According to Tony Abbott, axing the carbon tax was all about Australia regaining it’s place as a ‘cheap energy superpower’, as he put it. It’s a shame gas producers don’t seem to share his plans.
An alliance of industry associations – largely in the manufacturing sector – have released areport today by Deloitte Access Economics outlining that soaring gas prices will curtail output in manufacturing and mining sectors by levels which this industry alliance claim are “significantly larger than those associated with repeal of the carbon tax”.
The group – involving a coalition of the Australian Industry Group, the Aluminium Council, the Energy Users Association, Plastics and Chemicals, Food and Grocery Council and the Steel Institute – point out that the expected rise in gas prices as part of LNG exports will have the following impacts:
– Australia's manufacturing output will contract by $118 billion over the next seven years;
– The mining sector will contract by $34 billion and the agriculture sector by $4.5 billion; and
– 14,600 manufacturing jobs will be lost.