Slade Brockman (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Cash has submitted a proposal, under standing order 75, today. It has been circulated and is shown on item 13 of today's Order of Business:

That, in the opinion of the Senate, the following is a matter of urgency:

The need to axe the fuel tax and move the fuel to where it is needed, as Australians are being slugged at the bowser while service stations run dry.

Is consideration of the proposal supported?

More than the number of senators required by the standing orders having risen in their places—

With the concurrence of the Senate, the clerks will set the clock in line with the informal arrangements made by the whips.

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

I move:

That, in the opinion of the Senate, the following is a matter of urgency:

The need to axe the fuel tax and move the fuel to where it is needed, as Australians are being slugged at the bowser while service stations run dry.

We now know that Mr Albanese has been dragged kicking and screaming to an announcement that the coalition, days and days, ago told the government it needed to do. But the government had its head buried in the sand. We were told that, if we were to ask for government to halve the fuel tax, we were 'hyperventilating'. Well, guess what. We were hyperventilating on behalf of the Australian people who, when they were going to the bowser, if they could find fuel, were actually paying in excess of $3 a litre for it. We were also told that apparently telling the government that Australians are in pain and that they need relief at the bowser by way of a halving of the fuel tax was 'hyperpartisan'. Again, I don't know what hyperventilating or hyperpartisanship are when it comes to standing up on behalf of the Australian people and saying to the government, 'They are experiencing what you are denying on a daily basis.'

For the last five week, this government sadly has had its head in the sand. They are denying what Australians have known now for going on five weeks is their reality. They drive into a servo—870 servos across this country have now run dry. The government doesn't seem to understand what that means. It means they have run out of fuel. If they do find a servo that has fuel, they have to think twice about whether or not they top up their tank. Why? Because the price of fuel in Australia now is absolutely exorbitant. This is what we've seen from the government for almost five weeks now.

First they denied there was a problem, despite the Australian people and the coalition saying to them, 'There is a fuel crisis in this country.' What's worse is that they then had the audacity to blame the Australian people. They said to the farmers, who were actually topping up their tanks: 'You're taking one too many. There's a demand problem in Australia. It's your fault.' They said to mums and dads who were topping up again because they'd lost confidence in this government that it was their fault that bowsers were running dry. When does this government actually have a good look at itself and take responsibility and say: 'We have actually failed the Australian people. We put our head in the sand. We denied there was a crisis. We told the Australian people everything was okay. When we started realising it possibly wasn't okay, we blamed the Australian people'?

We are now in a full blown fuel crisis across Australia. We are now paying record prices for fuel. In other words, mum-and-dad Australia are being smashed at the bowser. You've got doctors saying people are now not going in for medical treatment because (a) they can't afford the fuel and, worse than that, (b) if you're in rural regional Australia, you can't find the fuel. You've got the waste management industry in Australia saying, 'If we don't get access to diesel soon, we aren't going to be able to pick up the rubbish.' Do you know what happens when you can't pick up the rubbish? Within 48 hours, in the health industry, you have what the waste industry themselves have said is 'potentially catastrophic'.

Then what do we have today? Mr Albanese calls a National Cabinet meeting, and they announce a plan. The problem with the plan is this, though: it does nothing to address what Australians are experiencing today—870 servos across Australia are running dry. That means that, when you go there, there is no fuel to take. You have now got farmers pleading with the government, 'We are not going to be able to seed our crops.' The government doesn't seem to understand what that means. If the farmers can't plant their crops, it means the crops can't grow. Do you know what happens when crops can't grow? You end up with a food security issue in Australia, which ultimately means Australians pay more at the bowser. Axe the tax, but, more than that now, get the fuel to where it needs to be because, without the fuel, Australia can't move, and we need to keep Australia moving.

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

We are in the midst of a global oil shock that is not of our making. It is having wide-reaching impacts right through our economy. The people it's perhaps hurting the greatest are those in regional communities, in our industries—particular mining and agriculture—and in logistics companies. We have adopted a multifaceted response which is targeting supply, distribution and, of course—announced through National Cabinet—price.

