Onderzoek 911

Oil? What oil?

PM denies Iraq-oil link Prime Minister John Howard today denied he had admitted that oil was behind his decision to keep Australian troops in Iraq.

Mr Howard said it was "stretching it a bit" to interpret comments by either himself or Defence Minister Brendan Nelson as meaning that the war on Iraq was about petrol prices.

But federal Opposition Leader Kevin Rudd and minor parties said the government had finally admitted that oil was behind Australia's decision to join the US-led invasion of Iraq - one of the world's largest producers of crude oil.

Dr Nelson told ABC Radio this morning that the Middle East was an important supplier of oil and Australians had to consider what would happen if troops withdrew prematurely.

And Mr Howard told a strategic conference in Canberra that energy demand was one of the reasons for establishing a stable, democratic Iraq.

He later denied that he or Dr Nelson had said troops were staying in Iraq to protect the western world's oil supply.

"I had a look at what Brendan said and I think in fairness to him he didn't quite say that," Mr Howard told Macquarie Radio.

"I haven't said in my speech that the reason we went to Iraq is oil or the reason we're staying there is oil.

"We are not there because of oil and we didn't go there because of oil. We don't remain there because of oil. Oil is not the reason."

Mr Rudd accused Mr Howard of making up policy on the run, saying Australian troops should never have gone to Iraq.

"When Mr Howard was asked back in 2003 whether this war had anything to do with oil, Mr Howard said in no way did it have anything to do with oil," Mr Rudd told reporters.

"This government simply makes it up as it goes along on Iraq."

In his radio interview today, Dr Nelson said "energy security" and stability in the Middle East were crucial to Australia's future.

"The entire (Middle East) region is an important supplier of energy, oil in particular, to the rest of the world," Dr Nelson told ABC Radio.

"Australians and all of us need to think well what would happen if there were a premature withdrawal from Iraq?"

Shortly afterwards, Mr Howard told the conference that there would be no early withdrawal of troops from either Iraq or Afghanistan, saying it would run counter to the national interest and national character.

"Many of the key strategic trends I have mentioned - including terrorism and extremism, challenging demographics, WMD (weapons of mass destruction) aspirations, energy demand and great-power competition - converge in the Middle East," Mr Howard said.

"Our major ally and our most important economic partners have crucial interests there.

"In these circumstances it is all the more critical that the coalition succeed in establishing a stable democratic Iraq that is capable of defending itself against al-Qaeda and the internal enemies that wish to tear it apart."

Treasurer Peter Costello denied that Australia's commitment to Iraq was about cheaper petrol prices.

"We're fighting for something much more important here than oil, this is about democracy and freedom in the Middle East," Mr Costello told reporters in Melbourne.

"Repeat after me: it has nothing to do with oil. Except that it is becoming more expensive to fuel our helicopters and tanks."