: Good morning. This morning, the National Cabinet has met for another important update on our preparedness for the National Fuel Security Plan. It is important to recognise the fact that the longer that the Strait of Hormuz is essentially shut, even in spite of the ceasefire being in place for four weeks now, the longer this conflict goes, the greater the impact will be. It's as simple as that. Our number one priority remains shielding Australians from the worst effects of this crisis. And we're working across with state and territory governments to ensure that the national interest is looked after. That is why as well, my Government has cut the tax on fuel in half and we've worked relentlessly to secure our fuel supply lines. So far, we are faring well, and Australia remains at level two of the plan, and we want to stay at level two for as long as possible.
This is in part due to the work of the National Fuel Security Taskforce that we established, working with state and territory governments to deliver. But it's also in part because of the work that Australians are doing. As our campaign says, every little bit helps. And the demand spike that we saw prior to Easter has stopped in terms of the behaviour of people turning up at petrol stations and filling up jerry cans and filling up their garages essentially with fuel that we warned was not only not in the national interest, it was actually dangerous. It was very much different from the behaviour that we saw during COVID of people filling up their garages with toilet paper. Fuel is different. It is dangerous. And we again thank people for overwhelmingly doing the right thing.
People are taking voluntary action as well. More people are catching public transport, more people are car sharing, more people are working from home where it is in the interests of employees and employers going forward. And we're working as well across jurisdictions to make sure that we continue to create circumstances where, as much as possible, we want actions to be voluntary going forward as well. The fact that more ships arrived in Australia during April than during March, February or January, I think just underlines the work that we've done securing supplies from our traditional partners, but also the expansion in supplies of fuel deliveries from places like the Netherlands, South America, North America, Algeria as well. And the work that we're doing with our traditional partners in this region has been very important.
Today, I am also announcing that the Federal Budget next week will include an Australian fuel security and resilience package. This is aimed at making sure that Australians can have more confidence in protecting our energy sovereignty, not just during this crisis, but going forward as well, protecting our nation's energy interests. The package will provide more than $10 billion to secure Australia's near-term fuel and fertiliser security, establish a permanent government-owned Australian fuel security reserve of around a billion litres, and lift the Minimum Stockholding Obligation by around 10 days for every type of fuel. This will support an overall expansion of Australia's onshore fuel reserves to ensure at least 50 days of fuel supply and storage of diesel and aviation fuel.
As part of our plan to deliver energy sovereignty, our Australian fuel security and resilience package will comprise the following elements: $7.5 billion for the establishment of a fuel and fertiliser security facility to increase supply and storage of fuel and fertiliser by providing financial support including loans, equity guarantees, insurance and price support. This is the work that's taking place with Export Finance Australia that has enabled us to secure those additional cargoes, particularly of diesel and jet fuel, that has very much protected Australia's interests.
Secondly, $3.2 billion to establish a government-owned Australian fuel security reserve of around a billion litres to increase long-term diesel and aviation fuel supply and storage in combination with an increase to the Minimum Stockholding Obligation to increase Australia's critical fuel reserves to 50 days. Now, our fuel security reserve will focus on regional stock outs and supply constraints for essential users in the event of another supply crisis.
And lastly, the fourth element is $10 million to support feasibility studies into newer, expanded fuel refining capabilities to be co-funded with state and territory jurisdictions. As a matter of courtesy, I went through these measures at the National Cabinet meeting that met this morning. We know there's at least one of a serious proposal that will receive the support of a state government and Federal Government to examine the possibility of additional refining capability going forward as well. And we want to make sure that there's buy-in, which is why any proposals will be jointly funded by state and territory governments as well as the Commonwealth. Now, we'll consult on the implementation of the fuel reserve to underwrite or purchase fuel support, storage and trade stocks as needed to ensure our fuel security during severe or prolonged fuel supply disruption.
Today's meeting was very constructive. It followed yet another meeting of our National Security Committee meeting today. We're receiving updates. I think it is obvious to say that we live in very volatile times and there is uncertainty about events in the Middle East and of course therefore uncertainty about the implications for the impact here in Australia. But what Australians can be certain of is that we are throwing everything at this to make a difference to protect the interests of Australians. I'd ask the Minister to make some comments and then we're happy to take some questions.
CHRIS BOWEN, MINISTER FOR ENERGY AND CLIMATE CHANGE: Thanks very much, Prime Minister. Well, since the 28th of February this Government has been focused entirely on getting Australia through what the International Energy Agency has called the worst international fuel crisis in history. And in fact, they've said it's as bad as all the other crises put together. And as a result of that work the Government's been doing with industry, as the Prime Minister has said, we're in a position to say that in April we received 92 shiploads of fuel, which is the highest number this year. It compares with less than 80 in other months, in some of the months. We received 92 in April. And that means we have more fuel in Australia today than we did when the bombing of Iran began. And that's no small thing. That's government and industry working together.
