❓ The Premier defends the WA domestic gas reservation policy, highlighting its success in maintaining lower power prices compared to the eastern states and criticising the Liberal Party's past opposition to the policy.
AnsweredQoN 664Legislative Assembly
QuestionView source ↗
DOMESTIC GAS SUPPLY —
RESERVE
664. Mr D.R. MICHAEL to the Premier:
I refer to the McGowan Labor
government's excellent record in managing the cost of living for Western
Australian households.
(1) Can the
Premier outline to the house how the structure of WA's energy system,
including our domestic gas reservation policy, has delivered lower power prices
for WA households compared with prices in the rest of the country?
(2) Can the
Premier advise the house of the challenges that the Carpenter Labor government
had to overcome in delivering this outcome for Western Australians?
Several members
interjected.
RESERVE
664. Mr D.R. MICHAEL to the Premier:
I refer to the McGowan Labor
government's excellent record in managing the cost of living for Western
Australian households.
(1) Can the
Premier outline to the house how the structure of WA's energy system,
including our domestic gas reservation policy, has delivered lower power prices
for WA households compared with prices in the rest of the country?
(2) Can the
Premier advise the house of the challenges that the Carpenter Labor government
had to overcome in delivering this outcome for Western Australians?
Several members
interjected.
AnswerView source ↗
Can I answer the
question please, Madam Speaker?
(1)–(2) The
federal budget predicts that over the next two years there will be a 56 per
cent increase in the cost of power in the eastern states, or across Australia,
which I assume averages in Western Australia. It will be worse in the eastern
states, in other words. Fortunately, here in Western Australia, we will escape
those significant shocks to power prices, and that is because of a range of
things.
Firstly, the Labor government in 2006
put in the gas reservation policy for Western Australia. It is the only state
in Australia that has it. That means that 15 per cent of gas has been reserved
for use by the state over the last 16 years. Major projects that have been put
in place now have a reservation that ensures we get some supply for our own domestic purposes. The program was put in
place because, as the Premier at the time, Alan Carpenter, who had been
the Minister for State Development, as indicated in my notes said on 28 July 2006
—
''Unless we get domestic gas
reservations of our offshore gas field, potentially the WA economy will be severely affected. Our industry could be
devastated. Households could be paying � much bigger power bills then we're
paying today.''
In
October 2006, the Labor government released its domestic gas reservation policy
with a 15 per cent gas requirement for future domestic use. It was to be
flexible and negotiated on the basis of each project. As I said a moment ago, I
negotiated that with Woodside on the Scarborough project.
The campaign against—who led
it? On 28 July, John Howard told the ABC, and I refer to my notes —
''In
the end, if you are to continue to encourage investment, you shouldn't
put fetters on what the investors can do with the product he or she
discovers.''
John Howard said that; how wrong
could he be? We have seen $100 billion worth of investment in Western Australian
projects with the reservation policy since it was announced. How wrong could
the Liberal Party be? Remember Ian Macfarlane, the gravelly voiced fellow? He
said this in August 2006 —
� if
Alan Carpenter thinks that gas should be sold in Western Australia at
discounted price then he has got ample income from his royalties from
resource companies to subsidise that price to consumers.''
In other words, no reservation
policy, and we should have to subsidise the gas that we own. That was Ian Macfarlane's
policy position. On 28 September 2006, Ian Macfarlane went on to say —
The Carpenter proposal may well be
the Premier's panic reaction to the realisation that WA has failed to
maintain its long-term energy plan.
�
If this proposal succeeds, all of
Australia, and particularly those in the West, would ultimately pay for
Carpenter's myopia.
Federal Liberal minister Ian
Macfarlane said that; how wrong could he be? Here we are, 16 years later, and
the rest of Australia is wishing they had Western Australia's policy;
they are begging to have Western Australia's
policy. Go and ask the people in Melbourne or Sydney which one they would
rather —the Liberal Party's prescription, or what this
party did when it was in office. Industry leaders compared Alan Carpenter to Hugo Chavez and said the policy was
similar to Venezuela. Very senior industry leaders of the day were
saying those sorts of things.
