There’s two metrics that matters when it comes to gas for Queensland industry, that’s price and supply, Leader of the KAP and state Member for Traeger Robbie Katter has said.
“All the talk about drilling, approvals, and even gas taxes miss the point if they aren’t paired with an emphasis on reducing the price paid by Queensland industry,” he said.
The KAP leader asked the Natural Resources minister if he would level the playing field for Queensland industrial users who are forced to pay more than $16/PJ for our own Queensland LNG, while international competitors are only paying $6/PJ.
“The former Labor state government refused to entertain reserving gas for our domestic use and capping the price, and we now have proof the LNP is just as bad,” the Member for Traeger said.
“Queensland produces less than 6% of the world’s gas, yet the government’s headline is still ‘drill baby drill’, as if that’s the solution.
“I’m all for more production, but the headlines and spin are missing the point.
“Even if we dramatically increased production, the global market would gobble it up overnight, with negligible impact on price in Queensland.
“Both LNP and Labor have proven they’re ideologically driven, ignoring logic when it comes to practical policy that will save and generate Queensland jobs and state revenue.
“Labor cut the ribbon on the LNG export industry in Queensland and oversaw the gas prices paid by our industry skyrocket.
“Presented with a tangible, immediate solution to keep jobs in Queensland, the LNP have laughed in workers’ faces, and instead cozied up to the oil and gas companies,” Mr Katter said.
Instead of addressing the crippling pricing and policy settings facing Queensland’s remaining manufacturers, the minister focussed on the interests of international gas companies and their ability to sell gas to interstate and overseas customers and attempting to say exploration permits would miraculously solve our problems.
“We have plenty of gas in this state, and we are more than willing to pipe that gas into the southern states to meet their needs,” the Natural Resources Minister told Parliament.
Mr Katter, frustrated at the lack of action to help Queensland users, further admonished the government’s steadfast adherence to the free market policies.
“If ever there was an example of how the free market has, and continues, to fail Queensland, it’s the LNG industry.
“Before exports begun, Queensland users and manufacturers had access to Queensland gas at prices that were competitive. But since opening up to the global market that’s gone right out the window.
“The craziest thing is Australia is one of only a few countries stupid enough to expose our domestic users fully to the whims of the market.
“Most other, sensible, nations in the developed world put in place policy that protects their industries, their jobs. Us? The bureaucrats and economic rationalists of both Labor and the LNP are too blinkered to see our sovereign manufacturing capacity being flushed down the toilet!
“A capped-price gas reservation, with teeth, is the only way to keep Queensland manufacturing jobs, not line the pockets of multinational gas companies with our natural resource,” the KAP leader said.