But we've also been looking at what we need to do to better prefer prepare Australia for future shocks. We know that the international environment is getting more unstable, not less. And so, we have to look at what we have done in this crisis and see what we can do to build Australia to be better prepared even for the next international crisis, whenever it might occur. Hence the announcement the Prime Minister is making today of a very big investment, a big investment in a government-owned fuel reserve. At the moment we have requirements, the Minimum Stock Obligation on private sector companies which we are increasing, requiring them to hold more fuel in Australia. But we're not just doing that. Australia is actually in a minority of countries in the International Energy Agency who don't have a government-owned fuel reserve. We will now have a government-owned fuel reserve of around a billion litres to add to those minimum stocks that the private sector must hold, particularly focused on diesel and jet fuel, where we do need to ensure greater domestic capacity and supply in the worst of circumstances. This is a big change in our approach as a country and a good one, building on the increase in the Minimum Stock Obligations that we're requiring the private sector to hold 10 days and adding more so that we would have 50 days' worth of diesel and 50 days' worth of changes jet fuel, which is an appropriate level.
In addition, we're also continuing to work to help Australians diversify their own choices. Yesterday, the Treasurer and I announced our ongoing support for EVs through the EV tax discount. Five hundred and fifteen Australians a day bought an EV in April. That compares to 29 a day when we came to office. And when you look at the fuel use that's been avoided by our electricity tax discount so far, of the cars that have been bought at that discount in its first years of operation, they will avoid 1 billion litres worth of fuel use over their lifetime. Now, EVs aren't for everyone, but for those who choose to take them up, it's making more fuel available for the rest of the economy, and so we'll continue that support as well. This is a good announcement that the Prime Minister has made today. It will be a centrepiece of next week's Budget and it best prepares Australia for whatever might come in the years ahead.
JOURNALIST: Prime Minister, why did you rule out negative gearing when it is now on the cards? And did you know it was a possibility when you made those remarks?
PRIME MINISTER: Look, we will see the Budget next Tuesday. You'll have every opportunity to ask questions based upon what we actually do rather than media speculation.
JOURNALIST: Prime Minister, Michele Bullock has warned governments that handouts to households will not dampen demand and will make tackling inflation harder. Do you acknowledge the Governor's warnings on handouts not helping the inflation spike?
PRIME MINISTER: The Governor made it clear yesterday of the impact that the war in the Middle East is having. We as well are very conscious about the need for a responsible Budget, as we always have been. My Government has produced the only budget surpluses that have been seen since I've been answering questions from you over the last decade and a half. So, we did that not just once, but twice, and we've reduced the deficit and you'll see in next Tuesday's Budget a range of savings, and you'll be able to then ask questions about that detail.
JOURNALIST: Prime Minister, 13 months ago, you ruled out changes to negative gearing and Capital Gains Tax for what you said was the 50th time. Does that mean that you lied 50 times to voters? And can you at least be honest to the Australian people that you're going back on a promise that you made, considering that even now you're saying, well, you're not confirming that these changes will be in the Budget?
PRIME MINISTER: Well, the Budget will be on Tuesday and you'll have every opportunity -
JOURNALIST: Did you lie, Prime Minister?
PRIME MINISTER: You'll have every opportunity. Your publication has done things - I have before, and made those comments, and I've seen similar things. You know, people will have the opportunity to examine the Budget going forward with all of it there. I can confirm that I maintain the position that the key to housing policy is supply.
JOURNALIST: But PM, do you maintain the position that you ruled out that you made at the election, in the election campaign, ruling out changes to negative gearing and Capital Gains Tax concessions?
PRIME MINISTER: I maintain that there will be a Budget next Tuesday. You will have the opportunity to examine the Budget. And I note that over the period of time I have seen a number of contradictory statements suggesting what is in the Budget. It will be handed down on Tuesday. What we are doing in advance is putting forward a pretty serious thing that's front and centre of where your readers are interested in today, which is fuel security.
JOURNALIST: Prime Minister, I think voters would appreciate you just being honest and acknowledging that you're going back on -
PRIME MINISTER: Well, you'll wait and see on Tuesday -
JOURNALIST: That you made before the election.
PRIME MINISTER: You'll wait and see on Tuesday what is in the Budget. And you'll have every opportunity, every opportunity - I make myself available. I'll do press conferences every day, just about. You'll have every opportunity to ask us questions. It will be a responsible Budget that will be consistent with Labor values.
