Statement from Innes Willox, Chief Executive of Australian Industry Group
The Gas Reservation Bill introduced to parliament today is a complex piece of legislation and we are taking the time to go through it in depth to assess against the Exposure Draft and our previously proposed amendments.
What is already clear is that the Government has taken on some of our feedback, including the inclusion of lower gas prices in the Objects of the Bill.
But some of our issues do not seem to have been taken on directly, though they may be reflected in other ways.
For instance, provisions to ensure gas supplied domestically on behalf of exporters is genuinely additional, not rebadged existing supply, do not seem to have strengthened.
Industry and the Parliament need to move swiftly but surely. The detail of this Reservation must be sweated over to get the strongest and most effective system possible.
The reality though is time is short. Gas prices in Australia are subdued today, even as they surge overseas, because the gas industry is holding its breath until the rules are settled.
Clear final rules are needed to enable continued investment and contracting. If those rules are weak and full of loopholes, however, we will see local gas prices return to tight linkage with foreign LNG and oil markets, and further pain for industry and households.
That can and should be prevented by the legislation the Parliament ultimately passes. There will be more debate around the details but the Parliament should be in no doubt that a well structured plan is essential to allow Australian industry as a whole to compete, grow, invest and employ.
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