There is a reason that Australian manufacturing is going out of business beyond the pressures of the ponzi economy.
It is stupid:
Manufacturers have warned an ongoing gas crunch could force factories to the brink, as big users on the east coast scramble to find new supplies to power their industrial operations.
The federal government late last year legislated a cap on uncontracted gas at $12 a gigajoule, and said it would establish a mandatory code of conduct to force gas to be sold at “a reasonable price”.
…“Our gas pricing in this country is capped at $12. If I manufacture in Canada, I pay less than $C2 per million British thermal unit,” Orica chief executive Sanjeev Gandhi said.
“So even when you consider imports and supply chain costs, if I bring the product into Australia, it is still cheaper than the high gas price that I have to absorb. So already today, I have this disparity.”
Dude, you have had access to sub-$12Gj gas for one day in the last five weeks. That was yesterday. Today the price is back above it at $14.50Gj.
This is a gift as s lobbying tool, right? The failed price cap needs to be strengthened and enforced.
Why wouldn’t a major manufacturer that has the media on the hook put the heat on?
As well, it’s no good just plumping for more gas. We have oodles of it. The problem is the gas cartel that controls it.
I suggest Orica head off to Canada because it is clearly unable to make headway here.
