07-09-04

Australia's dependence on costly imported oil would be reduced and the focus shifted to cleaner fuels under a $ 500 mm scheme announced by Labour. An Energy Fuels Transition Fund would provide capital grants to low emission projects, including those which allow coal to be burned more cleanly. Labour’s energy spokesman Joel Fitzgibbon said the scheme would lower the nation's dependence on imported oil.
"Australia is using oil three times faster than it has been finding it and has been doing so for the past seen years," he told delegates to the World Energy Congress. "This of course is leaving us increasingly exposed to the whims of OPEC, instability in the Middle East and other external factors beyond our control."

Mr Fitzgibbon said the $ 500 mm would be allocated on a case by case basis.

"Yes, it does take funding from the Government's other version, the low emissions technology fund, it broadens the scope of that scheme, brings forward some of the investment initiatives and of course also targets gas and liquids industry in this country," he told.

The dependence on imported oil was posing a huge threat to the Australian economy and was having an enormous impact at the petrol bowser, he said.

Mr Fitzgibbon said a strategy to wean Australia off its increasing dependence on imported oil was desperately needed. He said Australia had to develop and adopt a gas plan as part of a broader strategy to diversify its energy fuels mix.

Labour would also consider options for making gas leases contestable after the first renewal. And it would maintain the current fuel taxation arrangements for LPG, ethanol, compressed natural gas (CNG) and biodiesel. Mr Fitzgibbon said Labour was committed to reducing carbon output, and would announce plans to boost competition and stimulate investment in the national electricity market later in the election campaign.

As part of its energy policy, Labour was also committed to ratifying the Kyoto protocol, to increasing the mandatory renewable energy target, funding renewable technologies and clean coal technologies and introducing a national carbon trading scheme no later than 2010. He said it was preferable to have the trading scheme in place by 2008 to coincide with the start of the Kyoto accounting period.

Mr Fitzgibbon refused to release any details of Labour’s flow through share scheme or its plans for the national electricity market. But he said Labour was not looking at any radical changes in relation to the Australian Energy Regulator model.

Source: North Queensland Newspaper