Tim Storer (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Defence, Senator Cormann. Several members of parliament have repeatedly expressed concerns around Australia's liquid fuel security, given we now import more than 90 per cent of our transport fuels—up from 60 per cent in 2000—and, according to Department of the Environment and Energy data, we had a mere 21 days of petrol stock, 16 days of diesel and 19 days of aviation fuel as of December 2017. In a submission to the Select Committee on Electric Vehicles, which I'm chairing, the former deputy chief of the RAAF, Air Vice-Marshal John Blackburn AO, said:

Electric vehicles could play a significant role in improving Australia's energy security by reducing the demand for foreign sourced liquid fuels and by providing a significant increase in transport system resilience in the event of a fuel supply disruption.

Has the government given any consideration to the role electric vehicles could play in improving our fuel security?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I thank Senator Storer for his question. The government takes the issue of fuel security very seriously. A number of coalition members and senators have also raised the importance of national fuel security with the government. That's why, to help deliver affordable and reliable energy, the government is undertaking a review of Australia's liquid fuel security by the end of 2018. The comprehensive review will look at how fuel is supplied and used in Australia, including our resilience to withstand disruptions both overseas and in Australia. The review will identify whether the government should take further steps to ensure Australia's domestic fuel supply is reliable and inform our plan to return to compliance with the International Energy Agency's emergency stockholding obligations by 2026. I remind the Senate that Australia's domestic supplies of liquid fuels have not been impacted by a significant supply disruption for the past 40 years. The review has strong industry support. Making sure we aren't complacent is the prudent and proper thing to do. That should not be construed, though, as Australia having an actual fuel security problem. The government has emergency powers and an agreement with states and territories which sets out the arrangements to effectively manage a national liquid fuel emergency.

Senator Storer raised the potential contribution of electric vehicles to reducing Australia's reliance on liquid fuel. In that regard, I note that Senator Storer is actually chairing the Select Committee on Electric Vehicles to inquire into the use and manufacture of electric vehicles in Australia. No doubt we will receive some fine recommendations out of that inquiry in due course.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Storer, a supplementary question.

Tim Storer (SA, Independent) Share this | Link to this | Hansard source

As tensions between the US and Saudi Arabia continue to simmer over the disappearance of journalist Jamal Khashoggi and threaten to push global petrol prices even higher, what is the government doing to support the uptake of electric vehicles so that we can be in more control of how much we pay for our transport fuel?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

The Australian government is providing support to the rollout of electric vehicles around Australia, including financial support through the Australian Renewable Energy Agency and the Clean Energy Finance Corporation. ARENA's focus has been on supporting emerging technologies and helping to move them closer to commercial reality. Progressing new and innovative energy technologies from early-stage research and development through to commercial deployment is critical to ensure that Australia remains at the forefront of technological progress and enjoys the benefits that advances in technology can bring.

The Clean Energy Finance Corporation has acted as a catalyst to increase investment in clean energy investment. In the five years that the CEFC has been operating, around $5 billion of capital has been deployed, and the CEFC has directly invested in more than 110 individual transactions and delivered finance for over 5,500 smaller-scale clean energy products.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Storer, a final supplementary question.

Tim Storer (SA, Independent) Share this | Link to this | Hansard source

Has the government assessed the economic benefits that would flow to Australia from switching transport fuel from imported foreign oil to Australian-made electricity, also noting the cost of running an EV in Australia is around 33 cents per e-litre versus around $1.60 per litre for internal combustion engines?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

As I've indicated in response to the primary question, the government has commissioned a review of liquid fuel security, and I do not want to pre-empt the conclusions and the findings and possible recommendations of the review. But I'm sure that the respective trade-offs between various energy security options will be canvassed as part of the review and form part of the recommendations that are put to the government in due course.