“We don’t want to get 12 or 24 months down the road and have industry hollowed out by a war in Ukraine,” he told the 75 executives at a lunch in Parliament House.
An international energy crunch is driving international demand,following Russia’s invasion of Ukraine,and the federal Treasury forecast that gas prices would rise a further 20 per cent next year,and electricity prices 30 per cent.
The Albanese government is under pressure to relieve the pressure of energy costs on households and industry,following its election promise to revitalise manufacturing and cut power bills by $275 by 2025.
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Energy Users Association of Australia chief executive Andrew Richards,who represents manufacturing businesses,said many of his members are “horrified” at the price of gas being offered to them,as they looked to replace expiring long-term supply contracts with new deals priced for the current market.
“It’s getting to the point where those companies that can pass the costs through to products on the supermarket shelves can’t compete against imported products.
“That’s when they say ‘what’s the point of staying in business?’