Press conference at Sydney CPO

CHRIS BOWEN: Thanks for coming everyone. Well, Australian Governments have known for a long time that as the Bass Strait supply dwindles of gas to Australia's domestic market that we were facing limiting shortfalls in gas, particularly on the East Coast.

As we've said many, many times, as Australia transitions to renewable energy, gas will play a very important role in backing up that renewable energy as we undertake this most important transition.

It's very important that we have good, solid, and stable supplies of gas. Governments have been warned about there for some time, but only this government has taken action.

And today I'm pleased to announce the latest steps that we have taken.

As you know, last year, we introduced the Gas Code of Conduct to anchor prices to ensure that international instability - that international pressure on prices did not flow through to Australian domestic gas users.

We very carefully, after proper consultation with gas users and suppliers, introduced our regime of exemptions where supply was coming on specifically for domestic use, not for export, but for the use of Australian users of gas to deal with predicted shortfalls and shortages.

And today I'm announcing that we have reached two further exemption notices to ensure that ongoing supply of gas to the Australian domestic market under the Gas Code.

The arrangements we are entering into with Esso and Woodside ensure 260 petajoules of gas will be available extra for Australia and for Australians between now and 2033. This comes, of course, on top of the announcements we made last year in relation to Senex and APLNG, and that means a total of 564 petajoules extra domestic gas supply.

Now this is only possible because of the domestic Code of Conduct that this government introduced and insisted upon in Parliament; a Code of Conduct that the Greens, One Nation, and Clive Palmer's party, together with Senator Canavan tried to disallow, and the Liberals didn't support by not turning up.

This is entirely the result of the Albanese Government's actions. Other parties have done their best to try and undermine these actions.

I understand there are different views about the role of gas, but I would have thought most political parties would come together and accept that gas demand in Australia that we're going to have for the next several years should be met, not by exports, but by production for domestic use.

Apparently, the Albanese Government are the only party in the Parliament that actually believes that because we're the only party in the Parliament that actually voted to protect and deliver the Gas Code of Conduct, which is making this announcement today possible, the announcement by Minister Madeleine King and I today possible. It wouldn't be possible without the Gas Code of Conduct.

So this is important. It ensures continuing gas supply to Australia's industrial users, the big industrial users of gas who need that guaranteed supply going forward, supply to Australia's East Coast gas-fired power stations, which are very important for peaking and firming as we transition to renewables, and important for ensuring that Australian gas users continue to be protected against the pressures of international gas supply.

Now what I'll do is, I'll take questions just on gas; we have journalists in the room, we have a journalist on the phone, and then I'll take other questions separately on other matters of the day. So just on gas perhaps in the room first, Peter.

JOURNALIST: Minister, is this all the gas kind of decisions you have to make, or you're still looking to make? Is there anything else you need to do to secure the gas supplies? And if that element of energy supply, if you like, is sorted, can you tell us what are the plans for the black coal price cap? Are you extending that beyond June 30 of this year?

CHRIS BOWEN: In relation to gas, Peter, you know, we'll always look at what arrangements are necessary and potentially going forward with particular gas companies. So, I'm pleased with the four exemptions that we have struck so far. They will go a long, long way, a long, long way, to detailing with those projected shortfalls projected by both the ACCC and AEMO previously. Of course, ACCC and AEMO will update their projections in light of these commitments going forward, but I think it's pretty clear that these make a huge difference. If we need to do more, obviously we'll look at what sensibly can be done, but our focus has been these four exemptions; the two that we announced last year, and the two that we're announcing today.

In relation to the coal caps, we've made it clear previously that they were a 12-month arrangement, and we are not contemplating, and I know New South Wales and Queensland are not contemplating extension. That is as has been previously indicated.

JOURNALIST: I guess for consumers, what could they physically see as a benefit to them from these exemptions?

CHRIS BOWEN: I think Australians understand that the big pressure on energy prices over the last two years has come from international coal and gas prices. Hence, we acted to shield Australians from those impacts, and this is really the latest of that iteration because what we're doing is ensuring ongoing domestic supply.

If you had a supply crunch, if you had a shortage, then it's obviously going to put pressure on the system and on prices. We're ensuring that we have the necessary supply for that stability, and also ongoing sensible prices for Australians to pay.

JOURNALIST: In terms of the cost-of-living -

CHRIS BOWEN: Well, hang on, we're just doing gas first.

JOURNALIST: No, the cost-of-living with gas.

CHRIS BOWEN: Right.