I'll go to price first, because price is perhaps what most Australian motorists and industries are most sensitive to. Today, through National Cabinet, the Prime Minister announced that we will be halving the fuel excise, so roughly 26c will be coming off the price of fuel at the bowser. In addition to that, we are suspending for a period of three months, along with the fuel excise, the heavy-vehicle road user charge. This will give companies, particularly our logistics and transport companies, the kind of breathing space that they need right now. It will release some of the pressure in the system. In terms of supply, we released 20 per cent of our fuel reserves—reserves that are now positioned right here in Australia, not in Louisiana and Texas, which are where they were under the previous government—and that fuel has been prioritised for regional Australia, for regional communities, for our primary producers, for our miners and for our big and small industries that are positioned in regional Australia. We also changed our fuel standards to ensure that we can supply a greater amount of diesel and petrol, refined in Australia, to the Australian domestic market. So we're not exporting any fuel; we are retaining it right here in Australia. We have doubled the penalty that can be imposed by the ACCC for price gouging from $50 million to $100 million. We've also appointed a fuel tsar; Ms Anthea Harris has been appointed to help coordinate this national response. In addition to that, we have put aside $2 million for financial counselling to help, particularly, our farmers during this difficult time.

The most important thing, though, is that the Prime Minister has emphasised from the very beginning that he wants a nationally consistent approach, because, obviously, our economy relies on fuel to move goods and services around. We do not want to return to the days of COVID, when there was a confused, fairly incoherent response throughout the country. That only exacerbated the pressure and stress on ordinary Australians and businesses.

But this is not all we're doing. These are some temporary measures that I've talked about, but we also need to look into the long term, into the future, as to how we make Australia more energy resilient, and that means that we need, as much as possible, to decouple ourselves from the crazy volatility of Middle Eastern oil. To that end, we are pumping $1.1 billion into developing cleaner liquid fuels, low-carbon fuels, like sustainable aviation fuel, synthetic fuels and biodiesel. These will be developed through products that are grown right here in Australia by our farmers. Our farmers and our regions will be the beneficiaries. We will be using canola and sorghum and sugarcane as well as tallow. These are waste products which can be repurposed and redeveloped into low-carbon fuels. But that's not all we're doing. As of today, along with previous announcements, we have announced $25 million from ARENA that will be going towards developing heavy trucking electrification. That money is being put into three hubs in Victoria. Just this morning, I had the privilege of seeing an electric prime mover roll into Parliament House. It was parked outside the front.

Opposition Senators:

Opposition senators interjecting—

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

It would have been good if those interjecting had actually gone out and had a look at this thing. It did the journey from Sydney to Canberra on a $50 charge. Heavy vehicle electrification is not science fiction; it is a reality. It is something that we need to scale up in order to reduce our reliance on volatile international oil markets. That is something we in the Albanese government are committed to doing.

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

One Nation was the first party to call this fuel shortage a crisis. We asked how much fuel we had on hand and we were all told there wasn't a problem. The government is playing catch-up. Our policy will cut through the fuel excise completely. Labor's cuts don't do enough. Our policy will also cut the GST paid on fuel. Currently, the Albanese government is profiting $300 million a month from the soaring spike in fuel prices while Australians are struggling. As the pain at the pump increases, so does the government's GST take on every litre. The government halved the fuel tax, but they are still applying 10 per cent GST on top of the total sale. It's an absolute disgrace.

We've seen the price of diesel double over the past few weeks, and that's if you can get it. Our families are hurting, our farmers are hurting and small business is hurting. WA farmers are seeding soon, putting a crop in at much greater cost. It's a double hit; due to the availability and cost, they can't access enough fertiliser. If our farmers aren't getting the fuel and support they need, where is our food going to come from? Australia has got to have a better plan.

