"Australia needs a gas reservation that is strong and fair and we will work through new draft laws to ensure that happens," Innes Willox, Chief Executive of national employer association Australian Industry Group, said today.
"The draft laws released today are complex and we'll be consulting our members, starting at a forum this afternoon, to fully understand it and respond. Many industrial sites use gas for process heat or feedstock, and gas plays an essential backup role in the electricity system that all of industry depends on.
"Australian Industry Group has worked with member businesses and like-minded organisations to put forward principles that hold the line on a strong reservation, and to ensure it works smoothly and fairly.
"Key positives in our early assessment of today's draft laws include:
"The biggest outstanding question is how fairly the domestic supply obligation will be spread across exporters. Distinguishing the West from the East makes good sense. Leave passes for individual Eastern exporters would not.
"We'll be working to understand how this plays out. The right result would see all in-market exporters contribute as much as possible towards meeting demand within the 20% reservation cap. The many flexibilities the scheme offers make it much easier to do that while fulfilling export contract commitments.
"Industry is much encouraged by what we're seeing in the draft reservation. There is still much work to do to ensure Australians will have secure gas for as long as they need it at the most affordable prices that can be sustained," Mr Willox said.
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