Industry News

The Victorian Government has released an update to progress being made to the state’s public service reforms under its Sustainable Government Initiative (SGI).

Under the SGI, the state expects to reduce the public service workforce by 3.600, while achieving improvements to operations through the Better Services Implementation Taskforce.

In the SGI update, the Government announced:

• VPS numbers have already been reduced by 910 through attrition and non-renewal of fixed term contracts since December;
• Applications have been made to the Australian Taxation Office for 2,600 VDPs across government departments and agencies;
• Departmental secretaries would be informing their staff about departments' allocation of the 3,600 SGI headcount reductions.

"The Sustainable Government Initiative will be achieved over two years in administrative and back office roles through natural attrition, a freeze on recruitment, the lapsing of fixed term contracts and a Voluntary Departure Packages (VDP),” Premier Ted Baillieu said.

The agencies and departments affected by the cuts are:

The University of Melbourne has been awarded more than $900,000 in Federal funding to develop Australia’s first open source renewable energy model, Minister for Resources and Energy Martin Ferguson announced this week.

The new model will help researchers better understand and simulate the country’s demand for renewable energies and will help experts design electricity systems for the future.

The project will be led by University of Melbourne researchers Dr Roger Dargaville, School of Earth Sciences, and Assoc Prof Michael Brear, School of Engineering and the University’s Melbourne Energy Institute.

Dr Dargaville said designing a cost effective and reliable low carbon national energy system was a significant challenge, combining renewable and traditional energy generation technologies, transmission networks and economics.

“The model will examine if the current regulatory system can cope with a high penetration of renewable energy, and what new policies may be required to enable the transition to a low carbon economy,” he said.

He said the model will help answer a series of questions of not only where the best locations for each technology are, but which combination of technologies at which locations minimize variability across the systems, maximize system stability, minimize new transmission lines and keep backup systems as small as possible. 

“The open source element of this project makes it unique and a well overdue addition to the toolbox for energy researchers in Australia to simulate our National Energy Market, “ he said.

He said the Melbourne Energy Institute helped bring together the broad range of disciplines required to tackle the challenge of designing the energy system of the future.

“The Institute has facilitated collaboration among researchers from science, engineering, mathematics, economics, arts and law to build this ambitious proposal,” he said.

Collaborators on the project include Assoc Prof Iain MacGill of the University of NSW, Centre for Energy and Environmental Markets, Australian Energy Market Operator, the Bureau of Meteorology, the Victorian Department of Treasury and Finance, General Electric and consultants Market Reform.

Legislation has been passed in the Federal Parliament to create the Australian Workforce and Productivity Agency (AWPA).

The Agency, to be led by industry representatives, will have a key role in the allocation of a $700 million industry training fund.

The Minister for Skills, Senator Chris Evans, said the new Agency marks a significant development in the partnership between industry and Government.

"The Agency is an extension of Skills Australia and will improve long-term workforce planning and development, address skills and labour shortages and contribute to improved industry and workplace productivity," Senator Evans said.

A key role of the Agency will be to set priorities for, and provide oversight of the $700 million National Workforce Development Fund which has been established to support industry to develop and improve the skills of their employees.

The NWDF is providing $700 million over five years to support businesses who want to up-skill and re-skill new and existing staff in priority industries and occupations.

"Putting industry at the heart of the system means we are not training people for training sake - we are training people for jobs. This is a fundamental difference from the traditional supply side system where an individual selects the training package they want," Senator Evans said.

"This fundamental reform ensures that the Government is training people in the skills that employers and economy needs.

"With industry co-investment, the NWDF will deliver training to 250,000 Australian workers.

"The Agency will be recognised as an authority on workforce development policy, research, advice and will direct skills funding to industry needs."

The Government will provide $25 million over three years to establish the Australian Workforce and Productivity Agency. This is in addition to the current Skills Australia budget.

The Fair Work Ombudsman has highlighted the fact that employees who sign written contracts are still covered by the minimum conditions in the relevant award and the National Employment Standards.

“A contract can’t make employees worse off than their minimum legal entitlements.

“This means that the entitlements in the National Employment Standards (the NES) and any award or agreement keep applying, even if the employee has signed a contract that gives them less.

“For example, if an employee signs a contract of employment that says they get 5 days of sick leave per year, they’re still entitled to 10 days paid personal/carer’s leave (which includes sick leave) as provided in the NES. If the award they’re covered by has more, then the award applies instead of the NES.”

More information is here

The future challenges and strategic opportunities for the rail supply industry are explored in a new report by ANU Enterprise, the commercial arm of The Australian National University.

The report, On Track to 2040, was carried out by ANU Edge, part of ANU Enterprise Consulting, and released by the Minister for Industry and Innovation Greg Combet.

