The Australian Workers' Union has strongly endorsed the Albanese Government's announcement of a domestic gas reservation scheme as a historic victory for Australian manufacturing and workers.
AWU National Secretary Paul Farrow said the decision to require exporters to reserve between 15 and 25 per cent of gas production for domestic use marked a turning point for Australian industry.
"The best time to introduce an Australian gas reservation scheme was a decade ago. The next best time is now," Mr Farrow said.
"The AWU has been campaigning for this outcome since 2015. Our slogan from day one was simple: it's Australia's gas, reserve some for us. That basic logic has never faded, and today we see it vindicated.
"When we started the idea was dismissed out of hand by previous governments. But we held hundreds of meetings with politicians of all stripes and industry figures. Today's announcement shows that the persistence of our members has paid off."
Mr Farrow said it was great for the national interest that Australia finally has a federal government willing to make hard calls and stand up to noisy multinational corporations.
"The Albanese Government has put the interests of ordinary Australian workers and their families ahead of corporate pressure. That takes courage and we commend them for it,” Mr Farrow said.
“Because of a series of weak decisions by Australian governments during the late 2000s and early 2010s, foreign gas giants operating here were gifted the sweetest deal out of anywhere in the world. They've been able to pump our gas out of the ground and flog it to the highest foreign bidder without restriction. It's high time for a fairer deal, and that's what this government is delivering."
Mr Farrow said the government had chosen the right model for the reservation scheme.
"Crucially, the government has opted for an export permit system that requires exporters to meet domestic supply obligations before exports are approved,” Mr Farrow said.
“This is exactly what the AWU called for in our submission to the Gas Market Review. This approach targets the multinational exporters who broke the domestic market in the first place.
“Obviously there is detail that still needs to be shored up and the AWU will continue to work closely with decision makers as the consultation process progresses. We need to know, for example, that appropriate measures will be put in place to guarantee that gas will be available to industry from Day One of the scheme,” Mr Farrow said.
"The gas market won't be fixed until we solve the price problem once and for all. But today's announcement puts us firmly on that path."
Mr Farrow said the announcement would provide critical support for Australian manufacturing.
"Australian industry has been bleeding for over a decade. Energy-intensive manufacturers have been tottering all over the country, with the high price of gas a major factor for most,” Mr Farrow said.
“My members have been working in a country with more natural gas than almost anywhere else, watching their employers prepare to shut because they can't access affordable gas. It's been madness.
"This reservation scheme can secure affordable gas for Australian homes and businesses, better protect industries from international price spikes, and put manufacturers on a stronger footing when negotiating gas contracts. That means jobs saved and a stronger sovereign manufacturing capability.
"Australia can and should be a manufacturing powerhouse. This announcement is a major step towards that goal."
Contact details:
Anil Lambert 0416 426 722 / [email protected]
Tim Brunero 0405 285 547 / [email protected]
