Labor narrows minister's powers in controversial gas reservation scheme

Summarised from 2 outlets · Updated 13 Oct, 18:02 · Archive

Labor has curtailed resources minister Madeleine King's discretion over domestic gas reservation requirements after pressure from the gas industry.

Labor has curtailed the resources minister's discretion over domestic gas reservation after industry pressure. Resources Minister Madeleine King will introduce the revised legislation to parliament on Wednesday and announce the changes at the National Press Club. The scheme will limit how much gas exporters can be forced to set aside for the Australian market.

The government has already weakened the original proposal after gas companies objected. A requirement for exporters to reserve 20 per cent of their production for domestic use has become a vaguer obligation of 'up to 20 per cent'. Existing contracts are now exempt from any reservation obligation. The Australian Energy Producers lobby group had called for ministerial discretion to be narrowed, arguing the reservation policy risked crowding out domestic-focused producers and discouraging investment.

Critics including unions, conservationists and business groups say the revised draft legislation still contains significant loopholes. They argue it allows exporters such as Santos to continue prioritising the more lucrative foreign market over domestic users. King says she has also made it harder to game the scheme and ensured states and territories will be consulted on decisions affecting them.

How it is being reported

• Gas lobby gets its wish as Labor changes reserve schemeThe powers of the resources minister to change how much a gas exporter must quarantine for Australian users will be curtailed.Perth Now · 13 Oct, 17:33
• Gas lobby gets its wish as Labor changes reserve schemeThe powers of the resources minister to change how much a gas exporter must quarantine for Australian users will be curtailed.The West Australian · 13 Oct, 17:33

In this story: Madeleine King · Australian Energy Producers · Santos · Australian Industry Group · Australia

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