Labor’s proposed intervention into the coal and gas market risks destroying investor confidence and jeopardises supply in the medium to long term, Federal Member for Mallee Anne Webster says.

“After months of inaction and delay the Federal Government’s response to its broken promise of a $275 reduction in power bills is to step towards nationalising our energy industry – certainly on the east coast,” Dr Webster said.

“Meanwhile the Government has set aside $1.5 billion to fund consumer rebates for people on federal government payments but we still don’t have the details of how much support individuals will actually receive – that is the burning question for people in Mallee.

“The Government has had six months to develop a response to this crisis and here they are rushing legislation at the last minute.”

Labor’s intervention includes price caps in 2023 of $12 a gigajoule on uncontracted gas and $125 a tonne on coal in the east coast market.

It will also introduce ongoing controls on gas prices through a mandatory code.

“I’ve heard from businesses across Mallee, from Mildura to Maryborough, from West Wimmera to the Northern Grampians, on just how tough spiralling energy prices are making it for their viability into the future,” Dr Webster said.

“A price cap may appear to help in the short term but will only increase demand because the government has failed to open up supply. This will drive up costs long term, and deeply concerning is the instability for investment.

“We need more supply, not less.”

Dr Webster said investor confidence in Australia had already been diminished by Labor’s proposal.

“Where has the consultation been? Five days from December 10th to 15th is the period Labor have provided. Companies are on record stating these price caps are a significant departure from the open and market based economic policies expected in Australia,” she said.

“We still wait for the details of the Government’s proposal, in the meantime I support targeted and temporary relief for Australian households and businesses suffering through this crisis.

“However the risk of the government taking control of what has and should be a free market industry should worry us all, and will not increase supply by one gigajoule.”