Manufacturing Australia releases plan to fix local gas market

Manufacturing Australia has launched a 13-point plan
for improving local gas supply, which it says currently puts 83,000 industry
jobs at risk.

AAP reports that Manufacturing Australia’s plan
involves suggestions aimed at creating more transparency in the market for natural gas, more trading hubs,
and for the states to enforce “use it or lose it” laws to stop gas being
withheld.

“If
we continue on the path we’re on Australia will lose much of our gas intensive
manufacturing industries,” the group’s Mark Chellew told AAP.

“And we’re not likely to get them back.”

Manufacturing Australia said it is not pushing for a domestic
gas reservation scheme on the east coast.

The Australian reports that MA also proposes a
royalties system to help encourage landowners to accept CSG extraction.

“Landowners don’t actually participate in the wealth
creation happening through coal-seam gas, and we think there should be some
sort of intervention where those gas royalties are shared with the landowners
and their immediate neighbours in the local community rather than (all) going
to the government,” Chellew told The Australian.

Manufacturing Australia was formed in 2011 to oppose
the carbon tax introduced by the then-Labor government. Its members include Brickworks, BlueScope Steel and Incitec Pivot.

To read the group’s paper, Reforming The East Coast Gas
Market
, click here.

Image: Bloomberg

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