Manufacturing calls for “gas gap” inquiry

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The Australian Industry Group has called today a inquiry into the “gas gap”, as local gas supplies are diverted to exports and manufacturers face the prospect of dramatic price rises.

Following the release of the Federal Government’s Energy White Paper, manufacturers from across Australian industry are today jointly questions about domestic gas supply and prices in light of the expected massive increase in gas exports. The Australian Aluminium Council (AAC), the Australian Food and Grocery Council (AFGC), Australian Industry Group (Ai Group); The Australian Steel Institute are concern the risk of a ‘gas gap’, despite foreshadowing oth

Ai Group Chief Executive, Innes Willox, said: ” manufacturing industries and is an essential feedstock at the foundation of many chemicals industry value chains. Gas is also increasingly crucial to our broader economy, especially in providing peaking power and cleaner baseload supply in the electricity system. “Any threat to the supply and affordability of gas is therefore a serious matter.”

So far as I can tell, there was absolutely nothing in yesterday’s Energy White Paper addressing this issue.

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Of course the call has gone completely unheeded by the government and the business media. Why?

Sell ’em dirt!

white paper gas inquiry final (1).pdf

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.