JOURNALIST: Because you've got the Gas Code, so that is ensuring there's adequate supply for some time. And we've seen, as you've mentioned before, wholesale prices are actually much lower than the year before. As the Energy Regulator prepares the default market price, do you have any expectation about how much it's going to be reduced because of what you’ve done?

CHRIS BOWEN: Well, I'm very pleased with the wholesale prices that we're seeing, very substantially under 12 months ago. That's as a result of two things really; the policies the government's put in place both in relation to relief, both through the caps and through direct relief, and the fact that renewables are so much cheaper than other forms of energy.

In relation to the draft DMO, I'm not going to pre-empt, that is brought down by The Australian Energy Regulator, it is hers to announce, not mine, and I'll leave her - I'll leave the Regulator, Clare Savage to announce it.

JOURNALIST: So these exporters are now exempt from the price cap. What protections are in place to prevent them from selling at inflated prices?

CHRIS BOWEN: Well, there's various substantial penalties under the Code, for breaching of the Code. Producers have undertaken to supply the Australian domestic market, and that is necessary to keep the downward pressure on prices. They will comply because the penalties for not complying are so substantial.

I might go to the phone. I think we've got Channel 10 on the phone, on gas.

JOURNALIST: So, my question is about that, some of these deals have been secured under the exemptions framework. As the previous question said, this means they won't be capped at $12 a gigajoule. So how much could they charge potentially at most for this gas?

CHRIS BOWEN: Well, what we've got, as you know, is a price anchor. So basically, what we're saying is there's a price cap under the Code, and if you undertake to bring domestic supply on, so supply focused and guaranteed for the domestic market, therefore reducing prices domestically as opposed to for export, then you'll get an exemption, and you can enter into deals.

But of course, the extra supply itself, the more than 500 petajoules itself, reduces prices by increasing supply. So, the cap remains under the Code for people who don't have an exemption, that obviously is huge competitive pressure in the market, which anchors the price across the market towards that $12 figure, and then the exemptions are all about bringing on extra supply to put further downward pressure on prices.

JOURNALIST: And just one more. So, these two new deals and the two from last year, it's going to provide about five years' worth of gas, but it's over a 10-year period, so how confident are you that this - we will avoid blackouts over the next decade?

CHRIS BOWEN: Well, it's not about blackouts. I mean, you know, the Opposition's been running around predicting blackouts all summer. They want Australia to fail. I mean the Liberal Party wants Australia to fail. The Liberal Party would like nothing more than to see blackouts across the market.

Now, of course, the energy system has been coping very well this summer because of the strong preparatory measures put in place by AEMO, the Commonwealth Government, and State Governments.

Queensland, today, for example, as Minister de Brenni has rightly said, huge demand in Queensland today, and all the advice is that the system is up for coping with that demand today, because of the preparatory actions put in place by the Queensland Government, all the State and Territory Governments working with the Commonwealth Government and with AEMO.

So, you know, this irresponsible talk from the Opposition that we saw over months, you know, Ted O'Brien saying there will be blackouts this summer; they want Australia to fail. Opposition should be about presenting alternative ways for the country to succeed, about suggesting differences in the battle of ideas, not just sitting on the sidelines hoping that Australia fails, hoping that we get blackouts.

The Governments of Australia have been working very hard to ensure that we are as well prepared as we could be going into this summer, and we have been well prepared, and that is showing in the results this far.

JOURNALIST: Sorry, just one more question on gas. So for the agreement announced this morning, does this signal any cause for concern for any international buyers?

CHRIS BOWEN: No. No, no. I mean we are   it's a fair question, but we are ensuring that Australia has always been a reliable supplier of energy, and we remain a reliable supplier of energy. This is about new gas for domestic circumstances. It's not about disrupting existing contracts that supply to our international trading partners.

JOURNALIST: Just on cost-of-living.

CHRIS BOWEN: Yeah, we'll move on to matters of the day now. Yes.

JOURNALIST: Why is it necessary to recall Labor MPs this week, and what options are available now that weren't last year?

CHRIS BOWEN: Well, on the first part of the question, most Australians are back at work and have been for weeks; we're back at work and have been for weeks, and part of being back at work is meeting. That's what Caucus’ do, that's what governments do, is meet. It's part of being at work.

So, it's quite appropriate at the beginning of the year for the Caucus and for the Cabinet to come together and discuss the coming year. That's what a hard-working government does at the beginning of the year, and I know my Caucus colleagues are brimming with energy, and glad to be back at work, and they'll bring that energy to the Caucus meeting later in the week.

