ALP vow on gas supply, price
BILL Shorten will vow to introduce a permanent gas export controls trigger if he becomes prime minister, ensure domestic energy needs are put first by boosting gas supply and putting downward pressure on gas prices.
The Labor leader will today promise to protect Australian jobs by ensuring manufacturing has priority over domestic use by introducing a National Interest Test that will apply to all new LNG export facilities or significant expansions of existing facilities.
He will also give the consumer watchdog new powers to monitor prices and crack down on anti-competitive behaviour in the gas market that causes inflated prices and to make the market more transparent and competitive.
The Federal Government read the riot act to gas companies last year after warnings Victoria and New South Wales could face a shortage because of increased exports, a decline in production in Bass Strait and state bans on convention and unconventional exploration.
Under Labor’s proposal if prices are too high — based on a benchmark set by the Australian Competition and Consumer Commission — the trigger can be pulled to enact export controls. This will include putting third party gas supplies back into the domestic market to drive down prices, rather than allowing them to flow overseas.
The ACCC’s Gas Inquiry Interim Report of December 2017 set a benchmark price of between $6.55 a gigajoule and $9.93 a gigajoule, but Manufacturing Australia says its members are being quoted prices of between $10 and $12 a gigajoule.
Mr Shorten said a Labor government would ensure Australia’s energy needs are put first, introducing measures to boost local gas supply, put downward pressure on gas prices and protect Australian jobs.
“At the moment, there is no requirement for the Liberals to pull their weak and ineffective gas trigger when prices are too high. This is putting Australian manufacturers under pressure and risking local jobs,” Mr Shorten said.
“We don’t want local jobs to go overseas with our gas. That’s why Labor will introduce a permanent gas export control trigger.
Executive Director Manufacturing Australia Ben Eade said Australian businesses were to be competitive gas pri- ces would also need to be.
“In the long term, that means we need more supply and more suppliers. But export controls provide an important safeguard and a bridge to longer term measures,” Mr Eade said.
“The measures announced today would strengthen existing gas export controls and put rigour around what constitutes a fair price for domestic gas. That’s very important to securing the next generation of manufacturing jobs and investment in Australia.”