Center Alliance got gas reservation guarantee on paper

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Via The Australian:

Centre Alliance senator Rex Patrick wanted the government’s intention on gas in writing before he offered his party’s support for the full tax cut plan.

Senator Patrick told The Australian the document detailed the measures of the government’s gas plan and the timetable in which they would be rolled out “over the next few months”.

Centre Alliance says it has achieved changes to the Australian Domestic Gas Mechanism, new transparency measures for the gas market and long-term plans to ensure surplus domestic gas supply.

Senator Patrick says the gas reforms he has negotiated with the government will “cause lower electricity prices” but won’t say if he has a signed commitment for the policies.

“We’re gonna have a bunch of people, hardworking Australians, that get a tax cut,” Senator Patrick told ABC radio this morning.

“What we’ve done with the Government is negotiated a range of policy measures that they will announce over the next couple of months. And we have a very clear understanding of what those policies are. And we anticipate that they will have a positive effect for consumers on pricing.

“It’ll be good for consumers … it might be bad for gas companies.”

Sounds good. Let’s see!

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.