Opposition Leader Peter Dutton’s announcement of a so-called 'gas reservation scheme' is a cynical hoax designed to mislead Australians instead of genuinely addressing the nation's gas retention problem, according to the Australian Workers' Union.
The AWU has long-called for a gas reservation scheme, which would guarantee that a sufficient portion of the gas Australia extracts stay in the country to power industry and lower electricity prices. But after analysing the detail of the Coalition's proposal the AWU has concluded it is either inept or bad faith.
"This is an imitation reservation scheme that barely qualifies as a gesture," said AWU National Secretary Paul Farrow.
"Peter Dutton claims he's putting 'Australian gas for Australians,' but the reality is his proposal would leave Australians with nothing but scraps."
Under the Coalition’s scheme, only east coast LNG spot cargoes—small amounts of gas sold overseas on a one-off basis—would be reserved for domestic use. This amounts to 1% of the gas Australia produces each year. Put another way, reserving east coast spot cargoes for east coast users would leave the eastern states paying the same high prices for over 85% of their gas.
"The Coalition would reserve just one per cent of our national production. Dutton's proposal would leave east coast workers, households, and manufacturers stuck paying exorbitant global prices most of the time," Mr Farrow explained.
"It’s not a solution, it's a hoax. We shouldn't let Peter Dutton gaslight us. It’s clear this is a plan crafted in consultation with the gas industry to dupe voters, allowing producers to continue exporting our gas at huge profits while Australian consumers and businesses get short-changed."
However, Mr Farrow said that although the Coalition’s scheme itself was near-worthless, its acknowledgment of the necessity of a gas reservation scheme was an opportunity for Labor.
"The one silver lining of Dutton's initiation reservation plan, is that it is an overdue admission from the Coalition that a gas reservation scheme is needed," he said.
"The AWU has argued for over a decade that Australia can produce more than enough gas to meet all domestic needs without interfering with existing long-term export contracts. A genuine reservation scheme could include gas from new and expanded fields, as well as gas purchased by LNG exporters from our domestic market instead of producing it themselves. It could also extend to cover long-term export contracts as they expire from 2031 onwards. This is the good faith policy that Labor should now advance."
Mr Farrow pointed to Western Australia’s successful reservation policy as proof of concept, noting that WA has enjoyed stable and affordable gas prices for years thanks to a well-implemented state reservation.
"Western Australia shows us exactly how a fair and comprehensive gas reservation scheme can work. Labor now has an opportunity to demonstrate its commitment to Australian workers, households, and manufacturers by implementing a similar policy for the east coast," Mr Farrow said.
Contact details:
Anil Lambert 0416 426 722