Trucking industry bodies as one with proponents seeking supply risk action
The fuel security issue’s time in the sun continues in the federal election lead-up, with the Australian Trucking Association (ATA) backing Labor’s national reserve plan.
The ATA views the opposition party’s commitment to boost Australia’s fuel security, if in government, as helping protect the economy from international risks and uncertainty.
“Fuel security is critical to trucking and keeping the Australian economy moving,” chair Geoff Crouch says.
“Over 75 per cent of non-bulk domestic freight is carried by road, making fuel security vital to local supply chains and the ability of businesses and consumers to buy and sell goods.
“Last year, the International Energy Agency [IEA] reported that Australia is vulnerable to unexpected changes in regional demand and disruptions in supply.
“The IEA reported that our stocks are at an all-time low, do not meet our international obligations and limit Australia’s options for addressing a disruption in supply.”
The call comes as member organisation the National Road Transport Association (NatRoad) called for strong action, given how acutely exposed trucking is in the event of any supply disruption.
Read NatRoad’s position on the national fuel supply security issue in 2014, here
The ATA views positively the plan for detailed consultation around the design of a government-owned National Fuel Reserve to boost Australia’s fuel stocks of emergency reserves, if Labor can form government.
“The ATA has been an advocate for returning Australia’s stock levels to international compliance, and we welcome Labor’s commitment,” Crouch says.
“In the United States, Japan and Germany the government holds enough stock to meet their international stockholding obligation, and government action would be a big boost to securing Australia’s fuel security.”
Crouch says the fuel emergency legislation also needed to be reviewed.
“The ATA has long argued that the fuel emergency legislation and guidelines should be reviewed to ensure that trucking businesses cannot be sued for prioritising customers in line with government policy during a fuel security emergency,” he adds.
Motoring organisation the Australian Automobile Association (AAA) and the Maritime Union of Australia (MUA) have also backed the pledge.
Labor argues Australia has just 19 days of automotive gasoline supply, 23 days of jet fuel supply, and 22 days of diesel supply.
It says the situation leaves the nation vulnerable to risks in the international fuel supply chain and a reserve would be a protection against an international supply shock.
“National security isn’t just about our defence forces, or our security agencies,” Labor leader Bill Shorten says.
“National security means investing in our long-term fuel security.”
The federal government has a fuel reserves review underway but it is yet to report but the present government has previously downplayed the issue saying international supply chains were strong enough to deflect risks.
Present federal energy minister Angus Taylor reportedly claims a strategic reserve could cost $10-12 million to set up.