Bluescope head warns energy costs could cripple local industry

Bluescope head Paul O'Malley

The head of Australia’s largest steelmaker Bluescope Steel, Paul O’Malley said that energy insecurity in the country is so high that jobs “could leave the countries in droves”, according to the Australian Financial Review. 

O’Malley said that while the government is dithering on the particulars of energy policy like the Renewable Energy Target (RET) and Clean Energy Finance Corporation (CEFC) investments, Australia’s international competitiveness is suffering.

The Bluescope head said that the government should legislate a new “base load energy target” to ensure a steady flow of energy. 

Energy minister Josh Frydenberg said that the government is looking at all options as the Coalition attempts to back coal through the CEFC. 

O’Malley said that another major problem for industry was that too much of Australia’s gas is being exported overseas.

“Reservation in Australia is a dirty word,” O’Malley said.

“If there is gas in Australia and we say it can go overseas, and we don’t have any baseload generation I think we are going to have an energy catastrophe in Australia.”