News

Rising gas prices could cost manufacturers billions: report

AUSTRALIAN manufacturers have called for more government intervention in the burgeoning gas export industry following the release of a report predicting higher gas prices could result in $120 billion in lost manufacturing production by 2021.

The Deloitte Access Economics Report was commissioned by the Australian Industry Group and other manufacturing peak bodies to predict the local impact on Australian manufacturers of the gas export rush.

It predicted the manufacturing industry would face "painful consequences" following gas price hikes caused by the export push.

In one scenario it predicted a $120 billion reduction in manufacturing output by 2021, and the loss of almost 15,000 jobs, with the latter widely considered a conservative estimate.

While it also estimated an overall positive impact on GDP, "both costs and benefits are very unevenly spread across sectors and regions".

In a statement, Manufacturers Australia said the report's findings echoed a previous study "which also found that the unrestricted export of LNG from Australia's east coast was creating supply constraints, market dysfunction and skyrocketing prices".

"We have been warning federal and state governments for almost three years that a "hands off" approach to the transition to gas exports would be disastrous for domestic industry," chairman Sue Morphet said.

Manufacturers Australia executive director Ben Eade said the current situation was on a "winners and losers" trajectory, with gas exporters taking all the benefits, and consumers losing out.

He said measures needed to be in place to ensure there was sufficient supply of gas to domestic users at competitive prices.

Curiously, oil and gas lobbyist APPEA and anti-coal and gas group Lock the Gate both welcomed the report, but for polar opposite reasons.

While APPEA used the report as an opportunity to call for the softening of regulation and an increase in production, Lock the Gate and NSW Greens MP Jeremy Buckingham argued the opposite. He blamed the report's predicted $21 billion loss to the NSW economy "firmly at the feet of multi-national gas companies pursuing coal seam gas for export".

Lock the Gate national co-ordinator Phil Laird said margins in manufacturing were "wafer thin" and the price increases could "devastate" small-scale manufacturers, particularly in the regions.

"Our country has a lot of gas but it's not enough to satiate the whole world's gas needs. The prices are only going to go up," he said.

Topics:  australian industry group gas



Assault charge dropped in police bashing case

Alleged police bashing victim Corey Barker and his mother Angelique Sines leave the Sydney Downing Centre courts after giving evidence against six officers accused of assaulting him and lying in court.

"You must return a verdict of not guilty," the judge said

Fraud and scams skyrocket in Ballina

ONE example of a scam text received by a Northern Rivers resident.

SCAM WATCH: Ballina residents put on alert for dodgy South Africans

Council works to preserve cultural gem

VISIONARY: Boomerang Festival Photographic Exhibition will feature Ben Knight's photo of Pat Tierney

Committee to brianstorm ideas to enrich Boomerang Festival

Local Partners

ABC's Fresh Blood graduates are a Skit Box full of laughs

Sarah Bishop, Greta Lee Jackson and Adele Vuko in a scene from the TV series Wham Bam Thank You Ma'am.

ALL-female comedy trio hitting the mark with new sketch show.

Kim Kardashian West said to be looking for a divorce

Kim Kardashian West is looking to file for divorce from her husband

HBO announces which show will replace Game of Thrones

Diana Rigg, Natalie Dormer, and Hannah Waddingham in a scene from Game of Thrones.

Game of Thrones is definitely not coming back next April

Adele's Carpool Karaoke biggest viral hit on YouTube in 2016

The video has already attracted more than 135 million views

What's on the big screen this week

TJ Miller and Jason Bateman in a scene from the movie Office Christmas Party.

A COMEDY about a rowdy office Christmas party hits cinemas today.

MOVIE REVIEW: Moana is an original adventure in paradise

The character Maui (Dwayne Johnson) in a scene from the movie Moana.

One Boxing Day animated film has a heart as big as the Pacific Ocean

INSIDE STORY: The highlights of your $150 million CBD

GRAND PLAN: The highlights of the Ipswich CBD redevelopment and where they will be located.

Work on city heart's radical transformation to begin next year

VOTE IN OUR POLL: Sand mine opponents face serious dilemma

Public meeting for the proposed sand mine at Maroochydore last week.

Coast MP calls on Minister to stop KRA proposal with stroke of a pen

Developer's grand new multi-million dollar estate

NEW ESTATE: This is the only plan revealed by the property developer's new Billabongs Estate in Agnes Water.

DEVELOPER given the go ahead for a massive estate with 149 homes.

Banks reclaim Gladstone homes as job losses bite

LONG FALL: Property experts Heron Todd say, based on key market indicators, Gladstone is still travelling to the bottom of the market, with property prices set to get cheaper.

Property valuers say Gladstone housing market hasn't hit the bottom

The million dollar property to test Mackay's market

This Victoria St building will go to auction Tuesday and investors will be watching closely to see how much it sells for.

'High profile architect designed CBD asset' goes to auction

Ready to SELL your property?

Post Your Ad Here!