Australia politics live: Peter Dutton says federal election a ‘sliding doors moment’ for the nation in budget reply speech

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Dutton promises gas reservation policy as budget reply speech begins

Peter Dutton is unveiling his budget reply. This of course isn’t just replying to the government’s budget; it’s also his opportunity to outline the Coalition’s policies ahead of the next election, which will probably be called tomorrow.

As anticipated, there’s a focus on energy, housing, migration, and crime. And Dutton has also added health to that list, promising more money for youth mental health.

The headline policy from tonight, in addition to the already-reported fuel excise cut, is a gas reservation scheme on the east coast:

We will immediately introduce an east coast gas reservation. This will secure an additional 10% to 20% of the east coast’s demand – gas which would otherwise be exported.

Gas sold on the domestic market will be decoupled from overseas markets to protect Australia from international price shocks.

He claims the policy will lower wholesale domestic gas prices from $14 per gigajoule to under $10 per gigajoule.

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Dutton goes all-in on gas in budget reply speech

Above the commitment to introduce a gas reservation scheme for the east coast, Dutton also promises to increase the number of gas projects, particularly in southern states, and halve times for project approvals (this includes fast-tracking WA’s north-west shelf – a pledge which the government says could trigger a lawsuit).

He’s also promising more money and incentives to develop new gas projects, which he promises will lower gas prices for households:

We will accelerate new investment in gas projects by reinstating a $300m strategic basin plan and include gas in the capacity investment scheme.

We will invest $1bn in a critical gas infrastructure fund to increase gas pipeline and storage capacity.

We will put in place ‘use it or lose it’ stipulations for gas drilling companies – so offshore gas fields are not locked up for years.

Adding gas to the capacity investment scheme (CIS) would open up significant subsidies for the gas industry. The government and experts have said the CIS should stay focused on renewables.

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