Second Reading Speech
Mr KERIN (Minister for Primary Industries and Energy)I move:
That this bill be now read a second time.
Since the deregulation of the industry at the beginning of 1988, oil producers have proven to be quick to develop new markets and innovative marketing techniques. In this way they have been able to maximise the value of their output, both to themselves and the nation. However, as a result of these developments certain types of crude oil transactions have occurred which are not strictly covered by the Petroleum Excise (Prices) Act 1987, since these transactions were not envisaged when the Act was passed.
The principal purpose of this Bill, which is largely of a technical nature, is to amend the 1987 Act to provide the Minister with additional powers to fix, for the purpose of excise determination, prices for certain types of crude oil transactions. Such transactions include sales where a quantity of crude oil is disposed of either by exchange, having the oil converted to products which are then sold or by any means other than direct sale - for example, by barter.
Commonwealth excise on crude oil production is estimated at $1.4 billion in 1988-89. This Bill is essential to ensure that excise on the transactions described is assessed on a fair and accurate basis. In addition, the Bill will allow crude oil producers the greatest possible flexibility in the use of marketing techniques. I present the explanatory memorandum to this Bill, and commend the Bill to honourable members.
Debate (on motion by Mr Cadman) adjourned.