The Problem: The impact on Australian jobs
Already, Australian manufacturers are reporting they are finding it near impossible to get new supply contracts for the gas they need to keep operations running, because export contracts have been locked in.
A BIS Sharpnel report found that as a result of rapidly rising gas costs and constricting availability, one in five heavy manufacturing operations would shut down over the next four years. The net direct impact on industry output is negative $58 billion. The direct impact on manufacturing employment would be 91,300 fewer jobs by 2023.
The flow on effect of this would be a loss of $101 billion - even taking into account the benefits of LNG export.
235,000 Australian jobs would be lost, economy wide, by 2023.
All research indicates the projected rise in gas prices will cause a much greater impact to industry than the much-discussed carbon tax.
Many Australian manufacturers are already starting to flag mass closures as a result of rising gas prices.