One Nation's plan is clear: trigger the Liquid Fuel Emergency Act 1984. Force supply to be delivered to regional areas and independent distributors. Prioritise defence and essential services. Drop the fuel excise completely. Provide GST relief on fuel for three months. Develop policies that allow Australia to find, process and distribute fuel. Refine our own fuel, build new refineries and increase our fuel storage capacity. Strategic fuel storage must be controlled by Australia on Australian shores. Consider a national reserve, with crude oil companies to prioritise the supply to Australia. The needs of Australia must be catered to first. Remove the impediments to using domestically produced fuel. The fuel crisis has been created by decades of net zero destroying our ability to use our own resources. One Nation will abolish net zero and stop the billions in subsidies that Australians are paying for wind turbines. This will put $30 billion back into the pockets of Australian by abolishing the department of climate change.

One Nation has been saying for decades that we need to be self-reliant. We need to regain our sovereignty. We must take control of our country back.

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

I rise to speak to the urgency motion—and not for the first time. This chamber has debated day in, day out since this crisis began, asking the government to step up to the plate and act. We've talked about the crisis in our trucking industry. That is why the opposition called for a slashing of the fuel excise and the road user charge so that our trucking industry, which keeps our country moving, gets the support it needs right now. Truckies are parked up, not filling their tanks, because of the cost of putting it in the tank. And they can't pass that additional cost on to the consumer, but, when they do, watch inflation rise.

From listening to the government, you'd think they'd had it all under control since day one. We are heading into week 5. We are the most diesel dependent country in the world. It is not just our mining industry and agriculture, which pay the bills. Those of us that don't live in capital cities don't have a lot of choice. To hear the ridiculous contributions from the Labor Party senators, who somehow think you can hook up a B-double full of cattle, coming down from Rockhampton to Brisbane, and actually use an electric truck? Seriously! I'm all for electric where it makes sense; that's usually in suburbs and capital cities, where you can plug it in at night. The problem with electric heavy vehicles is you need to fund bridge and road upgrades right across the country because these trucks are too heavy to be in line with regulations—but they don't worry about safety when it suits them.

It's not just the trucking industry being smashed here; our construction industry—every digger, every grader, every crane and every cement mixer—uses diesel. They can't afford to keep adding this to the construction not just of our housing supply but of our essential road and transport infrastructure. The rail industry is screaming for help. Bus operators, particularly school bus operators in rural and regional Australia, cannot afford this cost increase. Our ports are all screaming to know whether or not they are going to be considered essential services if this crisis rolls on.

The anxiety that is out there in business and in the community is a result of this government never taking responsibility. It's always someone else's fault—the state premiers, Donald Trump, Iran. Guess what, guys? You won the election—two in a row. It's all yours, and the great privilege of holding the government benches means you are also responsible for the solutions. Australians are finding you in a dearth of courage in this challenge. Leadership is about courage and stepping into the fray, standing with people and giving them the confidence that you, the government, are going to do whatever you can to help them.

We've seen day in and day out from this government that they don't know what to do. They refused to use the powers they have available to them under current legislation to direct the big oil companies to send fuel where it is needed so that our farmers who are wanting to put crops in, so we don't have a food security issue next season, can get them in. But Minister Bowen refuses to use those powers—and that's because this is a minister who's afraid to be responsible.

I want to put biofuels on the table. It is crazy that we are sending feedstock for clean fuel to Europe so they can secure their own fuel supply domestically, instead of processing that here onshore. We could have done that for a fraction of the cost we've given to Twiggy Forest over the years for his green hydrogen projects. Domestic ethanol capacity sits largely idle despite this global crisis. We've got capacity to produce 360 million litres of ethanol and 100 million litres of biodiesel. That is immediate assistance into the supply problem. Instead, this minister just increases dirty fuel—and we still don't know if it's hit the bowser. Labor needs to do more. (Time expired)

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

It's fair to say everyone in this building is committed to making sure the current crisis we are facing with respect to fuel is addressed. I find it ironic that those opposite and the crossbench want to blame everyone, such as the government, for their problems. It is worth acknowledging that unlike members across the aisle, who are more interested in stunts—and that's what they did on Friday, rocking up to a fuel station and pretending they had a policy to slash the excise. Something they could have done when they were in government was reform the fuel sector, but instead we went from six refineries to two. Then we've got the Greens going on about the craziness of the war, calling it 'illegal' and 'Trump's war' and wanting to blame the US President, saying that somehow he is at fault, but they fail to acknowledge the Iranian Islamic regime's fault in terms of why we are in the middle of this conflict—it sponsors terrorism around the world, but let's forget about that; let's also blame the government for that problem.

