Kerrynne Liddle (SA, Liberal Party, Shadow Assistant Minister for Health and Aged Care) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Ports are warning trade could grind to a halt unless fuel is urgently prioritised. More than 200 electrical apprentices have been stood down. Vegetable growers are reducing production, rural doctors are holding crisis meetings over fears patients will be left untreated. Public servants are being told to work from home where possible. Federal Police have been directed to change how they drive and when they refuel. Minister, how did this government allow the fuel crisis to escalate to the point where it is now disrupting trade, jobs, food supply, health services and frontline operations across Australia?

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

As I outlined in my earlier answers, what we are facing is the largest shock we have seen to global energy markets. This is an issue that is reverberating throughout the global economy, and countries across the world are grappling with it, which is why we continue to call on Iran to stop holding the—

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

You should tell the US and Israel to stop.

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

Senator, I will take your interjection. I listened to you very carefully yesterday, and, even if you disagree with the conflict, you could at least call on Iran to de-escalate and to—

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

Minister Wong, please resume your seat. I have Senator Cash on her feet.

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

I think it's pretty obvious it's a point of order in relation to direct relevance. It is the opposition's question, with all due respect.

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

I do appreciate it's the opposition's question, but, as you know, interjections can be taken, and—

Senator Cash, I try very hard to maintain order in this place, but, if senators interject, it's up to the minister to take or not take that interjection.

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

I'm very happy to come back to the question; I'm just making the point—and I would have thought the opposition would agree—that it would be good if the Greens occasionally called on Iran to de-escalate. But I will come back to your question, Senator Liddle. It is a global shock to energy markets, and Australia is being affected. We are taking action to seek to deal with it, and we will look at every practical measure that is required to shield Australia from the worst of this global uncertainty.

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

Senator Liddle, first supplementary?

Kerrynne Liddle (SA, Liberal Party, Shadow Assistant Minister for Health and Aged Care) Share this | Link to this | Hansard source

An AUSVEG survey of 150 growers found 27 per cent had reduced or stopped planting, 13 per cent were considering it and growers cutting back had done so by an average of 30 per cent, while 19 per cent had decided not to harvest existing crops because of soaring costs and supply uncertainty. AUSVEG warns the impact on consumers will be felt immediately. Minister, how can your government claim this crisis is under control when Australian families are staring down higher prices and less fresh food on supermarket shelves?

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

First, I again say that this is a global energy shock, and it is having, and could have, effects throughout the Australian economy. We understand that, which is why we have taken action, including introducing legislation around false and misleading conduct of petrol companies, convening National Cabinet—and the Prime Minister has indicated he will call another National Cabinet for Monday—appointing the Fuel Supply Taskforce Coordinator, beginning the release of 20 per cent of our fuel reserves, changing petrol standards to get more fuel flowing, changing diesel standards so our refineries can buy more fuel, tasking the ACCC with fuel price monitoring, engaging with international partners to keep supply flowing and more. As I said, we will look at every practical measure required to shield Australians from the worst of this global uncertainty.

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

Senator Liddle, second supplementary?

Kerrynne Liddle (SA, Liberal Party, Shadow Assistant Minister for Health and Aged Care) Share this | Link to this | Hansard source

Does your government still believe that the fuel crisis in Australia is nothing but far-right extremist scaremongering, as Minister Ayres told the Senate earlier this month?

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

I think I have outlined quite a number of times to the Senate, during question times since the conflict began, the nature of the conflict and the nature of the fuel crisis, which is a global shock to energy markets—the largest in history. I again remind Australians, and remind you, Senator, that it is true that the Strait of Hormuz supplies 20 per cent of the world's oil—that in itself is a very large amount—but it supplies the majority of the crude oil going to the refineries of Asia, and the refineries of Asia are where we get our liquid fuels from. That is an explanation of how the knock-on effects in global markets are affecting us. We are very realistic about that. We are very sober about that, and we are taking responsible steps to do all we can to shield Australians from the worst of this uncertainty.

