James McGrath (Queensland, Liberal National Party, Shadow Special Minister of State) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Minister, a grain farmer has told the North Queensland Register that he has spent more than $1½ million just securing enough fuel to sow this season and that, if supply doesn't hold, he will halve his planting program. Minister, what is this government's plan for if grain farmers halve their planting?

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

Senator McGrath identifies one of the many problems that the government has been seeking to address, and that is the downstream effects, the knock-on effects, of a lack of supply in fuel to many parts of the economy but, of particular importance, to Australian agriculture, and that is correct. That is why the government has been working on additional supply not only in the work that Minister Bowen has done over a number of weeks but in the announcement that the Prime Minister and the minister made over the weekend, which will enable the underwriting of private-sector purchases of fuel. That is all about securing additional fuel for our economy. It is an additional supply measure, precisely because we recognise that we need fuel throughout our economy. We also recognise particularly, as Senator McGrath says, the impact of any lack of supply or inconsistency of supply on particular industries, including agriculture. The National Fuel Security Plan goes through how state and territory governments will work with us.

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

Minister Wong, please resume your seat. Senator McGrath?

James McGrath (Queensland, Liberal National Party, Shadow Special Minister of State) Share this | Link to this | Hansard source

On a point of order in relation to relevance, the question was in relation to grain farmers halving their planting. I am wondering if the minister could address that.

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

The minister is being relevant to your question, Senator McGrath, and I'll continue to listen carefully.

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

You asked about the impact on agriculture of fuel security, and I answered by talking about fuel security and more supply. If you do not think that is relevant, it says something about the opposition's lack of understanding of the policy challenges—the lack of understanding of those opposite about the policy challenges that the country faces. What we are seeking to do is to secure more supply. What we are seeking to do is to secure more—

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

Order! Minister Wong, have you concluded?

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

What we are seeking to do is to secure more supply for farmers, for regional communities and for the country, and that is because we understand the consequences of not doing so. That is the announcement that we have made, and the fuel security— (Time expired)

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

Senator McGrath, first supplementary?

James McGrath (Queensland, Liberal National Party, Shadow Special Minister of State) Share this | Link to this | Hansard source

Minister, it is no longer a fuel crisis; it is now a fuel and fertiliser crisis. Urea prices have nearly doubled from $800 to $1,500 a tonne. The latest Rabobank Rural Confidence Survey shows farmer confidence has crashed to minus 20. Grain farmers are warning that combined fuel and fertiliser costs will markedly lower Australia's wheat production, even if the conflict is resolved tomorrow. Does the government now accept that the planting window is closing and the damage to this year's harvest may already be done?

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

What we would say to farmers is: we absolutely understand the importance of ensuring sufficient supply not only of fuel but of fertiliser. We understand it is not only critical for your businesses but critical for the national economy and for Australians everywhere. That is why the new Export Finance Australia underwriting powers which I have referenced, which were announced on Saturday—

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

It's for the big four oil companies.

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

Well, that just shows your lack of understanding, Senator McKenzie. Really!

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

Senator McKenzie, come to order!

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

It's precisely because of the consequences such as those to which you refer, Senator McGrath. The EFA underwriting powers are designed to de-risk additional untrialled, contracted shipments of key products directed at regions and industries suffering shortages, and we are very conscious of the importance of fertiliser— (Time expired)

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

Senator McGrath, second supplementary?

James McGrath (Queensland, Liberal National Party, Shadow Special Minister of State) Share this | Link to this | Hansard source

Minister, farmers can't get diesel, they can't afford fertiliser, and some can't even keep water pumps running for livestock because their tanks are dry. The Rabobank survey says limited access to fuel and fertiliser means some growers will simply not plant in 2026. When these crops are harvested and food prices go through the roof, will this government finally take responsibility, or will it keep telling farmers and families there's no need to panic?

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

We all want farmers to plant.

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

You can't farm without fuel.

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

Well, that is why we have moved to shore up those supply chains both for fuel and for fertiliser—both urea based and ammonium phosphate based fertilisers. I would just make this point: we all understand the consequences of this conflict in our economy, including in agriculture. And the government made a very conscious decision to ensure that the EFA powers were not just directed at fuel but were directed at the other lines—supply chains—including for urea, which are so critical for the Australian economy and for our food security.