The Queensland timber industry has welcomed the LNP’s election policy commitment for cheaper energy for manufacturing. LNP Leader Deb Frecklington this week announced the cheaper energy policy for manufacturers, which would remove the need for Ergon and Energex to charge manufacturing businesses a rate of return on electricity provided through the distribution networks. They estimate this would reduce fixed connection costs and usage tariffs for manufacturing by around 20%. Source: Timberbiz
Timber Queensland Chief Executive Officer, Mr Mick Stephens said this measure would be welcomed by the hundreds of businesses in timber manufacturing and wood products fabrication who employ thousands of Queenslanders across the state.
“Energy costs, and transmission costs in particular from so-called gold-plated networks, have been a high cost-impost on timber manufacturing for some time. Providing a more realistic energy price would improve the competitiveness of the industry and generate a more positive investment environment,” Mr Stephens said.
“Reducing energy transmission costs from State-owned utilities was a specific ask in our election policy plan released on 25 September.”
The Premier Anastasia Palaszczuk also announced an agreement to underwrite the CopperString project in north Queensland. This project proposes to install additional power transmission capacity and connection to the national grid which can create opportunities for reduced power prices.
“We would welcome any cheaper power outcomes from this project, particularly for north Queensland timber businesses. However, we also recognise that the LNP state-wide transmission cost measure would provide a direct and immediate benefit for timber manufacturers,” said Mr Stephens.
“Over the coming month, we look forward to discussing and hearing in more detail from the major parties and other candidates on how they can help support and grow the forest and timber industry, which generates almost $4 billion in value each year and supports 25,000 jobs.
‘We believe the industry could generate an extra $300 million in annual output and generate an additional 2000 jobs with the right policies in place.”
Queenslanders go to the polls on 31 October.
