Greek-Australian chief of American manufacturing giant Dow Chemical Company, says Australia lacks long term strategies to deal with opportunities presented with the rise of the Asian market, despite energy being the lifeblood of the nation’s economy.
During a visit to Australia last month, Mr Liveris, who was keynote speaker at Prime Minister Julia Gillard’s jobs forum last year, said that the nation needs to allow domestic manufacturers to take advantage of the nation’s energy resources. He claims Australian manufacturers are being disadvantaged by price rises as gas producers seek higher profit returns in overseas markets.
Mr Liveris suggests Australia takes on a “use it or lose it” approach to energy reserves, with holders of rights to reserves should be required to use them within a “sensible time frame”. He also says incentives should be implemented to encourage energy producers to target local industry.
However, not all industry leaders agree with this approach. Australian Petroleum Production and Exploration Association chief executive David Byers, telling The Australian that “Mr Liveris is advocating a form of protectionism that is not in Australia’s long-term interests: forcing gas producers to subsidise the development of other industries.”
The DomGas Alliance supported Mr Liveris’s concerns that Australia was losing its energy advantage. DomGas wants the policy of reserving 15 per cent of gas supplies for domestic use, which applies in Western Australia, extended to include the east coast.
