Question Time AU

Bill Debate · In Committee

Export Finance and Insurance Corporation Amendment (Strategic Reserve) Bill 2026; In Committee

Senate · Tuesday 31 March 2026

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate focused on the government's use of Export Finance Australia to import liquid fuels amid an energy crisis, with Senator Canavan questioning the consistency of this approach with previous fossil fuel restrictions and international agreements. Senator Canavan argued that the bill subsidises overseas production while domestic restrictions remain, citing national security vulnerabilities due to high import dependence. Senator Roberts opposed the bill's alignment with net zero targets and advocated for domestic self-sufficiency and gas-to-liquid conversion. Minister Farrell defended the legislation as an urgent emergency measure to secure fuel supplies, rejecting claims of government inconsistency and highlighting ongoing domestic gas production.

Outcome

The bill was considered in committee with no amendments moved or recorded in the provided transcript.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Matthew Canavan (QLD) (Liberal National Party) LNP

Senator Canavan supported the bill but criticised the government's historical restrictions on fossil fuels and its commitment to the Belem declaration on transitioning away from fossil fuels. Canavan argued that the government's strategy was inconsistent, noting that while the bill subsidises imports, it retains prohibitions on domestic fossil fuel support through section 23C of the Export Finance and Insurance Corporation Act. Canavan questioned why the government had not removed these restrictions to allow Export Finance Australia to use its commercial account for domestic investments, which would provide greater flexibility. Canavan also highlighted national security risks associated with Australia's heavy reliance on imported liquid fuels, citing data that 50 per cent of imports by weight are liquid fuels.

Government response

Don Farrell (Minister for Trade and Investment) ALP SA

Minister Farrell confirmed the government's continued support for the Belem declaration and its commitments under the Australia-EU free trade agreement regarding inefficient fossil fuel subsidies. Farrell defended the use of the National Interest Account as the most effective mechanism to secure spot cargos quickly, particularly for regional areas. Farrell rejected the characterisation that the government had demonised the resources industry, pointing to ongoing gas production in the Barossa, Beetaloo, and Cooper Basin projects. Farrell emphasised the urgency of the legislation to ensure reliable fuel supplies for businesses and consumers during the current emergency.