Labor lashed for caving in to Greens on gas fast-track

Labor has been accused of trading away reforms that would have fixed the ‘broken’ offshore gas approvals system to secure a mega legislative deal with the Greens.

Greens leader Adam Bandt. Picture: NCA NewsWire / Martin Ollman

Labor has been accused of trading away reforms that would have fixed the “broken” offshore gas approvals system to secure a mega legislative deal with the Greens, which guaranteed the passage of two of the government’s gas bills and an ambitious new fuel-efficiency standard.

Members of the crossbench were furious the federal government pushed through three bills with the support of the minor party without allowing further debate, calling the deal “really ridiculous”, while the Greens were under fire from the left for missing an opportunity to hit the oil and gas industry harder.

The Greens on Thursday passed Labor’s PRRT reforms, which will impose a $2.4bn tax impost on the gas industry, and new vehicle efficiency standard through the Senate unamended, after securing a carveout from the government’s offshore gas fast-track bill. The government split the bill, ensuring elements on workers’ safety sailed through parliament while a mechanism that would have allowed the government to define who needed to be consulted with on gas projects was delayed indefinitely.

MST Marquee energy analyst Saul Kavonic warned the decision “imperils” every offshore gas project in Australia including Woodside Energy’s $20bn Browse and Santos $US2bn Dorado developments along with the ability to keep the $100bn-plus Gorgon, Wheatstone and Ichthys LNG projects running.

“Tens of thousands of blue collar jobs in the offshore gas industry will eventually be lost,” Mr Kavonic said. “This move will continue to allow activists to undermine Indigenous institutions and abuse the sacred indigenous connection to country for their own extreme green agenda.”

The Greens argue the mechanism – designed to prevent last-minute legal objections to gas projects – could have allowed ­industry to bypass environmental laws and consultation with ­Indigenous people. “The Greens have killed Labor’s gas fast-track bill,” Greens leader Adam Bandt said. “This is a big blow to the coal and gas corporations, a big win for the climate and First Nations ­voices, and it happened because the Greens have power in ­parliament.”

While the carveout was hailed by climate groups, Australian Energy Producers chief executive Samantha McCulloch said the passage of the PRRT legislation – which would provide a “level of certainty”– shouldn’t come “at the expense of fixing the broken offshore approvals system”.

“Regulatory certainty and timely environmental approvals are needed to address delays facing critical new gas supply projects and to restore investment confidence,” she said. “It is disappointing that the government has deferred the important offshore regulatory reforms, which the Future Gas Strategy released last week identified as an ‘immediate action’.”

Mr Kavonic stressed the need for a fix of the unworkable consultation approvals issue was the most important part of the government’s Future Gas Strategy. “Without it, the strategy is futile.”

Government sources said Labor would not abandon the consultation mechanism for offshore gas projects, but rather would continue to consult and develop it so it could pass through parliament.

The Coalition condemned Labor’s “last-minute deal to backflip on reducing red tape” for the gas industry, saying it would lock in higher taxes, slow approvals and raise costs on the resources industry while giving no regulatory relief to boost investment.

“The Coalition was prepared to support the PRRT in exchange for regulatory relief for streamlined regulatory approvals, increased access to industry, research and development funding, and clarified consultation requirements for offshore oil and gas,” opposition Treasury spokesman Angus Taylor and resources spokeswoman Susan McDonald said. “Labor has made it clear: the Greens are their preferred negotiation partners on tax and on economic management.”

The Greens said any matters relating to the offshore gas approvals process would be considered as part of the third tranche of Labor’s Environment Protection and Biodiversity Conservation Act overhaul.

The Australia Institute, a think tank with links to the Greens, said the offshore gas carveout was necessary but the deal was a “missed opportunity to raise more money from the oil and gas industry, get better fuel efficiency standards and fix Australia’s broken environment laws”.

ACT independent senator David Pocock said he was dissatisfied with the deal, labelling it “really ridiculous” and warning that anyone who voted for the PRRT legislation was “selling Australians short”. Tasmanian senator Jacqui Lambie accused the government of failing to deliver on its promise of greater integrity and took aim at the Greens, saying they had “sold their soul”.