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Windfall tax not on the cards - Minister

8th June 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Federal Energy Minister Chris Bowen has reiterated that there will be no windfall tax against Australian gas companies amid the current energy crunch.

The Australian Workers Union (AWU) on Wednesday called on the federal government to put a windfall tax on the table to "force multinational gas exporters to give Australian manufacturers access to affordable Australia gas".

The AWU said in a statement that the Australian government needed to follow the UK’s example and prepare a windfall tax on mega-profits, unless affordable gas is made available to Australians.

"Right now multinational gas exporters are using the global situation to cream astronomical mega-profits from Australian gas while forcing Australian factories, smelters and plants to the wall," AWU national secretary Daniel Walton said.

“I’ve had manufacturers telling me they are seeing their gas costs rise by as much $A100 000 a day. It’s insane and it’s unsustainable. Without drastic action we’re going to see thousands of Australian manufacturing jobs lost this year.

“The government should tell the gas exporters it’s fine for them to generate record profits, but they also have to ensure some of those mega-profits are used to help the nation that owns the gas. At every stage in discussions the government should be holding a big stick with ‘windfall tax’ written on it.”

Bowen told the ABC on Wednesday morning that newly appointed Treasurer Jim Chalmers had made it clear that a windfall tax was not on the cards.

“The AMU is 100% right to suggest that we need more investment in storage and transmission and renewables. This is really what’s caused this problem – that we haven’t had the investment we need in renewables and transmission and storage over the last few years. We’ve had a 17% reduction in renewables investment. We’re way underdone on transmission,” Bowen said.

The Minister noted that the newly elected government had been in constant contact with both gas providers and electricity producers, and that the issue facing Australia was not a lack of gas.

“The gas pipeline from Queensland to southeast Australia is currently working at 100% capacity. I mean, you couldn’t get more gas into the system if you tried as a result of the policies and the actions that we’ve taken,” Bowen said.

The Minister earlier this week noted that the current power crunch stemmed from coal-fired power station outages, some of which had been planned, while some were unplanned.

Bowen on Wednesday met with the Energy Ministers from all the states and territories to discuss what he termed "meaty issues" around the powers of regulators, and issues around information, as well as around better planning and integration of the investments needed into future energy supplies.

Ahead of the Ministerial meeting, Queensland Energy, Renewables and Hydrogen Minister Mick de Brenni said that more renewables were the cheapest method of resolving the impacts of the global market and when matched with local manufacturing, could deliver Australia much needed energy independence.

“While all options are on the table for consideration at the EMM, Queensland will continue to promote policy responses that support our record on delivering new, cheaper and cleaner generation into the market,” De Brenni said.

“The formula we are following to keep downward pressure on power prices focuses on connecting more renewables and back-up storage to our grid.

“We are scheduled to deliver at least another 10 solar, five wind farms, three large-scale batteries and one pumped hydro scheme by 2024. By the end of 2024, this project pipeline will add more than 1 700 MW of wind, 1 363 MW of solar and at least 300 MW of storage into Queensland’s energy system.

“Queensland will also maintain its advantage by owning its power assets, so we continue to return the dividends to Queenslanders, like the recent A$175 Cost of Living rebate.”

Edited by Creamer Media Reporter

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