The Australian Industry Group’s (AiGroup) report Energy Shock: No Gas, No Power, No Future shows clearly that the Turnbull Government’s posturing on energy policy ignores the real crisis facing Australian manufacturers and their employees.
AiGroup warn that wholesale electricity prices are doubling, and wholesale gas prices are doubling and may well rise much further.
Labor’s Shadow Minister for Innovation, Industry, Science and Research, Senator Kim Carr said “The whole country will be impacted by the consequences of the Liberal’s policy failures, with energy-intensive manufacturers set to be especially hard-hit, paying up to $4 billion more a year. Such a cost impact may be enough to push good businesses over the edge, costing jobs and hurting the whole country’s manufacturing capacity.”
Labor’s Shadow Climate Change and Energy Minister, Mark Butler, stated “This report confirms the Turnbull Government’s plan to build new coal-fired generators to deliver cheaper and more reliable electricity to households and businesses as nothing more than fantasy. Instead it rightly focuses on the real causes of energy insecurity, including a growing domestic gas supply crisis and its consequences for electricity prices as gas-fired generators become an increasingly important part of the electricity market.”
Primary metals producers, food-processing businesses, and manufacturers of chemical and non-metallic mineral products – including building products – will be particularly exposed to the Turnbull Government’s energy crisis.
Many of these firms are highly trade exposed and competing in a fierce global markets. For some, their long-term viability is already in doubt.
But the Turnbull Government has no plan to deal with this crisis and no plan to ensure that manufacturers can keep operating.
“All this Government has contributed is stunts with lumps of coal in Parliament, and deceitful attacks on jobs and investment in the renewables industry. The AiGroup’s report is an urgent warning that this is no time for stunts and political point-scoring on energy security.” Said Mr Butler.
Senator Kim Carr said “We need measures to increase domestic gas supplies to meet the needs of electricity generators and industry and we need efficient and transparent reform of the Australian energy market. Labor’s energy policies are already addressing these issues, but the Turnbull Government is missing in action.”