Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Japanese energy companies are already signing major long-term LNG supply agreements with the United States, while Japanese industry has warned that uncertainty around Labor's gas policies risks undermining confidence in Australia as a reliable long-term supplier. Minister, after decades in which Japan has relied heavily on Australian LNG, why is Labor making Australia a less certain place for Japan to secure its future energy needs?

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

The one thing I do agree with Senator McDonald on in that question is the importance of Japanese investment in Australia, including but not limited to the Australian gas industry. I would again make the point that we on this side regard our relationship with Japan as a relationship of trust, a relationship that we give great priority to and a relationship where there is a great deal of trust and strategic alignment.

In relation to the gas reservation, you would be aware that the government has made a set of announcements. It is engaging with international partners and the industry about how that reservation is to be designed in accordance with the principles that cabinet has agreed and ministers have announced. We are very conscious of the importance of consulting with the sector about how we give effect to that reservation policy. We are very conscious of the various policy objectives which are at play here. Those policy objectives include ensuring that we have sufficient gas for Australia on which we can continue to build Australian jobs, ensuring certainty for investors, encouraging more investment—including investment from our friends in Japan—and bringing on further supply in the gas industry. The government is working through that. As I said, we are very conscious of the importance of all of those policy objectives, and we are working through that in a sensible and mature way.

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

Senator McDonald, first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

Minister, Japanese buyers are locking in decades of LNG supply from the United States and Qatar at the same time as Australian LNG exports to Japan are forced to decline substantially. Does the Prime Minister accept that policy uncertainty in Australia is giving our competitors an opportunity to take market share that should be supporting Australian jobs, investment and export income?

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

What I would say to you is it is important to ensure we maximise the benefit to our country of Australia's gas reserves, and that requires us to first ensure that we maintain a market which enables investment certainty which enables the investments of billions of dollars. They are multibillion-dollar projects to bring on gas to the market. It is also important to ensure that Australians and Australian jobs are benefited by the gas reserves we have. We want us to not only be a good exporter; we want us to do more. We want to actually ensure that we have sufficient gas in domestic supply to enable manufacturing jobs in this country and advanced manufacturing jobs in this country. You talk a lot, on your side of politics, about the importance of energy. Well, this is an example of how energy security underpins economic— (Time expired)

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

Senator McDonald, second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources and Northern Australia) | Link to this | Hansard source

Minister, Japan is one of Australia's most important economic and strategic partners. Why has the Prime Minister allowed uncertainty over Australian gas supply to become another source of concern in the relationship, and what guarantee can you give today that Australia will remain a reliable long-term LNG supplier to Japan?

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

Of course we will remain a reliable long-term supplier of LNG to Japan. I think we have demonstrated that as a nation across a number of decades. I would also say to you, Senator, that we want to ensure we maximise the benefit to Australia from Australian gas supplies. That means not only an export industry which will continue decades into the future but also ensuring that we—

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

Order! Senator McDonald, you've asked your question.

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

Senator, we have a fundamental difference, and we saw it in your interjections a long time ago. We actually think there is a place for Australian manufacturing jobs. We think that ensuring that there is a secure supply of energy in this country is central to continuing to build the economic complexity and advanced manufacturing we need. And we are committed to both. (Time expired)