The Turnbull Government’s announcement that they would intervene to limit gas exports in times of supply shortages shows that the Government has listened to calls from manufacturers, including the forest industry, to secure affordable domestic gas supplies, the Australian Forest Products Association (AFPA) said today.
AFPA CEO Mr Ross Hampton today congratulated the Government for acting to support access to local gas for Australian manufacturers. “Our industry is pleased that the Prime Minister has listened to manufacturers, including the forest industry, and moved to ensure that gas is available,” Mr Hampton said.
“Affordable and secure supply is hugely important for the wood and paper product manufacturing sectors of the forest industry, and the tens of thousands of regional jobs associated with it. Our industries have been hit hard by huge increases in both gas and electricity prices, and AFPA has been persistent in detailing the grim consequences for jobs and manufacturing if a solution was not found. We look forward to seeing the downward pressure on gas prices that the Prime Minister expects to flow from this decision.”
Export controls will be able to be imposed on companies when there is a gas supply shortfall through an ‘Australian domestic gas security mechanism’, according to the Government announcement.
“This is a useful first step,” Mr Hampton said. “Wood and paper product manufacturers are significant energy users, and anything that helps secure supply at an affordable price will be welcome. However, we need to remember that long-term certainty is crucial, and that requires expansion of gas exploration to secure future supplies. The Government must now follow up this intervention with more positive actions to safeguard our manufacturing industries and our regional jobs.”