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Hansard
- Start of Business
- PETITIONS
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- QUESTION
- CORRECTION TO HANSARD
- REGISTERED MEDICAL AND HOSPITAL BENEFITS ORGANISATIONS
- MEDICAL RESEARCH ENDOWMENT ACT
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EXCISE AMENDMENT BILL 1978
- Second Reading
- Procedural Text
- TATE, Michael
- CHAIRMAN, The
- WALSH, Peter
- DURACK, Peter
- TATE, Michael
- DURACK, Peter
- WALSH, Peter
- DURACK, Peter
- WALSH, Peter
- DURACK, Peter
- WALSH, Peter
- GEORGES, George
- YOUNG, Harold
- DURACK, Peter
- WALSH, Peter
- DURACK, Peter
- GEORGES, George
- DURACK, Peter
- MCLAREN, Geoffrey
- DURACK, Peter
- GEORGES, George
- MCLAREN, Geoffrey
- DURACK, Peter
- WALSH, Peter
- YOUNG, Harold
- DURACK, Peter
- Third Reading
- SENATE STANDING COMMITTEE ON CONSTITUTIONAL AND LEGAL AFFAIRS
- PIG SLAUGHTER LEVY AMENDMENT BILL 1978
- QUESTION
- SENATE STANDING COMMITTEE ON CONSTITUTIONAL AND LEGAL AFFAIRS
- SENATE STANDING COMMITTEE ON CONSTITUTIONAL AND LEGAL AFFAIRS
- SENATE STANDING COMMITTEE ON SCIENCE AND THE ENVIRONMENT
- SENATE STANDING COMMITTEE ON SCIENCE AND THE ENVIRONMENT
- QUESTION
- QUESTION
- STATES GRANTS (HOME CARE) AMENDMENT BILL 1978
- HOMELESS PERSONS ASSISTANCE AMENDMENT BILL 1978
- NITROGENOUS FERTILIZERS SUBSIDY AMENDMENT BILL 1978
- SENATE STANDING COMMITTEE ON FINANCE AND GOVERNMENT OPERATIONS
- SENATE STANDING COMMITTEE ON FINANCE AND GOVERNMENT OPERATIONS
- SENATE STANDING COMMITTEE ON NATIONAL RESOURCES
- SENATE STANDING COMMITTEE ON SOCIAL WELFARE
- ADJOURNMENT
- Adjournment
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ANSWERS TO QUESTIONS
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Aviation: MountIsa toTownsville (Question No. 593)
(COLSTON, Malcolm, CHANEY, Fred) -
Darwin: Vietnamese Refugees (Question No. 595)
(KILGARIFF, Bernard, CHANEY, Fred) -
Unemployment Benefit: Juniors (Question No. 615)
(BUTTON, John, GUILFOYLE, Margaret) -
Printing Orders Executed Overseas (Question No. 617)
(BUTTON, John, CHANEY, Fred) -
Social Service Fringe Benefit Payments (Question No. 628)
(GRIMES, Don, GUILFOYLE, Margaret) -
Department of Business and Consumer Affairs: Computer (Question No. 676)
(BUTTON, John, PUPLICK, Chris, DURACK, Peter, CARRICK, John) -
Wildlife Habitats (Question No. 608)
(MULVIHILL, James, PUPLICK, Chris, CARRICK, John)
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Aviation: MountIsa toTownsville (Question No. 593)
Senator DURACK (Western AustraliaAttorneyGeneral)
- Two matters have been raised by Senator Walsh and Senator Tate. Firstly, on the question raised by Senator Walsh, the Government is operating not on what is called the posted price but on the actual State sales price. I think that what Senator Walsh has said is to this extent correct, in that the posted price is the price that is determined by a particular government as the price at which royalty is payable. The Government is basing its import parity price on the State sales price which presumably is the true market price. For instance, in relation to Arabian light oil, which is the basis of the formula, the posted price is $ US 13. 66 per barrel whereas the State sales price, which is the one on which we are basing the components, is $US 12.70 per barrel f.o.b. I think that is only confirming what I have already said. We are dealing with the market price.
The various components and the method by which the import parity price is calculated are pretty complicated formulae and ones with which I am not fully conversant. The details have been included in a statement made on 4 July 1978 by the Minister for National Development (Mr Newman) who fixes the price. The heading of the statement is 'Calculation of the Import Parity Price of Indigenous Crude Oil '. I think it would be more informative for the Committee if I were to incorporate the statement in Hansard. Those honourable senators who are not familiar with the method would then have the full details available. I seek leave to incorporate it in Hansard.
Leave granted.
The statement read as follows-
CALCULATION OF THE IMPORT PARITY PRICE OF INDIGENOUS CRUDE OIL
The Minister for National Development, Mr Kevin Newman, announced today the details of the formula to be used in future in determining the import parity price for indigenous crude oil.
The Minister referred to the statement made by the Deputy Prime Minister (Mr Anthony) on 16 August 1977 when announcing the Government's new crude oil pricing policy. At that time Mr Anthony said the import parity price would be set every 6 months by the Commonwealth Government on the basis of Arabian Light oil at the nearest refinery port, adjusted to allow for an appropriate quality differential, and that discussions would be held with the oil industry to determine the precise basis on which the calculation would be made. The Government had already taken the decision to move progressively to import parity pricing for all indigenous crude oil and producers are currently receiving the import parity price for at least some of their production.
Mr Newmansaid that discussions with both oil producers and refiner/marketers had been held and that all their views had been weighed in coming to a decision. The Minister went on to say that he had now decided on the formula that would be used to calculate the import parity price and the principal components to be used in the formula will be as follows:
Marker crude
Arabian Light oil at the official selling price in the Persian Gulf. The rate of exchange to Australian dollars will be the Reserve Bank mid-rate.
International freight calculated on the cost of shipping from the Persian Gulf to the nearest refinery port to the producing field in the largest tanker that can enter the port.
Wharfage. Insurance and Loss
Quality differential an allowance will be made for the comparative quality of each crude with respect to Arabian Light as a measure of its ability to meet the Australian market demand.
Compensation for credit terms an allowance will be made for the difference between credit terms offered by local producers and those offered internationally.
Domestic freight a deduction will be made for the average cost of domestic freight where the nearest refiners' port 's unable to absorb all the production from a particular field.
In addition to the above a special freight allowance will be given to the Moonie producers to cover the cost of actual crude deliveries to the small inland refinery situated at Roma, Queensland.
The Minister indicated that the new import parity price to be effective from 1 July 1978 will be announced in the near future when the value of all the elements is known. In future the import parity price will be announced as soon after the first day of the new period as practicable.
CANBERRA
4 July 1978
