Business

Report reveals unintended LNG export consequences

SETTING aside some of Australia's booming gas production for domestic use is again on the agenda, after a report revealed some of the unintended consequences of LNG exports.

Backed by manufacturing groups, the Australian Industry Group and the Plastics and Chemicals Industries Association, the report was released on Wednesday by private researchers at National Economics.

While gas was a minor part of the electricity supply generally, it was a major supplier to the manufacturing and industrial sector.

The report found that for every $1 of benefit gained from exports (of LNG), $24 of benefits was lost in contraction of the gas-dependent industries.

While Prime Minister Julia Gillard ruled out the reservation of gas exports for domestic industry or electricity production, the report lends weight to the industry's calls for such reservation among other changes.

The report showed the increased export of gas could lead to rising domestic costs, especially on the east coast, and that current Commonwealth policy settings favoured exports over domestic sales.

Similar views were promoted by various industry leaders earlier this year, including AIG chief executive Innes Willox.

Mr Willox was part of a group of industry leaders who sit on the PM's Manufacturing Taskforce, which released a report in August outlining what should be done to grow the troubled sector in Australia.

An appendix to the taskforce's report outlined the risks of not setting aside some of Australia's gas production, but the issue failed to gain traction with the Federal Government.

Mr Willox said the industry group's concerns about the "potential unintended consequences" of the gas boom, led to the commissioning of the report.

"Where there has been debate at all, it has centred on the shortcomings of possible responses such as gas reservation, rather than on the nature of the problem itself," he said.

"There are no easy solutions, and indeed obvious practical economic difficulties, but all ideas should be on the table."

Topics:  australian industry group, lng



Fight breaks out at Rose City Shoppingworld

Police were called just after 1pm.

A MAN has been charged after allegedly causing a ruckus

Extra backpacker beds for Stanthorpe

View of the Stanthorpe CBD from Mount Marley.

Stanthorpe will see a boost to accommodation for seasonal workers

Storms are coming! What it means for your long weekend

Yes, it's going to affect your long weekend

Local Partners

9000 reasons to support our community clubs

Community clubs are good at what they do. They are not so good at telling the world about what they do, as Clubs Queensland CEO Doug Flockhart explains.


Homer Simpson thanks Australia during Opera House visit

Homer Simpson visits the Sydney Opera House.

ANIMATION favourite gets attacked by seagulls in viral video.

Channel 9 orders second season of Doctor Doctor

Rodger Corser stars in the TV series Doctor Doctor.

RURAL medical drama finds a loyal following.

Katy Perry gets naked to encourage people to vote

Katy Perry in Funny Or Die sketch

Katy Perry has stripped naked for a comedy video

Jogging Tom Hanks crashes wedding in Central Park

Tom Hanks stopped for a selfie with this bride and groom

MOVIE REVIEW: Storks delivers family fun

A scene from the movie Storks.

ANIMATION can be hit or miss but when it hits, it hits hard.

Nick 'the snake' to call the shots on Survivor jury

Australian Survivor contestant Nick Iadanza.

LATEST evictee is out of the game but will still have a say.

$40million hotel, shops development project for Mackay

Mt Pleasant hotel and retirement accommodation, proposed at 194-202 Malcomson St.

$40m development to take Mackay to 'the next level'

Rural properties expected to soar as investors seek income

Rural properties are should become highly sought after

Property 200m from ocean selling for just over $100K

BEACHCOMBER PARK: Work has started on a new $19.2 million development at Toogoom.

The estate's developer is offering huge discounts for early buyers.

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'

First stages of $25 million housing development underway

New development on Madsen Rd - The Springs.

The blocks of land are much bigger than usual

Couple build their own 'tiny house' for $45k

Holly Bowen and Oli Bucher built their "tiny house" themselves, only hiring a plumber and an electrician. Photo/supplied

The house, which is built on a trailer and can be towed.