The Australia Institute

released 23 July 2020

Subsidising the gas industry is a very poor option for stimulus and recovery spending. It would provide few jobs and would not bring down energy prices. There are many electrical alternatives to gas for manufacturing that are far cheaper than gas. Covid 19 recovery spending provides a once in a generation opportunity to electrify our manufacturing industry to permanently reduce energy costs. Locking in gas for manufacturing on the basis of a temporary fall in prices will undermine Australian manufacturing for decades to come.