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

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Ayres. Australia is in a fuel crisis. Big oil companies, like BP, Ampol, Chevron, Shell and ExxonMobil, control fuel held at import terminals and how much is released to the spot market supplying independents that service the regions. Big oil is squeezing these suppliers, forcing regional service stations to raise prices. At the same time, big oil owns many service stations, mainly in the city, and is using regional price rises as an excuse to start gouging at their own outlets. Big oil is strangling regional independents and using those price hikes to justify price gouging in the city. If the government declared a fuel emergency under the Liquid Fuel Emergency Act 1984, it could force supply to the regions and stop the gouging. Will you declare an emergency to stop this extortion at the bowser, as One Nation has called for?

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

Thank you, Senator Hanson. It is the case that this conflict in the Middle East is an unprecedented shock. I think the IEA director-general was here during the week, and he said that it was, in his view, the largest in history. We are taking every practical action that is open to the government. We are aware, of course, of the powers that are in that act from the early 1980s, and we have regard to all of those questions in terms of our approach. Our judgment is that the practical action that we are undertaking now, including in relation to the ACCC's powers in these hours, is the most effective approach.

We have to work together—government, the petroleum industry, including the retailers and distributors, industry more broadly, farmers, miners, the manufacturing sector and the construction industry all working together to deliver the right result. We've already acted to release up to 20 per cent of our diesel and fuel reserves—that is, reserves that otherwise would not have been available but for the actions of this government—as a shock absorber for the Australian economy. In our judgment it was the right thing to do to release 20 per cent, to relieve some of those pressures in distribution chains, particularly, as you point out, in regional Australia, where independent retailers struggle to secure supply in the spot market, in a market that has been constructed historically to provide for the maximum competition. We've given the ACCC new teeth, and we have also lifted the powers of the ACCC that prevent the companies working together to secure supply in a cooperative way. (Time expired)

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

Senator Hanson, a first supplementary?

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

Minister, you claimed there's no shortage of fuel in the country, yet farmers in regional areas can't get diesel to plant crops, keep animals alive and get food transported to supply the cities. Does the minister foresee any impediments to the production, processing and transport of crucial food items into the retail market?

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

As I indicated earlier this week and last week, this is a very significant event in the Middle East. It means that we have a very significant impact on our economy, in direct and indirect ways, and, the longer this conflict goes on, the harder those effects are going to be for the economy to deal with. The minimum stockholding obligation that we imposed and implemented in the Australian economy means that there is that shock absorber. Releasing 20 per cent means that more fuel has been available, and that has had a useful impact. We are not complacent about that; we are continuing to work with the ACCC, and we appointed the Fuel Supply Taskforce, led by Anthea Harris. The government is very focused on these supply questions, particularly in regional Australia— (Time expired)

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

Senator Hanson, a second supplementary?

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

Minister, your government will collect $300 million extra a month in GST on fuel off the back of the price gouging that is going on. One Nation is calling on you to cut the fuel excise fully for three months and/or cut the GST on fuel, which is a tax on a tax, and relieve pressure off Australians.

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

This government, as I've indicated, has taken action over the course of the period since the conflict and hostilities in the Middle East began. We've introduced new laws to double penalties for false and misleading conduct up to $100 million; convened National Cabinet; appointed a national Fuel Supply Taskforce, led by one of our most experienced energy officials; began the release of 20 per cent of Australia's fuel reserves so that shock absorber can get to work; changed petrol standards to get more fuel flowing; and made it easier for Australian refineries to access government funding when they run at a loss so that we're not seeing the closure of more Australian refinery capacity, which is what we saw under those opposite.

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

I raise a point of order on relevance. I asked a direct question about cutting the fuel excise and the GST.

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

The minister is being relevant to your question, Senator Hansen. I will continue to listen carefully and, if he isn't, I'll draw his attention to your question.

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

We've introduced new laws so that the Fair Work Commission can demand companies pay truckies fairly when fuel prices spike. I want to see what you and your colleagues do, Senator Hansen, in relation to those laws that mean truckies get a fair deal. (Time expired)