The ongoing conflict in the Middle East is one that the government has taken seriously from day one. We have quietly worked in the background to address the concerns and issues that came before it. We have listened to all people—experts and academics. We have acknowledged the work from those in this place. That's why the government has made the announcement today, talking to premiers, to state leaders, about what federal and state governments can do collectively to address the cost-of-living pressures. That's why, today, the government has announced a temporary halving of the fuel excise for all drivers over the next three months. We've also announced the elimination of the heavy vehicle road user charge for the next three months.

I must say that I took issue with the contribution from Senator McKenzie earlier, around the heavy vehicles and road charges, trying to somehow slander those in the trucking industry. If I recall, for many, many years members of the Transport Workers' Union have been calling on government, particularly the conservative coalition government, to reform the trucking industry. All we got from those opposite was a trucking industry made less safe, less productive and less transparent.

Senator Sheldon will no doubt recall those opposite wanting to shut down the transport remuneration tribunal and successfully doing so. The tribunal would have ensured that the trucking industry in this place were a lot safer, paid trucking folks in the industry the right remuneration and, in doing so, been able to get fuel around the country in a much more efficient manner, supporting the refineries that make our fuel—which we all take for granted. It's worth acknowledging the two refineries that we have left, because, again, we had six, and now we only have two, thanks to the coalition government back then.

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications and Digital Safety) Share this | Link to this | Hansard source

You tried to shut it down.

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Senator. It's worth acknowledging, on the record—when we talk about the hypocrisy of those opposite, who come into this place and want to blame the government for the current crisis—that there are a lot of levers that governments have. I acknowledge that. But there are also international things that we, like every other country around the world, are managing. It is a conflict that none of us want to see, but it's one that we have to acknowledge exists.

And it is one where we need to back our friends and allies, like the United States and Israel, because, without a government in Tehran that is sponsoring terrorism around the world—let's not forget that there were at least two terrorist attacks that occurred on Australian soil, and they continue to funnel funds to terrorist organisations not just here in Australia but around the world, exporting this terror and hate. This is the real, core reason why we are dealing with this crisis before us. It is good to see Australia siding with our friends, with our partners, like the United Arab Emirates, and sending military assistance to help our friends when they need it most. I am not going to remain silent in this place and allow those on the crossbench in particular to criticise this government for its actions in defending that crisis. Let's also remember the work we are doing— (Time expired)

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

I start by associating myself with the remarks of Senator Ciccone in relation to Dom Giannini, a journalist who is leaving the press gallery—a great bloke and a very good journalist who will be sorely missed.

I'm really concerned by this move from the Albanese government—after not acting earlier, just capitulating to demands from the coalition. You have to acknowledge that this will bring the price of fuel down for Australians for the next three months, but I think this is poor policy and, ultimately, will not serve us well as a country. We're going to create more demand in the cities at the exact same time that we want to ensure that people in regional areas and farmers have the fuel they need.

Richard Holden, an emeritus professor of economics, has said that this is a 'very bad idea'. He says that removing the fuel excise 'is simply going to make demand higher than it otherwise would be, which is going to make the fuel shortages we've already experienced worse'. Research from the e61 Institute shows that this kind of measure would disproportionately benefit high-income earners. This is short-term policymaking that will result in long-term pain. Independent economist Saul Eslake said that the move increases the chance of a rate hike. This morning, my office met with representatives of the transport industry, who said, 'Clearly, this will hurt the industry.'

So it's bizarre that you have the coalition saying: 'We need fuel in the regions. We need fuel for farmers'—things I strongly agree with. But, at the same time, they're pushing a policy that is going to increase demand in metropolitan areas. It doesn't make sense. Surely, we can do better than this when it comes to dealing with what is a crisis at a time when Australians are genuinely feeling the pinch.

