The government has been keeping the industry busy with requests for comments on legislation, plans for a bulletin board system which lists spare capacity as well as the intense work on the Government Market Leaders Group which is considering setting up a shortterm gas trading market.
In his address to members and guests at the APIA Melbourne lunch Mr Macfarlane thanked APIA’s members for their contribution to the work on the new National Gas Law. The Minister said he was determined to ensure that the legislation would not be detrimental to the pipeline industry and noted that the government’s aim is to ensure that the industry invests in critical infrastructure.
However, while the Minister commented that the new process would “simplify the system”, APIA remains of the view that the simplifying is for the bureaucracy rather than for industry. Already, the government has made major changes to its proposed legislation.
“The consultation process demonstrated we need to do significant work to get the policy detail right and to give industry and other stakeholders the legislation they deserve,” Mr Macfarlane said.
“I want to thank APIA which has been instrumental during these consultations in helping policymakers get the detail right. APIA’s voice was a catalyst for officials looking into how the legislation can address the need for appropriate investment incentives for the expansion of existing pipelines.
“These incentives are at the heart of our objective to increase the penetration of natural gas and I can appreciate there are millions if not billions of dollars of investment at stake over the coming decades.”
Mr Macfarlane also indicated his support for light-handed regulation of gas transmission pipelines and his belief that natural gas will increasingly be used in power generation.
The Minister also outlined the Federal Government’s plans for a national carbon emissions trading scheme.
“By 2012, Australia will have in place a world-leading national carbon emissions trading scheme. The scheme will be a world-best practice model for other countries and will revolutionise the way we tackle climate change,” Mr Macfarlane said.
He said such a scheme would change the structure of the energy market, and more importantly, would change the structure of our nation’s economy, but industry views would be sought in the development of the scheme.
“The views of the gas industry, as a critical part of Australia’s energy mix now and into the future, will always be sought after and respected.”