The Australian Workers’ Union wants an immediate gas reservation and more intervention in the gas market from the federal government.

This is a pretty big deal. For a long time, there was the belief that the gas companies needed to be babied to ensure that manufacturing would receive its due. But that is obviously not the case and the unions are now making sure their voice (and case) are heard.

The AWU has submitted a proposal to the gas market review the federal government has set up “demanding an immediate east coast gas reservation scheme that would apply to all three Queensland LNG exporters from day one”

And that includes EXISTING has fields.

AWU National Secretary Paul Farrow said the time for half-measures was over:

Because of a series of weak and stupid decisions by Australian governments during the
late 2000s and early 2010s foreign gas giants operating here have been gifted the sweetest
deal out of anywhere in the world,” Mr Farrow said.

“They’ve been able to pump our gas out of the ground and simply flog it to the highest
foreign bidder without restriction. These multinationals should be kissing the boots of
every Australian taxpayer for the run they’ve had over the last ten years. But it’s time for a
fairer deal.”

“The idea [gas companies] will pack up and leave if we tighten the rules is a bluff. Why would they walk away from billions in profits? Of course they’ll cry wolf – I’d cry wolf too if I was dealing with
a patsy like Australia who has fallen for it every time,” he said.

“The government’s job is to stand firm and make sure Australians get a fair return, not cave
to empty threats. I represent workers in the gas extraction industry and I unashamedly
support the industry’s future in Australia. These workers are my members. I don’t want
them to lose their jobs, and I know they won’t.”

Among the AWU’s submission is:

• A requirement for LNG exporters to supply a fair portion of domestic demand
• Rules deducting third-party gas purchases from LNG exporters’ local supply
  commitments – ensuring they don’t rob Peter to pay Paul
• A ‘baseline-credit’ system, allowing producers who exceed their domestic supply
  obligation to trade credits with those that fall behind
• Powers for government to set prices for industrial users if market dynamics threaten
  manufacturing viability