Parliament Debate - 9 Sep 2015

From minister Roberts:

Whatever one's thoughts on this industry may be, companies such as Metgasco have invested after the government of the day issued them with licences. Should extreme action such as cancelling these licences without compensation be taken there would be severe sovereign risk issues for this State. In fact, we may see significant amounts of investment simply leave the State. There may also be questions about the legality of such actions without just cause and subsequent actions.

https://www.parliament.nsw.gov.au/Prod/parlment/hansart.nsf/V3Key/LA20150909044?open&refNavID=HA8_1


Ms TAMARA SMITH: My question is directed to the Minister for Industry, Resources and Energy. Given the overwhelming level of community opposition to coal seam gas, will the Government act to ban this industry in the Northern Rivers region?

Mr ANTHONY ROBERTS: I thank the member for Ballina for her interest in this matter. I was concerned to note that in the Chamber yesterday the member stated:

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    It is clear that the Government's NSW Gas Plan is a failure. The licence buyback scheme has been bungled.

I remind the member that under the Gas Plan the footprint of coal seam gas in this State has been reduced from more than 60 per cent to 8 per cent. The Government has successfully bought back 16 petroleum exploration licences across the State. I remind the member that the petroleum exploration licence buyback is just one of 17 actions outlined in the comprehensive NSW Gas Plan. From accepting all the recommendations of the independent NSW Chief Scientist and Engineer to removing petroleum titles from national parks and supporting households and businesses to use gas more efficiently, the Government is putting in place a clear, strategic framework to deliver world's best practice regulation of the gas industry, securing vital gas supplies for the State.

The NSW Gas Plan should have been in place 15 years ago, when the industry was getting off the ground. What is upsetting about this debate is the unfair and blatantly untrue statements that are hurled around by opponents of the Government. They in no way provide clear, scientific facts for communities across New South Wales. Also upsetting are the constant false negative reflections that are made on members representing the electorates of Lismore, Clarence and Tweed. The rollout of coal seam gas licences in their electorates was not of their making; they are not to blame. No-one from The Greens made any noise about the matter when licences were issued by the then Labor Government. Indeed, I note the comment from Dr John Kaye from The Greens in 2009 that "the potential for local gas generation should be factored into any planning for the far North Coast energy strategy".

The SPEAKER: Order! There is too much audible conversation coming from Government members. They will cease shouting.

Mr ANTHONY ROBERTS: How times have changed, as has Dr Kaye's position. I can inform the House that, under this Government, three licences have been cancelled on the Northern Rivers. We have also reduced the size of licences, such as PEL 445, to such an extent that the electorate of Ballina is effectively now coal seam gas free. As recently as last week this Government successfully bought back and cancelled PEL 457 issued by former Minister Macdonald—

Mrs Melinda Pavey: Who?

Mr ANTHONY ROBERTS: Minister Macdonald—covering 75,000 hectares of the State. All these buy-backs, this claw-back and this taking control was done with the urging of local Nationals members of Parliament who understand the Gas Plan and see that it is working. What is upsetting is the highly irresponsible position that has been taken by Labor on the issue. The last election was the first time people in the Northern Rivers had ever seen a leader of the Labor Party. The Labor Party promised the people of the Northern Rivers that it would cancel licences in the area without compensation. I knew at that moment that it must have given up on becoming a responsible government, because even the Labor Party surely would realise that a government cannot walk away from commitments made in good faith without dealing with those who have been negatively affected.

The people of the Northern Rivers saw straight through Labor's fickle promises and voted accordingly. Whatever one's thoughts on this industry may be, companies such as Metgasco have invested after the government of the day issued them with licences. Should extreme action such as cancelling these licences without compensation be taken there would be severe sovereign risk issues for this State. In fact, we may see significant amounts of investment simply leave the State. There may also be questions about the legality of such actions without just cause and subsequent actions.

The Government has been and continues to negotiate with the titleholders in the Northern Rivers. I note that Metgasco has publicly stated that it wishes to continue in good faith negotiation with the Government, and that will occur. This is a significant and complex issue and I thank the member for Lismore, the member for Clarence and the member for Tweed for the significant work they have done on behalf of their communities. This Government remains committed to putting in place the NSW Gas Plan and delivering the regulation of the gas industry the people of New South Wales deserve.