Mr TRUSS (Customs and Consumer Affairs) (4:24 PM) —I move:

That the amendment be agreed to.

The government amendment to the Primary Industries and Energy Legislation Amendment Bill (No. 3) 1997 , which covered a range of issues, relates to the Petroleum (Submerged Lands) Act 1967. This amendment provides greater certainty for companies planning major offshore liquefied natural gas projects.

The House would be aware that LNG gas supply contracts are negotiated for very long terms. There are several multibillion dollar LNG export projects under consideration at the moment. The amendment will enact a new production licence system which will guarantee the security of the licences for the full term of these contracts. The amendment replaces the existing 21-year licence period with an indefinite period, subject to the qualification that production areas may revert to the Commonwealth if production ceases for five years.

The elimination of periodic licence renewals is likely to result in reduced administrative costs for both government and industry. The Commonwealth will continue to collect the same level of annual fees—$18,000 per block—under the new system. The amendment is supported by the states, the Northern Territory and the petroleum industry. I commend the amendment to the House.