The report identifies 18 priority opportunities for technology development in three main areas – materials and manufacturing, monitoring and management, and power and propulsion.

The report also makes strategic recommendations in six areas: governance, standardisation and regulation, funding, collaboration, research and policy.

“These recommendations represent the most important actions to be taken by the industry in achieving the industry’s vision of collaboration, innovation and growth,” Director of Industry and Government at ANU Enterprise Tom Wood said.

“We’ve been working with industry, government and research teams to develop a strategic plan for the rail supply industry to gauge how it can position itself and build on its competitive advantages to meet the challenges and the opportunities over the next 30 years.

“The rail industry stretches back more than 100 years. Today there are around 330 companies with 15,000 employees engaged directly in rail, so it’s a significant manufacturing sector and the opportunities to expand are large. A challenge will be trying to remain competitive globally.”

Project leader Dr Matthew Doolan said there are a wide range of reasons to address the future of the rail industry.

“There are the obvious factors such as increasing population pressures, congestion in cities and the need to move more people around. But there’s also the interest in high speed rail, with the opportunity to connect the eastern capitals, and now with the mining industry, there’s a huge need to move bulk resources from the interior of Australia to the ports, where we can send it overseas,” Dr Doolan said.

“We looked at technologies and capabilities in Australian manufacturing that could be used to meet global commercial opportunities, and we also looked at opportunities where rail links with other areas of strategic capability for Australia, such as natural resources.”

ANU Edge delivers knowledge services informed by the world-class research and practice at The Australian National University and is dedicated to the application of university research and knowledge excellence to satisfy real-world needs.

The project was conducted in collaboration with the University of Cambridge-based Institute for Manufacturing, the CRC for Rail Innovation, and Strategic Connections Group.

A copy of the report is available here.

David Jones has announced the appointment of Susan Leppinus as Company Secretary and General Counsel, effective from 10 July 2012.

Ms Leppinus has eight years experience as a company secretary and general councsel, working with boards of directors and senior management  in publicly listed companies. Her most recent appointment was with Crane Group.

The Australian Food and Grocery Council has announced the appointment of Gary Dawson as the group's new Chief Executive Officer. Mr Dawson will begin his role at the end of July.

Chairman of the AFGC, Mr John Doumani, congratulated Gary on his appointment from a field of high calibre candidates.

“Gary brings tremendous experience and proven success at senior executive levels in both the public and private sectors, with a career spanning media, politics and business. Importantly, he also has experience in an Industry body, having worked as Director of Communications at the NSW Law Society.

Mr Dawson comes to the AFGC from Thales Australia where he is the senior executive in charge of corporate affairs, communications and strategy.  Prior to this he filled a similar role at the ABC, managing strategy and communications.

Mr Doumani also paid tribute to the leadership provided by Acting Chief Executive Dr Geoffrey Annison.

“Geoffrey is a great asset to the AFGC with tremendous knowledge of our industry and commitment to its ongoing growth.  The Board thanks him for providing steady leadership to the organisation until Gary’s arrival, and we are delighted that Geoffrey will continue as Deputy CEO beyond that date.”

Accountants and auditors should recognise that a company's culture and 'tone at the top' can have a profound impact on operational safety, risk-taking, and ultimately, financial position, according to Professor Russell Craig, Head of Victoria University's School of Accounting and Finance, and his co-researchers.

In a paper published in the New York State Society of CPAs in the CPA Journal, Professor Craig, Professor Joel Amernic (University of Toronto), and Professor Dennis Tourish (Royal Holloway, University of London), argue that a company's corporate culture – and its impact on safety operations – must be assessed and given due acknowledgement if audited financial statements are to be fair and accurate.

Using BP's 2010 Deepwater Horizon oil spill as a case in point, the researchers say that auditors should broaden the notion of what an audit is, so that operational risks generated from a company's culture and management tone are factored into potential liabilities.

The researchers present evidence to suggest that BP's 'tone at the top' and corporate culture (and consequently its management and operational systems) were dysfunctional. Not only did the company have a poor safety record, but another disaster appeared almost inevitable.

"A close examination of BP's tone at the top and consequent culture reveals a h­igh likelihood that a major man-made safety-related disaster would befall BP every few years...[Yet] no acknowledgement of the company's susceptibility to disaster was included in the company's financial reports or was identified by conventional auditing procedures," the paper notes.

"In such circumstances, in the interests of fairness of presentation, we submit that a provision for disaster should have in fact been made in the accounts."

The absence of a "provision for disaster" in BP's financial statements – one that would take into account the array of environmental and legal costs that would follow a future major disaster – meant that BP's audited financial statements did not comply with the  "fairness of "presentation" objective outlined in International Financial Reporting Standards (IFRS), the researchers argue.

Professor Craig said that while it would have been impossible for BP to predict which of its operations would be the site of a future disaster, "there was a strong case that a liability existed and was growing by the year".

