Kennedy MP Bob Katter warns government to get the details right on gas reservation scheme

Outspoken Kennedy MP Bob Katter has tentatively backed a wholesale review of domestic gas policy, but warned regional towns could be wiped out if the government gets it wrong.

Member for Traegar Robbie Katter, Mt Isa Mayor Peta MacRae and Member for Kennedy Bob Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

Kennedy MP Bob Katter has urged the federal government to brush off concerns from major industry players and implement a domestic gas reservation policy - despite warning the devil will be in the details.

Climate and Energy Minister Chris Bowen flagged on Monday that the government would look at all aspects of national gas policy, in what Mr Bowen described as a “holistic review”.

An east-coast reservation scheme - a policy proposed by Peter Dutton during the election - is one of the aspects set to be considered.

“It is important, if there is new supply, that Australians have a chance to get access to it,” Mr Bowen said.

“New supply, wholly for export, will not help Australia’s domestic gas needs. New supply with appropriate standards to ensure Australians get access, obviously, will potentially play a role.”

Mr Katter on Wednesday broadly lent his backing to the move, but warned the government to get the details right.

Member for Traegar Robbie Katter, Mt Isa Mayor Peta MacRae and Member for Kennedy Bob Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

“A devil is often in the detail – and we haven’t seen that yet with this proposed review into the East Coast Gas Reservation scheme. While this announcement appears to be very positive, it may change, and my position may change on it,” Mr Katter said.

He also pointed to Mount Isa, warning that the regional industry centre would find it impossible to survive without downward pressure on gas prices.

“The copper smelter, the copper operations, the dozen copper mines, the silver-lead-zinc plant, make Mount Isa the third biggest industrial centre in this country, just behind Newcastle and Gladstone,” he said.

Member for Kennedy Bob Katter and Member for Traegar Robbie Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

“The complete collapse of Mount Isa’s industrial base was imminent last week. The dominoes were already falling. Mount Isa pulls 3,000 jobs directly out of Townsville and fuels billions in industrial exports. If it goes under, it’s not just a local issue – it’s a national one.

Mr Katter said the review should look to Western Australia - a longstanding beneficiary of a gas reservation policy, for tips on how to make it work.

“We are paying up to $16.60 for a unit of gas in Mount Isa, while the Americans and Russians are paying $5 US. It’s impossible to survive or compete under those conditions. Give us RRP and we go forward. Deny us, and there will be a collapse,” Mr Katter said.

“Here, we’ve got a fertiliser plant in Mount Isa that alone can bring in a thousand million dollars in a good year. And we’re hanging by a thread.”

Originally published as Kennedy MP Bob Katter warns government to get the details right on gas reservation scheme