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Pauline Hanson announces Norway-inspired gas policy as she decries 25% export tax as ‘economic vandalism’
TL;DR
One Nation proposes a Norway-inspired gas policy to replace the offshore gas profits tax and acquire 30% equity in new ventures. Pauline Hanson criticizes the 25% export tax as 'economic vandalism' and highlights public dissatisfaction with current returns from the oil and gas sector.
Key points
- One Nation proposes a Norway-inspired gas policy.
- The policy includes acquiring 30% equity in new gas ventures.
- Pauline Hanson criticizes the 25% export tax as 'economic vandalism'.
- There is growing public dissatisfaction with returns from the gas sector.
- The proposal has faced criticism from government and industry.
One Nation has vowed to replace the contentious offshore gas profits tax and acquire 30% equity stakes in new ventures under an interventionist policy designed to extract “vastly greater returns” for Australian taxpayers from the resource.
The proposal for the commonwealth to co-own gas projects drew a mix of criticism and cynicism from the government, industry and the Coalition, which accused One Nation of importing ideas from Venezuela.
Pauline Hanson used a speech to a major gas industry conference in Adelaide on Thursday to detail a policy first flagged on the night of One Nation’s win in the Farrer byelection.
Hanson said the public was “rightly unhappy” and “public unrest is building” about the return to taxpayers from Australian oil and gas sector, voicing the same concerns as the broad coalition of groups campaigning to replace the petroleum resource rent tax (PRRT) with a 25% export levy.
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The One Nation leader criticised a 25% export tax as “economism vandalism” despite some opinion polls suggesting supporters of her rightwing populist party back the idea.
Instead, she proposed abolishing the PRRT – which she described as a “failure” – and introducing a royalty regime for new projects.
Appearing in a room of gas industry executives in Adelaide, Hanson also announced a Norway-inspired proposal to acquire equity stakes in new ventures and stash the profits in a sovereign wealth fund.
Under the proposal, the government would offer companies a 30% rebate on the cost of exploration in commonwealth waters in exchange for taking an equity stake of up to 30% in the operation.
The arrangement would give taxpayers a share in potential profits but also expose them to financial risks, which could last decades given One Nation has proposed co-ownership would start at exploration and continue until a project is decommissioned.
It typically takes more than a decade for a project to progress from exploration to production, meaning taxpayers would not get an immediate return.
The government’s stake would be overseen by a new commonwealth investment body.
One Nation has just two lower seats in federal parliament but has been surging in the opinion polls, resulting in more attention and scrutiny of its policies.
Speaking before Hanson’s address, Liberal frontbencher James Paterson said he was sceptical about government-owned oil and gas companies.
“I mean, that is a policy borrowed from Venezuela and Hugo Chávez, not Australia,” Paterson told Sky News.
Q&A
What is One Nation's proposed gas policy in Australia?
One Nation's proposed gas policy aims to replace the offshore gas profits tax and acquire 30% equity stakes in new gas ventures.
Why does Pauline Hanson oppose the 25% export tax on gas?
Pauline Hanson opposes the 25% export tax, calling it 'economic vandalism' and arguing it negatively impacts returns for Australian taxpayers.
What are the criticisms of One Nation's gas policy proposal?
Critics, including the government and industry, have accused One Nation of importing ideas from Venezuela and expressed skepticism about the feasibility of their policy.
How does public sentiment relate to the gas sector in Australia?
Pauline Hanson noted that public unrest is growing regarding the returns from the Australian oil and gas sector, reflecting widespread dissatisfaction among taxpayers.
