“I will back local manufacturers over multinational greed every day of the week,” Husic told this masthead.
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Sources with knowledge of the discussions say Husic has told LNG companies the Albanese government would not accept losses of manufacturing businesses.
TheAustralian Financial Review reported on Monday that King had proposed a scheme to cap gas prices for domestic buyers instead of imposing export controls but the LNG companies have rejected the offer.
“The Albanese Government is committed to ensuring affordable,reliable and secure energy for Australian households and businesses,” a spokesman for King said. “The minister will have more to say on this matter soon.”
Australian Petroleum Production and Exploration Association chief executive Samantha McCulloch said the industry was “committed to ensuring adequate and reliable supply of gas to the domestic market” and new price or export controls would create “uncertainty among overseas trade partners and investors”.
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Opposition resources spokesman Senator Susan MacDonald said the government should help fund the industry to open new gas fields instead of threatening penalties.
“Minister King knows the answer is bringing online more gas supply but she has her hands tied behind her back and is not supported by her cabinet colleagues,” MacDonald said.
Grattan Institute climate and energy director Tony Wood said the government had very few options but to slug LNG producers,given the high prices would force manufacturing business to close and drive up household power bills.
“I don’t think they have any choice ... businesses cannot sustain these prices”,he said. “Retail prices haven’t flowed through yet,because existing contracts are in place but eventually that will happen.”
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Australian Industry Group (Ai Group),which represents gas-dependent manufacturers said companies seeking new supply contracts have been confronted with prices double their previous cost.
“Government action is needed,but not just anything will do,” said Ai Group policy advisor Tennant Reed. He wants new measures to keep a lid on prices and boost supply,as well as funding to help companies switch from gas to electricity created by renewables.
Greens leader Adam Bandt is pressuring the government to ditch their support for new fossil fuel projects and urged it to slap a new tax on the LNG profits.
“Instead of tinkering around the edges,Labor should put a windfall tax on the gas industry’s obscene profits,then use that money to help households and businesses get off expensive gas,” Bandt said.
The Energy Users’ Association of Australia,which represents large industrial energy users,urged the government to force LNG producers to guarantee cheaper gas for the domestic market.
“Without competitively priced gas for manufacturing these locally made products become more expensive and risk being replaced by imports,” said the association’s chief executive,Andrew Richards.
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