

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

():  Thanks, Senator Stewart, for that question. I neglected to say that in the gallery are representatives of Science Meets Parliament—scores of Australian scientists representing tens of thousands of scientists in Australia's research and development sector. You are so welcome to the parliament.

I thank Senator Stewart for that question. Minister Collins met yesterday with more than 50 representatives from industry, including Fertilizer Australia and GrainGrowers. Ministers Bowen and Collins and I met the National Farmers' Federation and fertiliser industry representatives, and Minister Collins, the industry and the ACCC are working on allowing the fertiliser sector to coordinate to ensure that fertiliser gets to where it is needed. My department is engaged on all of these issues and is providing information to the Fuel Security Taskforce. Fertiliser importers—I'll get to conclude this, I suppose— (Time expired)

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

Senator Stewart, second supplementary?

Jana Stewart (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government has prioritised strengthening Australia's sovereign capability. How has the government's Future Made in Australia agenda made Australia more resilient to global events?

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

(—) (): Of course, the measures that we've undertaken in fuel mean that we have that shock absorber there in terms of the minimum stockholding obligation, and Minister Bowen has released 20 per cent of that. Those options were not available to previous governments. A Future Made in Australia is all about making Australia stronger. The intervention to secure 3,000 jobs yesterday at Boyne Island in Central Queensland makes Australia stronger. The intervention in Glencore at Mount Isa makes Australia stronger. That intervention and our gas reservation announcement securing the purchase of Phosphate Hill and domestic fertiliser production make Australia stronger. The interventions in Nyrstar Hobart and Port Pirie, particularly for critical minerals and metal smelting, make Australia stronger. Our intervention in the steel industry to protect the steel industry, which those opposite never would have protected, makes Australia stronger. (Time expired)