Senator WOODLEY —My question is addressed to the Minister for Industry, Science and Resources, Senator Minchin. I draw the minister's attention to the recently formulated oil code and I ask, first: is the minister aware of media reports that major oil companies were refusing to supply petrol stations if fuel was sold at a lower than recommended price, according to information gathered by a New South Wales government hotline? Is the minister also aware that in New South Wales callers to the petrol hotline claimed service station managers who lowered prices were subjected to threats and intimidation, and that they told of across-the-board increases on public holidays and pension days in certain areas and of bowser prices differing from the posted prices on the signboard? Does this mean that the oil code is not working?

Senator MINCHIN (Industry, Science and Resources) —For the benefit of Senator Woodley, the oil code is a matter of some discussion between the parties and something we hope to finalise in the near future so that we can get agreement on the oil code in order that we can repeal the sites act and the franchise act. I am not sure what on earth Senator Woodley is talking about. The oil code is a government proposal which would be put into the Trade Practices Act and have the effect of being the mechanism by which the Trade Practices Act would protect small service station owners and ensure fair trade practices in the absence of the sites act and the franchise act. It is part of the government's proposals for reform of the petrol industry—an industry that the Industry Commission and the ACCC have agreed desperately needs reform. So I am not sure where Senator Woodley is coming from.

What I do know is that the New South Wales Labor government's responsible minister has been utterly irresponsible in his attempts to play politics with the fact that the price of crude oil has doubled in the last six months, with consequences, naturally, for the prices of retail petrol. The New South Wales government minister has been roundly criticised by the service station industry itself for his cheap politicking on this issue, which has resulted in what I gather is now called `fuel rage' or something of that kind, because of the hysteria that he has created and the animosity he has single-handedly created towards the workers, the employees, at service stations. I would certainly take this opportunity to call on the New South Wales government, and in particular its fair trading minister, to behave much more responsibly on this very difficult issue in view of the fact that petrol station prices have obviously gone up because you cannot have a situation where crude oil prices double in six months and not have some consequences on petrol prices.

Senator WOODLEY —Madam President, I ask a supplementary question. I thank the minister for his answer. Minister, I was aware of the whole debate, and particularly of the fact that the oil code and the legislation are yet to be debated in this place. I am saying to you that it seems that already there is a threat to the oil code because of the actions of major oil companies. Are you aware of a serious dispute, for instance, between the Motor Traders Association of Australia member Mr John Hinspeter and Caltex and the claim that this suggests that Caltex itself has no intention of observing the oil code? Do you believe the oil code will work to protect consumers and small petrol retailers?

Senator MINCHIN (Industry, Science and Resources) —I am very confident that, if we can get agreement in relation to the oil code, it will work because it will be law. It will be part of the Trade Practices Act. It will be legally binding and will produce a much more sensible outcome and a much better petrol industry that will benefit consumers, the industry and service station proprietors. I think we all have to wake up to the difficulties in this industry. We do have the major oil companies suffering very low profitability and having difficulties with the refining industry. We have imports coming in from Singapore. We have a number of companies retailing petrol that are not subject to the Petroleum Retail Marketing Sites Act or the Petroleum Retail Marketing Franchise Act. Inquiry after inquiry has agreed that there has to be reform of this industry and we look to the Senate to support that reform.

Senator Hill —Madam President, I ask that further questions be placed on the Notice Paper .