The Coalition’s plan to spend $1 billion building gas pipelines to bring new supplies to NSW and Victoria – which could experience shortfalls by 2028 – has met with instant derision.
In an attempt to lower east coast energy bills, Coalition leader Peter Dutton announced plans to divert gas that would have been exported offshore into Australia’s energy grid.
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Dutton’s dual pitch to lower energy prices and boost supply includes immediately introducing an “east coast gas reservation” that would secure an additional 10 to 20% of NSW and Victoria’s gas needs.
“Gas sold on the domestic market will be decoupled from overseas markets to protect Australia from international price shocks,” Dutton told Parliament in his much-anticipated Budget reply speech.
“And this will drive down new wholesale domestic gas prices from over $14 per gigajoule to under $10 per gigajoule.
Dutton’s energy pitch also includes a “fit-for-purpose gas trigger to safeguard supply,” “Use it or lose it” rule to ensure offshore gas fields are not banked to reduce competition, and a commitment to audit development-ready projects that boost supply in Australia’s southern states.
“This plan will prioritise domestic gas supply, address shortfalls, and reduce energy prices for Australians,” he said.
Use our ready-made infrastructure: Forrest
Andrew Forrest, owner of Squadron Energy, dismissed the Coalition’s gas plan as a waste of taxpayers’ money.
What the Coalition’s plans overlook, adds Squadron’s CEO Rob Wheals, is that Australia already has an established LNG import facility ready to bring immediate benefits to Australia.
"Australians shouldn’t have to wait years or pay extra for pipelines they don’t need. We have a clear, immediate pathway to deliver affordable energy to households and businesses across NSW and Victoria,” Wheals said.
The clear, guaranteed, fiscally responsible choice is to leverage our ready-made infrastructure, save taxpayers $1 billion, and rapidly deliver affordable energy to households and businesses across NSW and Victoria.”
Meanwhile, Cabinet minister Jason Clare has castigated Dutton's gas policy and noted Labor had already secured “six times as much gas” as his proposed policy.
“The amount of gas that we secured would power Queensland for two years. We've reduced the price of gas from something like $30 a gigajoule down to $12 per gigajoule,” Clare said.
“That’s why I say this is a distraction from this unpopular nuclear policy that he knows is unpopular.”
Dutton’s other funding commitments
Despite the Coalition’s previously stated position on building seven nuclear reactors by 2050, Dutton’s 4300-word budget reply speech only mentioned the word “nuclear” twice.
Within the speech Dutton confirmed that the Coalition would not promise tax cuts during the upcoming election campaign.
“I would love to introduce tax reform and tax cuts, but the Labor Party has racked up what we now see in the budget papers of about $1.2 trillion of debt,” said Dutton.
“We have a great desire at some stage when we clean up Labor’s mess, but we won’t be able to provide tax cuts during this campaign and I think, frankly, the Labor Party’s tax cuts are a cruel hoax on Australians.”
In addition to the gas plan, other attempts by Dutton to address cost of living issues include halving fuel excise for 12 months.
Dutton also flagged a “significant funding commitment to defence” which would be announced during the election campaign.
Budget figures revealed that Australia would not meet the U.S. call to boost defence spending to 3% of GDP, with current funding commitments to reach 2.3% by 2033-34.
In addition to cutting migration by 25% a Coalition government is also planning to boost apprentices and trainees by 400,000, with “targeted and proven incentive payments for employers to hire and train an apprentice”.
Dutton also announced a $12,000 grant payment to small and medium businesses which would support trainees in their first two years of training.
Meanwhile, the latest Newspoll, published 24 March had the Coalition leading Labor 51 to 49 on a two-party preferred basis.
However, voters believe Albanese would make the better Prime Minister on 47 points, ahead of Mr Dutton on 38, with 15% uncommitted.
Australians will go to the polls on 3 May.
