Albanese warns economic shocks will have a ‘long tail’ due to Middle East conflict
Dan Jervis-Bardy
On 7.30 last night, the prime minister, Anthony Albanese, said he would convene national cabinet in coming days to discuss the fuel crisis, warning of a “long tail” to the economic shocks from the Middle East conflict.
The prime minister stressed there was no plans to move to the next stage of the national fuel strategy, which would involve interventions to preserve supply, but said he wanted to update state and territory leaders to ensure that “we all move together as one nation”.
It will be the third meeting of the national cabinet since the US and Israel started bombing Iran on 28 February, sparking a new regional conflict and global energy crisis.
Albanese reiterated his desire for a permanent resolution to the conflict and resumption of normal shipping through the strait of Hormuz.
He said:
No country is immune from the impact of this conflict, even though it’s happening on the other side of the world, it’s having a massive impact on the global economy. It’s having a human impact on people in the region, and that’s why we want to see a resolution.
Albanese on Friday joined a virtual summit of world leaders – chaired by the UK and France – to discuss a plan to fully reopen the strait.
He said another meeting was planned for later this week.
The prime minister would not be drawn on whether the government would consider sending military assets to help secure the shipping lane but said Australia would “play a constructive role” in negotiations “as we always do in international affairs”.
Key events
Tom McIlroy
Wong speaks to counterparts in Pakistan and Lebanon
The foreign minister, Penny Wong, spoke with her counterparts in Pakistan and Lebanon overnight, discussing the Middle East war, peace negotiations with the US and Iran and closure of the strait of Hormuz.
The calls follow similar conversations between Wong and the foreign ministers of Fiji and the Netherlands yesterday.
Wong and Pakistan’s foreign minister, Ishaq Dar, discussed his country’s role in advancing de-escalation and ceasefire efforts, including hosting the first round of negotiations between the US and Iran in Islamabad.
With Lebanon’s foreign minister, Youssef Rajji, Wong spoke about the need for the ceasefire between Israel and Lebanon to hold, for Hezbollah to be disarmed, and Australia’s support for Lebanon and its people.
“We all want the negotiations to be successful, for an end to the conflict and for the strait of Hormuz to reopen so ships can pass safely and critical supplies can get where they’re needed,” Wong said.
I told Lebanon’s foreign minister that Australia welcomed the US-brokered ceasefire agreed by Israel and Lebanon and that we continue to call on all parties to adhere it. We want a negotiated end to the conflict, Lebanon’s sovereignty respected, and Hezbollah disarmed.
Even with the ceasefire, we know global supply pressures will continue for some time to come.
That’s why the Albanese government is working with regional partners to secure petrol, diesel and fertiliser supplies so that we can shield Australia from the worst impacts of the conflict.
Shadow minister says Coalition’s new immigration policy doesn’t make it a ‘fringe party’
Andrew Bragg, the shadow minister for housing, said the Coalition’s new immigration policy did not make the opposition a “fringe party”.
Bragg is set to give a speech today, where he will reportedly link low levels of new housing with high migration, the Sydney Morning Herald reports. He was asked about his own comments in November where he said at the time linking the housing crisis to migration was “morally wrong”, and what had changed. He told RN Breakfast today:
Nothing’s changed. As I would have said in November to you, it is an input on the demand side that is migration. And migration has been too high.
Bragg went on to say any potential changes to the capital gains tax discount or negative gearing were a “gimmick” which would not solve any issues with housing supply.
Government discussing ‘range of opportunities’ to boost fuel security: PM
Dan Jervis-Bardy
Back to the prime minister, who said last night the government was considering options to boost domestic fuel refining capacity as the Middle East conflict exposes Australia’s vulnerability to international supply chain shocks, but without specifying what the options might be.
Australia imports up to 90% of refined fuel products and has just two operating refineries: Viva Energy’s refinery in Geelong – which caught fire last week – and the Ampol Lytton refinery in Brisbane.
Asked if the government was weighing options to increase on-shore refining capacity, Albanese told 7.30:
We will look at the full range of opportunities which are there. We’re very open to pursuing those. We’re engaging with the private sector in particular, and we’ll engage, of course, with state and territory colleagues.
Ed Husic say next budget should have 25% tax on gas exports after companies given ‘obscenely sweet deal’ for too long
Labor MP Ed Husic said the government should impose a 25% tax on gas exports as part of the upcoming budget, adding big energy companies had had a “sweet deal” for much too long.
Husic spoke to the ABC this morning:
People think that a lot of these multinational gas companies have had an obscenely sweet deal for way too long and the country has been the poorer for it. And the idea that we would get a better deal on our gas is uniting people across the political spectrum …
If it doesn’t happen in this budget, it’s not a lost opportunity, it’s a missed one.
Husic went on to say that the issue speaks to the average person:
Average Australians are right when they say, we’ve got so much of this resource and yet we’re being told we’re running out. We’re not. We just export so much of it.
‘We want to see the oil flow,’ Penny Wong adds
Penny Wong also spoke on Sky News about the fuel crisis and the Middle East, saying Australia wanted a negotiated settlement to the war.
Speaking to host Andrew Clennell, she said the government was continuing to work to obtain fuel supplies.
Wong said:
We’re calling for a de-escalation along with the rest of the world and along with the United States seeking a negotiated outcome. We want to see the strait open, we want to see oil flow and we want to see relief for Australians at the bowser.
She was also asked about Donald Trump’s attack on Australia last week for allegedly not doing enough to help the US in the Middle East.
She said there had been no request from the US about helping to keep the strait of Hormuz open or blockaded but said that there had been a request for assistance of the defence of the Gulf countries.
Albanese warns economic shocks will have a ‘long tail’ due to Middle East conflict
Dan Jervis-Bardy
On 7.30 last night, the prime minister, Anthony Albanese, said he would convene national cabinet in coming days to discuss the fuel crisis, warning of a “long tail” to the economic shocks from the Middle East conflict.
The prime minister stressed there was no plans to move to the next stage of the national fuel strategy, which would involve interventions to preserve supply, but said he wanted to update state and territory leaders to ensure that “we all move together as one nation”.
It will be the third meeting of the national cabinet since the US and Israel started bombing Iran on 28 February, sparking a new regional conflict and global energy crisis.
Albanese reiterated his desire for a permanent resolution to the conflict and resumption of normal shipping through the strait of Hormuz.
He said:
No country is immune from the impact of this conflict, even though it’s happening on the other side of the world, it’s having a massive impact on the global economy. It’s having a human impact on people in the region, and that’s why we want to see a resolution.
Albanese on Friday joined a virtual summit of world leaders – chaired by the UK and France – to discuss a plan to fully reopen the strait.
He said another meeting was planned for later this week.
The prime minister would not be drawn on whether the government would consider sending military assets to help secure the shipping lane but said Australia would “play a constructive role” in negotiations “as we always do in international affairs”.
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories. Nick Visser will take the reins shortly.
Anthony Albanese will convene the national cabinet again in coming days to discuss the fuel crisis, he told the ABC’s 7.30 program last night, as the government considers options to boost domestic fuel refining capacity.
Penny Wong has also been speaking about the fuel crisis and the Middle East on Sky News, where she said Australia wanted a negotiated settlement to the war.
