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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-11-30 Daily Xml
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Unconventional Gas Projects

Mr GEE (Napier) (14:50): My question is to the Minister for Mineral Resources and Energy. Can the minister outline to the house the impact of a 10-year ban on unconventional gas development in the South-East of our state?

Members interjecting:

The SPEAKER: The member for Chaffey is warned a second and final time.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:50): I thank the member for his question and his desire to better understand the risks to the oil and gas production in this state from policies such as bans on development. Both the Cooper and Otway basins have been important sources of oil and gas for this state and indeed the nation for nearly half a century.

The use of fracture stimulation has been key to the production of more than five trillion cubic feet of gas from this state. Advances in engineering practices have enabled companies to extract gas from both conventional and non-conventional gas reservoirs. Oil and gas activities are not approved in this state without first undergoing stringent assessment. Unless stakeholder concerns are adequately addressed, approval of these activities will not be granted.

As you would be aware, Mr Speaker, the Natural Resources Committee has spent two years inquiring into unconventional gas in the South-East, and it's fair to say that the inquiry's findings are not that there have been any shortcomings in regulation or any impacts on the environment but rather that what we have had here has been an inability to assure the community that has been subjected to an horrendous scare campaign. Despite a 30-year history of gas production in the South-East, more work needs to be done to engage with the local community and assure them of the safety and compatibility of oil and gas activities in that region—multiple land-use frameworks.

In light of recent developments interstate, the industry would have been forgiven a sense of relief when reading these findings. The collective sigh of relief was almost immediately followed by an almighty kick in the guts from the investment killers on the other side of the house. Barely had the committee's report been tabled but the member for Dunstan promised he would impose a 10-year ban on unconventional gas in the South-East.

This is a position not supported by the inquiry, not supported in the evidence provided by the member for Mount Gambier and not supported by the federal Minister for Energy, the Hon. Josh Frydenberg. Minister Frydenberg correctly says that what the Australian market needs is more gas supplies. While there are some legitimate sensitivities, this is what he says: 'Blanket moratoria are not the answer.' To quote Matt Doman, who is the—

The Hon. T.R. Kenyon interjecting:

The SPEAKER: The member for Newland is on two warnings.

The Hon. A. KOUTSANTONIS: To quote Matt Doman, the voice of the Australian Petroleum Production and Exploration Association, the South Australian Liberals—

Members interjecting:

The Hon. A. KOUTSANTONIS: He used to work for a former finance minister, but not one of ours. The South Australian Liberals have shown weak leadership. I quote: 'If implemented, this puts jobs and investment at risk!' Mr Doman warns. SACOME (the South Australian Chamber of Mines and Energy) describes the ban as a 'dangerous message to the oil and gas industry'. The chamber's new chief executive, Rebecca Knol, says that the threatened ban sends a 'worrying precedent to the wider resource sector'.

Santos, a proud South Australian company, recently rated South Australia's number one company by the SA Business Index, says we need to foster gas development, not ban it. I quote, 'Doing so will only push up energy prices and prevent us from meeting our climate commitments.' Beach Energy warns that closing off regions to gas production will only make it harder to supply gas to many customers, and just today, Business SA have condemned the opposition. Just like with shopping hours, just like the nuclear debate—no consultation with industry and blanket bans. He is a weak leader with no vision, he is not interested in growing the state or growing jobs.

Members interjecting:

The SPEAKER: The member for Chaffey is on two warnings.

Mr VAN HOLST PELLEKAAN: Supplementary sir: given the minister's answer, I have a supplementary question for the Minister for Regional Development. Given that he says that he is dedicated to regional South Australia and will bring a regional focus to the cabinet table, will he stand up for the people—

The SPEAKER: That is not a supplementary. The member for Ashford.

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