If financial statements are to be the fair presentations that they claim to be, he said, auditors needed to take a more holistic approach and scrutinise more than just the numbers.

"These things have an impact -- a corporate culture that over-values cost-cutting to the detriment of safety will more than likely have financial consequences down the line -- so they should be taken into account by auditors if the provision of fair and accurate financial statements is the goal," Professor Craig said.

The Federal Government has passed legislation containing key tax measures through Parliament, including the Tax Laws Amendment (2012 Measures No. 1) Bill 2012, Tax Laws Amendment (2012 Measures No. 3) Bill 2012 and Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2012.

"These measures will make taxation of employment termination payments fairer by scaling back concessions for certain payments, such as large 'golden handshakes' typically received by senior executives as part of their overall remuneration. The existing concession will be retained for payments related to hardship, namely redundancy payments, compensation for employment-related disputes, and payments for invalidity or death," Assistant Treasurer David Bradbury said.

"They will also ensure that Clean Energy Advances paid to veterans and other recipients of household assistance will not be subject to income tax, and that people on low-incomes with no tax liability will not have to pay the Medicare Levy."

The Government has also introduced the Tax Laws Amendment (Managed Investment Trust Withholding Tax) Bill 2012 to give effect to the change to the withholding tax rate proposed in the 2012-13 Budget.

A new way of performing PET scans on laboratory rats that are in motion has been developed at the University of Sydney,  making possible new experiments linking brain and behavioural function.

The technology developed by researchers at the University of Sydney's School of Physics and Brain and Mind Research Institute was reported in the Journal of the Royal Society Interface on 20 June.

"Animal imaging such as positron emission tomography (PET) is almost always performed using anaesthesia to keep the animal still because any movement prevents useful three-dimensional PET images from being reconstructed," said Andre Kyme, who did the research as part of his PhD under the supervision of Associate Professor Roger Fulton from the Faculty of Health Sciences, and as part of the National Imaging Facility.

Even a small amount of motion results in images becoming blurred and prevents useful conclusions about the process being studied.

"Anaesthetising animals is a problem for two reasons: anaesthetic drugs can change what's measured in the brain, and having the animal asleep prevents us from being able to image what's happening in the brain while the animal is fully responsive and able to behave normally," Andre Kyme said.

The non-invasive new method used by the researchers involves tracking an animal's head motion at 30 frames a second then correcting for the motion so that the PET scanner is 'unaware' that the animal moved.

The rats "wear a marker on their heads tracked by two cameras linked to a computer, which then processes the movements and accounts for these in the PET scan. The researchers showed the system could be used to track the head of a rat while their body was kept still in a tube inside the scanner, or as it was free to move around a small box designed to fit in the scanner."

The study provides evidence that rats which are awake and unrestrained, especially those able to behave normally, can have their motion tracked relatively simply and inexpensively. The conclusion is that compensating for the motion of awake rats, even those which are completely free to move and behave normally, is now viable.

"All the data collected is adjusted, based on the motion we've measured, so that useful 3D images can be reconstructed. Many powerful experiments to study brain function and correlate it with animal behaviour become possible if animals can be imaged while awake and unrestrained," Kyme said.

"For example, suppose we wanted to study which parts of the brain were most active when an animal was performing a specific task, or compare brain function with and without social interaction - these things are currently not possible using PET. The study of diseases such as Parkinson's and schizophrenia are among the areas of mental health which could potentially benefit.

"It is widely accepted amongst researchers that being able to study an alive and awake animal through imaging would be a great milestone. We're trying to enable data from animal imaging to be more useful and more powerful than it has been, and better able to translate what's happening in the animal to humans in the clinic."

The Federal Government has introduced legislation before parliament that will amend the income tax law which contain the first two elements of the Investment Manager Regime (IMR).

The legislation is a key recommendation of the Australian Financial Centre Forum, Australia as a Financial Centre, Building on our Strengths report aiming at making Australia a more attractive destination for investment while encouraging further employment in the financial services sector.

"This bill will provide foreign managed funds and their investors with greater certainty as to the tax treatment of certain income of the fund and further the Government's goal of establishing Australia as a regional financial centre," Minister for Financial Services Bill Shorten said.

This bill will exclude from Australian tax certain income for the 2010-11 and earlier income years of widely held foreign funds which have not lodged a tax return and have not had an assessment made of their income tax liability.

This bill constitutes the first two elements of the IMR, which are designed to;

• address the impact of the application of US accounting rules - widely referred to as 'FIN 48' -on managed funds investing in or through Australia
• exclude from Australian tax, for 2010-11 and later income years, certain income of widely held foreign funds that is taxable only because the fund uses an Australian based agent, manager or service provider
• remove uncertainty as to the tax treatment of 'conduit income' of managed funds as recommended by the Henry review.