JOURNALIST: Prime Minister, I'm just wondering if we could get, first of all, a comment from you just in regards to the cohort that's returning from Syria. And then secondly, there are reports that have been around that has basically assumed that the cost of monitoring these individuals is about $2 million per person. Based on the government's understanding, do you have a general idea of how much it does cost to monitor these individuals potentially for the rest of their lives?
PRIME MINISTER: The Minister for Home Affairs has come confirmed that 13 members of the Australian cohort in Syria have made plans to travel to Australia. This consists of four women and nine children. The government has not and will not provide any assistance to this group. These are people who have made what is a horrific choice to join a dangerous terrorist organisation and to place their children in an extraordinary situation. As we've said many times, any members of this cohort who have committed crimes can expect to face the full force of the law, and that will occur.
JOURNALIST: Going back to Budget again, on any changes to the Capital Gains Tax discount, leading asset manager Geoff Wilson has said that it is -
PRIME MINISTER: An unbiased commentator.
JOURNALIST: An intergenerational betrayal, not equity. I know you're pitching the Budget as intergenerational equity. How would you respond to leading asset managers' comments like that?
PRIME MINISTER: Well, tell me a leading asset manager and I'll respond. Geoff Wilson has been a political participant for some period of time. Everyone knows that that's the case. So, I expect no different from Tony Abbott opposing whatever's in the Budget, or John Howard will oppose whatever is in the Budget, and I'm sure that that will receive publicity. Geoff Wilson has opposed everything my Government has done.
JOURNALIST: Prime Minister, two questions on fuel. The measures you announced today, do you expect that to take the pressure off Australians? And are you saying that they can increase their fuel consumption and not take public transport?
PRIME MINISTER: No, we want people to continue to do what they can to conserve fuel. We've made that very clear. We are at level two, which asks for voluntary action by Australians. And overwhelmingly, that is what Australians are doing. We, I think it is fair to say that if you look at some of the commentary, and this is the difficulty with answering hypotheticals, if you look at some of the commentary that was there a couple of months ago in March about fuel and go back and read that commentary now, you'd say we've done much better than was anticipated. But it is also just a fact that these times are extraordinarily volatile. This is the biggest oil crisis that the world has ever seen, with an impact in every country, but in particular in our region because of the connections between the supply of fuel through the Gulf to refineries in Asia. So, this is having a major impact on inflation right around the world. And therefore we are not complacent about this. We want people to do what they can to take action to conserve fuel. As the advertisement says, 'Every Little Bit Helps'.
JOURNALIST: And where do you see the fuel, the government-owned fuel security terminal being? Have you got any locations?
MINISTER BOWEN: The government-owned reserve is very important. As I said, we're a minority around the world, 22 out of the 32 members of the International Energy Agency have a national government owned fuel reserve. What we'll do is then work with the sector to assess how we can best add to their own holdings. So, they are required to hold fuel. They're required to hold more fuel under the rules that we're bringing into place. We'll work with them to assess where our reserves can best be held. They will have facilities where we can hold it, and they will also have ideas about how it can best add to theirs. That process begins today. I've already spoken to the fuel company chief executives about that over the course of today, and that will continue. This is very important in terms of - if you think about the early days of this situation where we had regional shortages led by, caused by massive spikes in demand. I was ringing fuel chief executives and asking them to send fuel to those areas. A shortage - which they did to the best of their ability. But if we had a government-owned reserve which, at the direction of the government, could be sent to those areas of shortage like we had in regional New South Wales at the time, and you know, areas of Western Australia and across the board in regional areas, that would have been very handy and that's what we're building for the future.
JOURNALIST: On the ISIS families, the Syrian Government turned them back when you said you didn't want them here, what has changed in that intervening period? And do you expect other Australian families will follow them now that they're shutting the camps down?
PRIME MINISTER: We have not provided any assistance nor were we involved in those actions of the Syrian Government. We've provided no assistance for these people. We're not repatriating them.
JOURNALIST: Can I just ask a follow up on the fuel reserves. So, you've announced this package. Will it be a new levy or tax to pay for it, or are you getting the money out of consolidated revenue?
PRIME MINISTER: No, it's in the Budget. It'll be in the Budget on Tuesday and will be accounted for like other measures. I encourage everyone to turn up next Tuesday night, 7:30pm, or, if you have the approvals, be in the lockup and you'll get to read all of the Budget details. It's a Budget which will be consistent with Labor values. It's a Budget that will have significant savings. It's a responsible Budget, but it's one as well that doesn't leave people behind. Thanks very much.
