Anxiety over rising energy costs have replaced concerns about skills and talent attraction for Geelong manufacturers, as we head into the second major election for this year, the Victorian State election on 26 November.
GMC invited views from 20 CEOs at a Geelong Manufacturing Leaders’ forum recently and found that affordable and reliable energy was top of mind.
“We are facing down skyrocketing energy costs of more than 50 per cent. That is going to have a severe impact on future growth and jobs for manufacturing,” one large Geelong manufacturer told the GMC.
The Federal Budget, handed down by Treasurer Jim Chalmers on 25 October, forecasts electricity prices will increase by 56 per cent over an 18-month period, with gas prices up 44 per cent.
While reducing emissions and improving sustainability continued to be among priorities for manufacturers – and increasingly provided new opportunities for the sector – GMC CEOs agreed that prospects for Australian sovereign control of industry diminished with every energy price hike.
Interventions have been flagged by the Federal Government, including more control of gas markets such as reserving natural gas, currently destined for export, for domestic use.