Australian Manufacturers Group Amid Rising Concerns Over Burgeoning Gas Exports
Published By : 28 Jul 2014 | Published By : QYRESEARCH
Australian manufacturers are requesting the government to intervene in the matter of the rapid growth of gas export industry following the release of a report that predicts that rise in gas prices could result in a loss of nearly 120 billion dollars due to manufacturing production losses by 2021.
The report named, Deloitte Access Economics, was developed in collaboration with the Australian Industry Group and other major manufacturing bodies of the country so as to forecast the impact of the burgeoning gas exports from the country on Australian manufacturers.
The report predicted that the hike in gas prices, caused as a result of increasing rates of gas exports, could bring painful consequences to the manufacturing industry.
In one scenario, the report estimated that the ongoing crisis would result in the reduction of manufacturing output by nearly 120 billion dollars by the end of 2021. Also, nearly 15,000 jobs would be lost.
While the report also predicted an overall good growth in the country’s GDP, the equation between benefits and costs seem very unevenly spread across various regions and market sectors.
In a statement, the Manufacturers Australia Group mentioned that the findings of the result recall findings from a previous study that mentions that significant LNG exports from country’s east coast were producing hindrances in supply chain, provisioning dysfunction of market and raising prices.