From the AFR:
Labor has raised the spectre of imposing a domestic gas quota on large LNG projects, saying it will introduce a national interest test for future – or significantly expanded – gas projects that would be assessed by a FIRB-style independent board.
The move comes after three years in which the Coalition has been unable to provide a clear answer to rising domestic gas prices for manufacturers and consumers as east coast gas is increasingly sold to overseas markets, with resulting contentious pressure for the development of coal seam gas projects on agricultural land along the eastern seaboard.
The policy will be unveiled at a manufacturing plant in Melbourne by shadow treasurer Chris Bowen on Wednesday.
Although Labor insists it represents “light touch” regulation that would apply to only larger LNG projects, the move would represent a significant swing towards industry regulation by the opposition in an election campaign in which both sides of politics are emphasising spending on industry to promote jobs and local production.
Chris Bowen himself writes at the AFR:
The multinationals extracting our gas are obviously keen to sell it to the highest bidder – regardless of whether that bidder is domestic or foreign.
This means that right across Australia, manufacturers face serious cost pressures.
That’s the problem. Is there a solution?
Well, not if you listen to Malcolm Turnbull and the Liberals.
The good news is there’s actually plenty more the federal government can do, and a Shorten Labor government would do it.
If elected, Labor would follow the lead of other gas-rich nations, like the US and Canada, and introduce a Domestic Gas National Interest Test for new or significantly expanded natural gas export facilities.
The basic idea would be that every time a company wanted to create a new gas project an independent board, appointed by the Treasurer, would assess what impact it might have on the national interest.
…This might include a conditional approval, under which some of the gas could be slated for LNG export, while some could be reserved for domestic use.
The important thing is under a Shorten Labor government, Australia will have a strategy to ensure exporting natural gas is in the interests of all Australians, whether LNG exporters, local manufacturing businesses or households.
Well, sure, but it won’t do anything to stop price rises in the next decade. The question is where was this policy between 2007-13 when Labor ruled? Applying it now is purely symbolic. There will not be any more large LNG projects for so long that it might as well be forever. It should be made retrospective but we all know where that would lead coming into an election don’t we?
This is a fig leaf for earlier failed policy.
