Varun Ghosh (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Ayres. Global energy markets and supply chains have been disrupted by the war in the Middle East. In response, a key focus for the Albanese Labor government has been strengthening Australia's energy sovereignty and protecting our energy interests. Minister, what is the government doing to secure Australia's fuel and supply chains?

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

Thanks, Senator Ghosh, for that question. One of the most important responsibilities for any Australian government is securing Australia's energy sovereignty. That's why the Albanese Labor government announced $10 billion for Australia's near-term fuel and fertiliser security. That includes a $7.5 billion fuel and fertiliser security facility that gives Export Finance Australia the power to derisk additional shipments of fuel and fertiliser that are otherwise too risky to order without firm contracts. EFA loans, equity, guarantees, insurance and price support are delivering more fuel and more fertiliser for Australians and Australian supply chains just when we need it. It has kept the domestic market for fuels and fertilisers well supplied and flexible.

There's no complacency from this government, with action to make sure that we're securing the near-term fuel and fertiliser supplies for Australians. That's why we announced the $3.2 billion Australian fuel security reserve—around a billion litres for long-term diesel and aviation fuel security focused on regional stockout and essential users in the event of a future energy supply crisis. That's why we've announced an increase to the minimum stockholding obligation, to increase Australia's critical fuel reserves to 50 days. National energy sovereignty is in the first round of the Albanese government's priorities, and that's why we've acted decisively to secure that for Australia.

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

Senator Ghosh, first supplementary.

Varun Ghosh (WA, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese government's work strengthening Australia's energy sovereignty also extends to the gas market. Last week the government announced that LNG exporters will be required to reserve production equivalent to 20 per cent of their exports for the domestic market from 1 July 2027. Minister, how will the gas reservation benefit Australian households and businesses while also protecting Australia's reputation as a reliable energy partner?

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

I thank Senator Ghosh for that question. This is a landmark Labor reform, delivering cheaper gas for Australians and shielding the economy from global shocks. It gives our manufacturers and industry the confidence they need to invest in industrial capability, and it respects export contracts with our trading partners, preserving the trading relationships that are essential for our fuel security. This is the key to Australia's energy sovereignty. Look at what the similar Western Australian gas reservation has delivered: more gas at lower prices, higher manufacturing investment, and good blue-collar jobs in Perth's outer regions and the industrial suburbs. That is what our reservation strategy will deliver for Australia and Australians.

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

Senator Ghosh, second supplementary.

Varun Ghosh (WA, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government is protecting Australia's energy interests because it is vital for our national resilience. What are the economic and social risks if Australia does not strengthen its energy sovereignty?

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

Thank you, Senator Ghosh. We've seen the risks from not securing Australian energy sovereignty, because that was the position Australia was left in when those opposite left office: a decrepit, broken-down, clapped-out electricity system—four gigawatts out, only one gigawatt in—over the tawdry decade that they mismanaged the nation's energy system; our fuel reserves in Texas—Texas in the United States, not Texas, Queensland; four out of six petrol refineries closing on their watch, maladministered by the man who claims to lead the modern Liberal Party; and their crowning failure, the price of gas at almost $32 a gigajoule when they left office. That was their record in terms of energy security. It could not have been worse, and the problem for them is that Australians remember.

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

I advise the chamber that Senator Lambie has given her question to Senator Thorpe.