Mr BOWEN (Minister for Competition Policy and Consumer Affairs, and Assistant Treasurer) (4:16 PM) —I move:

The government’s budget condensate measure has the effect of removing the current exemption of condensate from the crude oil excise regime. It applies to condensate produced after midnight Canberra time on 13 May 2008. Earlier today, the Senate passed the condensate measure with the government’s minor amendments. I would like to acknowledge the cooperation of the Greens, Senator Xenophon and Senator Fielding on this measure. I would also like to note again the government’s support for Senator Xenophon’s reference to the Senate Standing Committee on Economics of the North West Shelf project joint marketing arrangements and their impact on competition in the upstream gas market and on prices paid by consumers.

The government’s minor amendments are required to ensure that the measure operates from the announcement date of 13 May 2008. The amendments to the Excise Legislation Amendment (Condensate) Bill 2008 will ensure that a price can be declared for condensate produced in the period following the announcement of the measure and prior to the legislation receiving royal assent. The amendments to the Excise Act 1901 and Petroleum Excise (Prices) Act 1987 will extend interim arrangements in the bills to ensure that condensate may be produced and entered for home consumption lawfully prior to the bills receiving royal assent. These amendments are transitional changes and so do not establish a precedent for future excise measures. Two other technical amendments strengthen the operation of the legislative framework. The measure allows the Australian community to share more fairly in the benefits from allowing the extraction of non-renewable energy resources located in the North West Shelf project area and onshore. As the development of petroleum fuels in this region is now reaching maturity, together with high world oil prices for non-renewable energy resources, there is no longer a need to retain this generous concession. This measure also makes a significant contribution for the government’s fiscal discipline. I commend the amendments to the House.

Question agreed to.