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) Share this | Link to this | Hansard source

What we've heard from the government today is nothing short of a failure in leadership. It's not leadership; it's entirely been deflection. We're told first by the minister that the coalition has engaged in what he referred to as 'hyperventilating' and 'hyperpartisanship' by pointing out that there was a crisis going on under the government's nose that they were refusing to acknowledge let alone address. You'll recall—it was some weeks ago now—that the coalition said, 'Hey, this Iran crisis is going to cause a problem with fuel.' Do you know what the government did? They said, 'Stop dramatising.' What was the phrase Senator Ayres used? I thought that this was fantastic. He called it 'far-right, extremist scaremongering that had people lining up at petrol stations when there was no need'.

Well, I don't know what Senator Ayres does when he's not in this building, but clearly it's not passing a petrol station, because it had nothing to do with the coalition hyperventilating or overdramatising or being hyperpartisan. There was a crisis going on outside the walls of this building, and the government refused to acknowledge it. The problem is: that crisis continues on today. While the government has been talking, getting the next announceable and making sure that Minister Bowen has something to say every single day, the problem has continued. Australians are still lining up at empty bowsers. Eight hundred and seventy petrol stations today are out of one or both fuels. No wonder Australians are beginning to panic. While this government has been accusing others of student politics, families are being smashed every day at the pump.

We were very pleased to see that the government has finally adopted the coalition's policy of slashing the fuel excise. Every day that the government delayed in this decision cost Australians around $16 million from their hip pockets. The coalition announced this policy with the understanding that Australians were doing it tough, that this was on top of the cost-of-living crisis that already existed, and that Michele Bullock, the RBA governor, had said that inflation was out of control before the war in Iran, which was why they needed to raise interest rates. While this was all going on, the coalition were coming up with a genuine plan, whereas the government were simply coming up with excuses. Now they've adopted the coalition's policy, and we're very pleased to see that.

However, they have missed one crucial element. How are they going to pay for it? This is going to cost $2.5 billion. That's the impact on the budget. Annualise that, and you can estimate it at $10 billion a year. That's an enormous stimulus package. There is no plan to save money to pay for the cut in fuel excise. When the coalition announced its policy, it had a plan on how to pay for it to make sure that the impact wasn't inflationary. Clearly, this government has given up on the war with inflation. It has no idea how to get inflation down. Now it's planning on the equivalent of spending an extra $2.5 billion.

When fuel excise is cut, it's good for inflation. It artificially brings down that headline inflation. That's a good thing. Don't get me wrong. It has secondary effects too. It'll bring down the cost of transport, which hopefully will mean that the items that eventually end up on our grocery shelves will be less expensive than they would otherwise have been. However, when the fuel excise cut comes off, that headline inflation will go back up, and, on the way through, we'll have spent $2.5 billion because the government has no idea how to manage a budget. It has made an enormous decision today and has no idea how to pay for it.

Australians will end up paying the price. They'll end up paying the price with higher inflation. They'll end up paying the price with higher interest rates. This is a government that has simply washed its hands of that and said, 'It's a problem with the Middle East.' That's not surprising, because they have blamed everybody else for their problems and their crises. They've blamed the previous government. They've blamed Donald Trump. They've blamed Iran. They've blamed everybody. They've blamed the states. Just last week they were blaming consumers for rushing on petrol, doing the most logical and rational thing: filling up your car with petrol when the prices were lower than they were going to be the following week. Somehow that's un-Australian. How dare the government accuse you of being un-Australian for doing what is entirely rational.

We're very pleased today to see the government finally adopting coalition policy. Hopefully we'll see so much more of it, but here's the problem: How will you get the fuel to the bowsers? There is still no plan for that. Eight-hundred and seventy fuel stations have no fuel. Prime Minister, what will you do about it? (Time expired)

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

The question is that the motion moved by Senator Cash be agreed to.