Fears high cost of energy could run companies into the ground

Industry has pleaded with politicians to elevate high energy costs to an election issue or many companies face the very real prospect of going out of business. KEEP UP TO DATE WITH THE TELE ELECTION PODCAST.

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Industry has pleaded with politicians to elevate high energy costs to a key election issue or many companies face the very real prospect of going out of business.

Cutting energy bills was front and centre of the election campaign last month but since then both sides of politics have gone silent on a major concern that affects every voter.

Statistics from the Australian Energy Regulator show retail electricity prices rose 56 per cent in the 10 years to June 30, 2018, and gas prices rose 46 per cent over the 10 years to June 30, 2017.

During February both the Coalition and Labor announced their own solar energy and battery policies to help ease the financial pain for consumers, promising hundreds of dollars in savings.

Electricity prices have risen 56 per cent in the 10 years to June 30 2018.

But there are warnings the high cost of gas could run some big companies into the ground.

The future of Qenos — Australia’s only producer of polyethylene, a plastic used to make milk bottles, water tanks, pipes and packaging — is under threat due to our high wholesale gas prices.

Since 2010 prices have risen from about $3 per gigajoule to $12 per gigajoule — a price point that is becoming harder and harder for manufacturers to pay.

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Qenos chief Stephen Bell said rocketing gas prices in NSW already forced him to cut his workforce by 15 per cent in 2017, and more cuts could be on the way if new gas is not extracted domestically.

“In order to stay competitive, manufacturers need competitively priced gas. LNG import terminals are not the answer, they will only put a floor under gas prices, not a cap,” Mr Bell said.

Qenos CEO Steve Bell said he has already been forced to cut his workforce by 15 per cent and more could be on the way. Picture: Liam Driver

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The price of polyethylene is set by international markets, meaning Qenos — which has a facility at Port Botany — cannot increase its prices to customers even when its own operating costs go up. Mr Bell said it was puzzling for NSW to import about 96 per cent of its gas needs when it has plenty of gas reserves that remain untapped.

“There is more than enough gas for both domestic users and export, the problem is that it is not being developed,” Mr Bell said.

“Australia has an abundance of gas reserves, and the viability of manufacturing businesses like Qenos requires the development of more local gas at a competitive price to sustain these local jobs.”

DALEY FAILS TO TEACH A BOLD DOG NEW TRICKS

NSW Labor leader Michael Daley was joined on the campaign trail on Monday by Ellie the golden retriever, who happily posed with a Labor placard in her mouth … before ripping it up in front of the cameras.

After announcing he would hire an additional 5,065 teachers over the next four years at Lapstone Public School, Mr Daley was coaxed into a series of photos with the adorable dog.

NSW Opposition Leader Michael Daley was making a teaching announcement when a golden retriever ripped up a Labor poster. Picture: Toby Zerna

The pup wasn’t too patient as the media took photos. Picture: Toby Zerna

Ellie started strong with a big smile but quickly who lost patience with the time the media was taking to get its footage, promptly ripping up the placard.

“We waited thirty seconds too long taking the pictures,” Mr Daley said with a laugh.

The teaching policy includes literacy and numeracy teachers as well as specialised education teachers, who will be sent to schools in need by the Department of Education.

Elsewhere Premier Gladys Berejiklian on Monday doubled down on the Coalition’s pledge to invest $120 million in expanding the hours of before and school care for working families. She then met with Prime Minister Scott Morrison, who promised to commit $3.5 billion towards the North South rail line in the wake of a $2 billion funding announcement from the Berejiklian government.

Originally published as Fears high cost of energy could run companies into the ground