In terms of measures, let me just say, I think this government has shown the approach we take. That's why we've delivered cheaper childcare; that's why we've delivered free TAFE places; that's why we've delivered so much cheaper medicine. And I can tell you as an MP, as a Western Sydney MP, those measures are making a difference, a real difference for Australians. And of course, it's why we delivered energy price relief. And I can tell you those measures have made a difference.

So, for example, in New South Wales, because of the combination of our policies $843 saved on average in New South Wales, in Victoria $555, in South Australia, $992. That is concrete action that this government has already delivered. So that's the sort of approach we've taken over the last 18 months in the face of the international pressures that every government in the world is facing, cost of living pressures, every government in the world is dealing with this, we are dealing with it. The sorts of measures that we have put in place are, I think, pretty obviously the sorts of things that we'll continue to see what we can do and what more we can do. Peter.

JOURNALIST: Minister, will you be advocating the extension of those energy rebates as you do require the States also to share the burden?

CHRIS BOWEN: Well, I don't think you'd expect me to outline to you in a press conference what I'll be saying in Cabinet meetings and other meetings, Peter.

JOURNALIST: How can you at the moment justify the expense of having to bring all those MPs back?

CHRIS BOWEN: Well, as I said, I mean Caucus’ meet, the Liberal Party Caucus meets from time to time when Parliament's sitting or not sitting. That's appropriate, we don't criticise that. I think, you know, I was out and about on the weekend, and I was talking to members of my community, and I had members of the community come up to meet me and saying it's great that the government's started work in January and is looking at these issues. This is what a hard-working government does.

JOURNALIST: Would you say a description of this meeting as a costly pre-Press Club and by-election exercise with little return -  

CHRIS BOWEN: Who said that?

JOURNALIST: That's not necessarily anyone has said that -

CHRIS BOWEN: Oh, right.

JOURNALIST: I'm saying, do you think that's a fair description?

CHRIS BOWEN: Well, who said it? You're putting to me a quote.

JOURNALIST: I understand, but it's not necessarily a quote, it's more or less saying this is a -

CHRIS BOWEN: Did you say it? Are you saying you said it?

JOURNALIST: Not necessarily. [Indistinct] question on behalf of someone, but I'm - this is -  
 
CHRIS BOWEN: Well, no, I don't   no, whoever said it, it's a silly characterisation because the Caucus is meeting to do work, the Caucus is meeting to discuss the year ahead, and to share the feedback from communities over the summer break. MPs have been out at all sorts of events over the summer break getting feedback. They'll share that feedback with the Prime Minister, Senior Cabinet colleagues, and the Caucus colleagues, and that will help inform the year ahead. Peter.

JOURNALIST: Is the concern about cost-of-living increases holding back some policies that you would otherwise be introducing such as the vehicle emissions standards?

CHRIS BOWEN: No. Well, I mean emissions standards would be a good cost of living measure because they reduce the amount of fuel that is used by Australians. Fuel is expensive, and if you reduce the amount of fuel by getting more efficient vehicles into Australia, that's a good thing.

It's no secret we've been working on that policy. We'll have more to say. So the answer -

JOURNALIST: [Indistinct] something soon?

CHRIS BOWEN: The answer to that question is no. The first question is no. The answer to the second question is, we've indicated very clearly, we're committed to delivering cost-of-living relief, and fuel efficiency standards are a form of cost-of-living relief, and we'll have more to say. Yes.

JOURNALIST: So, do you think now is a good time for an Indigenous Governor General, given that David Hurley's term is coming to an end soon?

CHRIS BOWEN: Well, the Prime Minister will recommend to His Majesty the King an appointment, and that is entirely a matter for the Prime Minister. Okay, I might go to Channel 10 on the phone.

JOURNALIST: Can we expect energy bill relief to be announced after Wednesday's Caucus meeting?

CHRIS BOWEN: Look, I think I've dealt with the government's approach to cost of living relief. I'm not going to provide an ongoing commentary about, you know, the ins and outs of when and where, but this government has shown a steadfast commitment to providing cost-of-living relief to Australians in difficult international circumstances, and we'll continue to do so.

One last question.

JOURNALIST: Just quickly on business investment visas. Why has the business innovation and investment visa stream been scrapped in favour of a shift to skilled -  

CHRIS BOWEN: Well, I mean Clare O'Neil is doing a fantastic job in recalibrating Australia's immigration system to ensure it's fit for the needs of 2024. The needs of immigration systems change over the years. The immigration system for Australia in 2024 should be fit for the purposes of 2024, and that's exactly what Minister O'Neil's been doing.

Okay, we'll leave it there. Thanks guys.