Export Finance and Insurance Corporation Amendment (Strategic Reserve) Bill 2026; Second Reading

Penfold moved an amendment noting the government's initial denial of the crisis and failure to strengthen sovereign fuel capability. Penfold supported the bill as a necessary step to finance imports but argued it favoured major corporate importers over small independent operators struggling with cash flow. Penfold called for the removal of restrictions preventing Export Finance Australia from supporting domestic coal, oil, and gas projects to ensure full supply chain resilience.

Ryan supported the emergency measures but warned that reactive legislation could distort markets and create dependency, potentially leading to higher prices. Ryan raised concerns about the lack of fiscal guardrails and the exposure of the Commonwealth to financial risks through derivatives and hedging. Ryan argued that genuine energy security required accelerating the renewable transition and reducing fossil fuel subsidies, such as the fuel tax credit scheme, rather than relying on imported stocks.

Spender supported the bill's use of Export Finance Australia to stabilise supply but called for an earlier review of the expanded powers. Spender proposed implementing a windfall tax on war-driven gas profits to fund relief measures and reduce fiscal strain. Spender emphasised the need for long-term resilience through electrification, particularly for freight, and argued that Australia's limited crude oil reserves made domestic extraction an insufficient solution.

Steggall described the bill as a necessary short-term circuit breaker but argued it did not address the structural dependence on fossil fuels. Steggall advocated for treating electric vehicle uptake as a fuel security strategy to reduce exposure to global price shocks. Steggall called for the removal of fuel tax credits for mining and the introduction of an export tax on gas profits to balance the budget and fund resilience measures.

Joyce moved an amendment calling for a review of the bill's potential conflicts with the Safeguard Mechanism, arguing that climate policies impeded fuel security. Joyce dismissed electrification as impractical for heavy transport and warned of future supply disruptions from geopolitical conflicts. Joyce urged the government to abandon net zero targets and focus on securing immediate fuel supplies and addressing food security risks associated with diesel shortages.

Young supported the bill as a sensible crisis response but criticised the government's earlier denial of the problem. Young highlighted the critical need for diesel in agriculture, particularly for the upcoming winter cropping season, and warned of food security risks if sowing was delayed. Young proposed amendments to allow Export Finance Australia to support domestic oil, gas, and coal production, arguing that resilience required backing homegrown energy sources.

Birrell supported the bill but described the government's response as chaotic and complacent, noting the severe impact on regional farmers and businesses. Birrell emphasised that diesel was essential for agriculture and that the bill did not solve immediate distribution issues or price pressures. Birrell argued that the legislation exposed the contradiction of funding imports while restricting domestic fossil fuel investment, calling for amendments to remove those restrictions.

McCormack supported the bill but criticised the government's delay and the burden placed on the Fuel Supply Taskforce Coordinator. McCormack warned that fuel shortages threatened the sowing season, which could lead to a food security crisis. McCormack advocated for exploring domestic alternatives, such as converting waste oil and tyres into fuel, and called for the ACCC to investigate allegations of price gouging and hoarding.

Chaney supported the bill to address immediate fuel supply disruptions caused by geopolitical conflict. Chaney expressed concern over the broad ministerial discretion granted to Export Finance Australia and the lack of clarity on total financial exposure beyond the $2 billion appropriation. Chaney urged the government to ensure contracts include upside sharing for taxpayers and to maintain transparency in contract negotiations.

Sharkie highlighted the severe impact of high fuel prices on motorists and small businesses, noting diesel costs around $3.25 per litre in her electorate. Sharkie criticised Australia's non-compliance with International Energy Agency reserves obligations, citing only 30 to 39 days of stock compared to higher levels in other nations. Sharkie argued for re-establishing domestic refineries and increasing onshore fuel reserves to ensure national sovereignty.

Wallace welcomed the bill but criticised the government for delayed action on fuel security despite early warning signs of conflict. Wallace detailed the impact of diesel shortages on fishermen and farmers in his electorate, noting prices exceeding $3.15 per litre. Wallace raised concerns about the adequacy of military fuel stocks and linked rising construction costs to broader inflationary pressures under the current government.