Radio Interview, 3AW Drive

SUBJECTS: Prime Minister’s National Address; Fuel Supply; Middle East Conflict; US Alliance. 

JACQUI FELGATE, HOST: On the line now is Richard Marles, Deputy Prime Minister and Minister for Defence. Really appreciate your time on a very busy day Richard. 

RICHARD MARLES, DEPUTY PRIME MINISTER: Good afternoon, Jacqui, how are you?

FELGATE: I'm well, thank you. So firstly, what was your personal opinion of the address last night and I guess the blowback today from many sections of the community saying they thought it was a waste of time?

MARLES: Well, I mean, obviously, I think it was a really important speech that the Prime Minister made. I mean, Australians right now are understandably feeling anxious. We've got the biggest shock to petrol and diesel prices that we've ever seen, I mean, literally ever. And there is a sense of uncertainty, which is real, about what the future holds. Because we don't know how long things are going to play out in the Middle East. And in that context, I think having the Prime Minister speak directly to the Australian people was really important, both about what is happening, what we might expect going forward, but importantly what the Government is doing now and what Australians can do. And we have detailed a whole range of measures in terms of how we are securing supply, how we are trying to assist in decreasing the price of petrol by cutting the fuel excise, and we've seen today a further announcement of the states coming on board in relation to removing some of the GST. But also speaking about how Australians can act about this, particularly over the Easter weekend, which is go about your business, make the trips that you are going to make. But as we proceed over the coming weeks, if you've got options to use public transport, that's a good idea. Some people have those options, others don't. But where people can that will make a difference and we're encouraging people to do that.

FELGATE: Is our fuel supply currently secure?

MARLES: Well, our fuel supply is secure now. I mean, global fuel supply chains are being disrupted. Everyone can see that. Exactly what that means for us is a function of how long this continues and we don't know the answer to that question. We know already that there is a significant impact and that's why we've taken steps that we have in terms of releasing a significant portion of the national stockpile; that's why we are underwriting cargos of fuel coming into Australia; it's why we're relaxing standards in respect of diesel and petrol to get more of that into the system; it’s why we're supporting the refineries, including the one in Geelong, to be able to produce more. So, we are taking a whole lot of steps around supply. What it means in the future in terms of demand measures – and these are the things that people are talking about, whatever options might be available – in the National Fuel Security Plan that was announced with the state premiers on Monday, we tried to set out a series of stages, if you like, and we articulated as being at stage two now, out of four stages. Four would be a situation when more needs to be done. We are not at that point yet. We may never get there, but we might, which is why we've articulated it. And as we work through this, we will look at what other demand measures need to be put in place if they do. But right now– and I guess what that does is give people a sense that, you know, we are thinking through the various scenarios and we are contemplating some of the difficulties that may lay ahead. And they may well. But we don't know they're going to happen and right now, what we're advising is people go about their business. If you can prudently save fuel, then do that. We understand that for a whole lot of people they need to use their car and that's understandable as well. We are not at a point of taking more significant demand action than that– 

FELGATE: So we’re not at a point of rationing or demanding people work from home?

MARLES: We're not. And people have asked me the question, you know, is it a matter of when, not if? 

FELGATE: Yeah. 

MARLES: I actually think it is still a matter of if. I mean, clearly if this does proceed for longer and global fuel supply chains are disrupted more, then we are going to see more difficult weeks and months ahead. But right now, the point that we're at, where we had calibrated this, we see as being enough. And we'll make the decisions that need to be made as this proceeds.

FELGATE: Can I ask you, given that you are the local member down that way, what is the Geelong refinery doing? You mentioned that just before. And what does that produce for our fuel supplies here in Victoria?

MARLES: I mean, firstly, I think it's put into very sharp relief the significance of the Corio refinery to the state and to the nation. It supplies about half of Victoria's fuel and what – it's probably more in the weeds than maybe people want to know – but it is refining crude oil which is largely imported into Australia. But that crude oil is not imported through the Straits of Hormuz. It comes from other parts of the world. And so in that sense, the refinery is, if you like, decoupled from the Straits of Hormuz. The other half of the fuel supply that we consume in Victoria is imported refined product, and that comes from refineries largely in East Asia, places like Korea. And we are talking with those countries right now in order to our best to secure that supply as well. Now, that is product which ultimately is derived from crude oil, which comes out of the Straits of Hormuz. So as a nation, we're clearly connected to the Straits of Hormuz. In fact, the refinery at Corio is not. And that's why it is such an important asset for the state and for the country. As I say, it's about half of the state's fuel consumption, it's about 10 per cent of the nation's fuel consumption. And it does supply into southern NSW and into South Australia, and I– don’t’ hold me to this, but I think into Tassie as well. But it is a very big part of Victoria's supply.

FELGATE: Yeah, wow. And just a couple of quick ones. As reported, Australia will meet with other leaders from 35 countries for this virtual summit on the reopening of the Straits of Hormuz. Will you be in that meeting?

MARLES: Well, Australia will be represented in that meeting and we’ll be represented by the Foreign Minister tonight. We signed on to a statement that was led by the United Kingdom the weekend before last – and really, this is a follow on from that – where we made clear that we were willing to play our part in whatever might be done to have the Straits of Hormuz open when conditions allow. And I emphasise that last phrase, and conditions don't allow right now. There is a lot of planning going on. We are talking with countries like the UK and France, both of whom will be participating in the meeting tonight, to look at what contribution we can make. Given what I've just said about how we consume our fuel, we have a massive national interest in seeing the Straits of Hormuz be open. So this matters to us. Exactly what we would contribute in the circumstances is hard to speculate on until we really understand what plans people are considering, what plans countries are considering, and the kind of role they might consider in respect of us. But I would point out that we have an E-7 Wedgetail, which is a really significant platform, which is now in the region, has been there for a couple of weeks. It's doing really important work in contributing to the defence of the countries of the Gulf and in particular the United Arab Emirates, and it's there at the request of the UAE. And so, that is an important asset which is already in the region.

FELGATE: And just finally, on Donald Trump's remarks earlier today, Australian time. I asked Bob Carr the same question. Is the US still a good friend to Australia?

MARLES: The Alliance with the United States goes back a very long way and is enduring, and it's as important today as it has ever been. And I'm very clear about that, and the Government is very clear about that. We engage with the United States in so many different ways and very much in respect of our national security. And that continues to be profoundly important.

FELGATE: Really appreciate your time, Deputy Prime Minister. Have a safe Easter.

MARLES: You too, Jacqui. Thanks.

ENDS