Deloitte’s “Gas Market Transformations – Manufacturing Impacts Report” (July 14 2014) concludes that the price increases for gas that will result from CSG being exported for sale in Asia will have a net negative impact on the Australian economy, and specifically businesses in NSW.
While the gas industry will enjoy an $11B boost, manufacturing, agriculture, construction and other industries will suffer a cumulative $32B drag. NSW is forecast to therefore see a negative economic impact of $21B, along with a share of the 12,000-14,000 projected job losses that the manufacturing sector will suffer Australia wide. The Coal Seam Gas mining industry is an insignificant employer and will go nowhere near making up for the employment losses felt elsewhere, throughout the country.
At a time when the Australian manufacturing industry is already suffering from the withdrawal of major players including Ford and Holden such hits are very unwelcome news.
NSW Greens Spokesperson Jeremy Buckingham summed it up very nicely; “It is unfair that businesses and workers in the manufacturing industry and agriculture should have to suffer so companies such as PetroChina, Petronas (Malaysia), Kogas (Korea), British Gas, Shell (Netherlands), Total (France), ConocoPhillips (USA), Sinopec (China), Santos, and Origin can make large profits through their export LNG consortiums.”