All I would say to the house is this:
we are very fortunate that the reservation policy was put in place. To those who argue, as I heard one Liberal Party person
argue yesterday, ''It was already there'', why did they oppose it? If it was already there, why did
industry oppose it and why did the Liberal Party oppose it in 2006? In
other words, you do not know what you are talking about, Leader of the Liberal
Party. You are a buffoon. You sit there while you are still here; you do not
know what is going on. While you are there, enjoy the ride.
question please, Madam Speaker?
(1)–(2) The
federal budget predicts that over the next two years there will be a 56 per
cent increase in the cost of power in the eastern states, or across Australia,
which I assume averages in Western Australia. It will be worse in the eastern
states, in other words. Fortunately, here in Western Australia, we will escape
those significant shocks to power prices, and that is because of a range of
things.
Firstly, the Labor government in 2006
put in the gas reservation policy for Western Australia. It is the only state
in Australia that has it. That means that 15 per cent of gas has been reserved
for use by the state over the last 16 years. Major projects that have been put
in place now have a reservation that ensures we get some supply for our own domestic purposes. The program was put in
place because, as the Premier at the time, Alan Carpenter, who had been
the Minister for State Development, as indicated in my notes said on 28 July 2006
—
''Unless we get domestic gas
reservations of our offshore gas field, potentially the WA economy will be severely affected. Our industry could be
devastated. Households could be paying � much bigger power bills then we're
paying today.''
In
October 2006, the Labor government released its domestic gas reservation policy
with a 15 per cent gas requirement for future domestic use. It was to be
flexible and negotiated on the basis of each project. As I said a moment ago, I
negotiated that with Woodside on the Scarborough project.
The campaign against—who led
it? On 28 July, John Howard told the ABC, and I refer to my notes —
''In
the end, if you are to continue to encourage investment, you shouldn't
put fetters on what the investors can do with the product he or she
discovers.''
John Howard said that; how wrong
could he be? We have seen $100 billion worth of investment in Western Australian
projects with the reservation policy since it was announced. How wrong could
the Liberal Party be? Remember Ian Macfarlane, the gravelly voiced fellow? He
said this in August 2006 —
� if
Alan Carpenter thinks that gas should be sold in Western Australia at
discounted price then he has got ample income from his royalties from
resource companies to subsidise that price to consumers.''
In other words, no reservation
policy, and we should have to subsidise the gas that we own. That was Ian Macfarlane's
policy position. On 28 September 2006, Ian Macfarlane went on to say —
The Carpenter proposal may well be
the Premier's panic reaction to the realisation that WA has failed to
maintain its long-term energy plan.
�
If this proposal succeeds, all of
Australia, and particularly those in the West, would ultimately pay for
Carpenter's myopia.
Federal Liberal minister Ian
Macfarlane said that; how wrong could he be? Here we are, 16 years later, and
the rest of Australia is wishing they had Western Australia's policy;
they are begging to have Western Australia's
policy. Go and ask the people in Melbourne or Sydney which one they would
rather —the Liberal Party's prescription, or what this
party did when it was in office. Industry leaders compared Alan Carpenter to Hugo Chavez and said the policy was
similar to Venezuela. Very senior industry leaders of the day were
saying those sorts of things.
All I would say to the house is this:
we are very fortunate that the reservation policy was put in place. To those who argue, as I heard one Liberal Party person
argue yesterday, ''It was already there'', why did they oppose it? If it was already there, why did
industry oppose it and why did the Liberal Party oppose it in 2006? In
other words, you do not know what you are talking about, Leader of the Liberal
Party. You are a buffoon. You sit there while you are still here; you do not
know what is going on. While you are there, enjoy the ride.
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