{"id":30800,"date":"2020-09-21T09:24:58","date_gmt":"2020-09-20T23:54:58","guid":{"rendered":"https:\/\/www.aumanufacturing.com.au\/?p=30800"},"modified":"2021-01-14T13:18:43","modified_gmt":"2021-01-14T02:48:43","slug":"grattan-institute-claims-cheaper-gas-prices-would-provide-limited-impact-for-manufacturers","status":"publish","type":"post","link":"https:\/\/www.aumanufacturing.com.au\/grattan-institute-claims-cheaper-gas-prices-would-provide-limited-impact-for-manufacturers","title":{"rendered":"Grattan Institute claims cheaper gas prices would provide limited impact for manufacturers"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Grattan Institute has questioned how beneficial cheaper gas <a href=\"https:\/\/www.aumanufacturing.com.au\/morrisons-gas-fired-electricity-play-damn-the-expense-damn-the-environment\">would be for the manufacturing sector<\/a>, claiming that only 4,000 &#8211; 5,000 jobs on the east coast are in gas-dependent companies, and that the fuel and feedstock represents only 0.5 per cent of the industry&#8217;s total input costs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.theguardian.com\/environment\/2020\/sep\/21\/coalitions-gas-plan-would-help-fewer-than-1-of-manufacturing-workers-report-finds\"><em>The Guardian<\/em><\/a> cites a report by the think tank to be released in November, and which finds under 1 per cent of all manufacturing jobs are at companies that would strongly benefit from lower prices. According to Grattan, two-thirds of all the gas used in manufacturing was at 15 facilities run by nine companies.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">At these gas-intensive manufacturers &#8211; including Incitec Pivot, Qenos and Bluescope &#8212; gas amounted to a tenth of their input costs on average, and supported over 10,000 jobs. However, 6,000 of these jobs were at sites in Western Australia, where prices are about $4 per gigajoule and roughly half of those on the east coast.<\/span><\/p><div class=\"wooco-content\" id=\"wooco-882691488\"><div style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"wooco-370564911\"><a data-no-instant=\"1\" href=\"https:\/\/page.spee3d.com\/download-spee3d-heavy-industry-whitepaper?utm_campaign=Au%20Manufacturing%20Lead%20Gen%202024&#038;utm_source=AuManufacturing_campaign_1\" class=\"adv-link\" aria-label=\"SPEE3D_BannerAds-468&#215;60\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.aumanufacturing.com.au\/wp-content\/uploads\/2024\/02\/SPEE3D_BannerAds-468x60-1.png\" alt=\"\"  srcset=\"https:\/\/www.aumanufacturing.com.au\/wp-content\/uploads\/2024\/02\/SPEE3D_BannerAds-468x60-1.png 468w, https:\/\/www.aumanufacturing.com.au\/wp-content\/uploads\/2024\/02\/SPEE3D_BannerAds-468x60-1-300x38.png 300w\" sizes=\"(max-width: 468px) 100vw, 468px\" width=\"468\" height=\"60\"  style=\"display: inline-block; max-width: 100%; height: auto;\" \/><\/a><\/div><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Tony Wood of the Grattan Institute questioned the possibility of any gas-fired economic recovery.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">\u201cGas prices are unlikely to be very low again, and even if they were low they would not create serious economic stimulus because seriously gas-reliant industries don\u2019t employ many people,\u201d he told The Guardian.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u201cEven if the government is prepared to subsidise the entire industry, that would have limited impact. That would seem an extraordinary proposition, and it doesn\u2019t seem to be going down the path.&#8221;<\/span><\/p><div class=\"wooco-in-content-after-par-6\" id=\"wooco-1357832842\"><div style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"wooco-1510165922\"><a data-no-instant=\"1\" href=\"https:\/\/www.sew-eurodrive.com.au\/home.html\" class=\"adv-link\" aria-label=\"Auman_Second ad within content_Quality, Service+Delivery\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.aumanufacturing.com.au\/wp-content\/uploads\/2024\/03\/Auman_Second-ad-within-content_Quality-ServiceDelivery-e1713733941954.jpg\" alt=\"\"  width=\"468\" height=\"60\"  style=\"display: inline-block; max-width: 100%; height: auto;\" \/><\/a><\/div><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.aumanufacturing.com.au\/chemistry-comparisons-and-complexity\">East coast gas prices<\/a> and <a href=\"https:\/\/www.aumanufacturing.com.au\/australia-has-plenty-of-gas-but-our-bills-are-ridiculous-the-market-is-broken\">market failure<\/a> have long been an issue for <a href=\"https:\/\/www.aumanufacturing.com.au\/gas-prices-could-send-more-manufacturers-offshore-warns-csr-boss\">gas-dependent manufacturers<\/a>.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Leading up to last year&#8217;s May federal election, peak body <\/span><span style=\"font-weight: 400;\">The Energy Users Association of Australia<\/span><span style=\"font-weight: 400;\"> &#8212; with members including\u00a0 <\/span><span style=\"font-weight: 400;\">Incitec Pivot, Brickworks and Bluescope &#8212; warned of<\/span> <span style=\"font-weight: 400;\">\u00a0massive job losses and plant closures<\/span><span style=\"font-weight: 400;\"> in the following 18 months without action on prices, which have since moderated but remain high. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Without action, many thousands of jobs were at risk due to high prices, according to their discussion paper from the time.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Picture: Joe Castro\/AAP<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Subscribe to our free\u00a0<em>@AuManufacturing<\/em>\u00a0newsletter\u00a0<a href=\"https:\/\/www.aumanufacturing.com.au\/subscribe\">here<\/a>.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Grattan Institute has questioned how beneficial cheaper gas would be for the manufacturing sector, claiming that only 4,000 &#8211; 5,000 jobs on the east coast are in gas-dependent companies, and that the fuel and feedstock represents only 0.5 per cent of the industry&#8217;s total input costs.<\/p>\n","protected":false},"author":25,"featured_media":30805,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - 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