The IMR bill was developed after two rounds of exposure draft legislation, including extensive consultation with industry and investors - both domestically and in international financial centres.

"This is a complex area of policy and the Government is determined to ensure that the legislation achieves its goal of improving Australia's standing as a financial services centre through greater certainty and transparency," Mr Shorten said.

"The bill is a further step in the Gillard Government's commitment to building Australia as a financial centre. The Government will continue to consult with industry in the development of the third element of the IMR."

Australian researchers have found biomarkers in the blood that could help develop a test to identify people in the early stages of Alzheimer’s disease.

University of New South Wales School of Psychiatry Professor Perminder Sachdev and his team looked at apolipoproteins, which transport cholesterol in the blood, and found they were dysregulated – or abnormal – in patients with mild cognitive impairment. The research findings are published in the journal PLOS ONE.

“Essentially, this is one step towards developing a suite of biomarkers to include a number of different proteins that will identify individuals with mild cognitive impairment who will probably go on to develop Alzheimer’s disease or dementia in the future,” Professor Sachdev says. 

Evidence suggests these proteins are involved in Alzheimer’s disease and some other brain diseases, Professor Sachdev says.

The researchers examined the group of apolipoproteins in the blood of more than 1,000 study participants over a two-year period. About half of the group also had Magnetic Resonance Imaging brain scans and were rated according to their cognitive impairment.

“Apolipoproteins have been of interest in Alzheimer’s disease for a number of reasons,” Professor Sachdev says.

“It is know that one variant of the gene for one type of apolipoprotein, Apo E, increases the risk of Alzheimer’s.  Another of these proteins, Apo J or clusterin, has been found in the brain lesions of people with Alzheimer’s. 

“We found abnormal levels of clusterin but also some other apolipoproteins in the blood of older individuals with memory problems, and these levels tended to predict who showed worsening of their mental functions over two years.”

As early indicators of cognitive decline, these apolipoproteins may also become targets of treatment or preventative healthcare measures, the authors say.

A new research centre established in a partnership between universities in Beijing and Perth will investigate media and communications management in Australia, China and across the Asia Pacific region.

The Asia Pacific Centre for Media Economics and Communications Management Research will be based at both Murdoch University and the Communication University of China (CUC), allowing academics from both institutions to forge collaborations and undertake comparative investigations with greater ease.

The centre’s co-director, Associate Professor Christine Daymon from Murdoch’s School of Media Communication and Culture said researchers would probe issues like media governance and policy, managing media organisations, political and marketing communication and cross-cultural learning.

“The influence of Asian countries on global economics and politics is growing, and China is a very important partner economically for Western Australia in particular,” she said.

“A lot of economic, political and cultural reorganising is taking place in the region with many countries now on a consumption-driven growth path. To some extent, these reforms are driven by a relatively transformed and liberalised media sector. How this operates and is managed in Asian societies which are undergoing restructuring is the focus of our research.

“The collaborative nature of the centre will allow us to compare both Asian and Australian perspectives on important issues related to managing the media in both regions with researchers able to offer valuable new insights that will potentially be applicable globally.

“To date, most knowledge about the media comes from Western traditions and we are keen to change this.”

A/Prof Daymon said that Murdoch had developed links with the CUC in recent years via its cohorts of postgraduate students who had studied in Perth on Murdoch’s MA Communication Management course.

It is hoped the collaboration will allow more postgraduate students from both universities to study in Masters and doctoral programs at both institutions. It is also hoped the centre will assist with professional development for staff at both universities.

The centre is associated with Murdoch’s Asia Research Centre and researchers are drawn from Murdoch’s School of Media Communication and Culture, its Business School and CUC’s School of Economics and Management.

Vice-Chancellor Professor Ian Young has announced the appointment of 13 new Public Policy Fellows from around the University.

He said the new Fellows brought wealth of public policy expertise to the table.

“The Public Policy Fellows program acknowledges people who are making significant contributions to public debate in areas as diverse as the economics of water, higher education and Asia-Pacific cooperation, human rights law, epidemiology and population health, and translation psychiatry,” he said.

“The program highlights the depth and breadth of expertise across the University and beyond, on matters of considerable public importance.”

The new Fellows include Professor Gabriele Bammer, Professor Emily Banks, Professor Alison Booth, Professor Bruce Chapman, Professor Helen Christensen, Professor Peter Drysdale, Professor, Quentin Grafton, Professor Shirley Gregor, Professor Kathy Griffiths, Professor Penelope Mathew, Professor Kim Rubenstein, Professor Veronica Taylor and Professor Margaret Thornton.

Funding for a new program to manage researcher access will enable continuation of the Australian Synchrotron.

The program will be managed by Monash University with the support of the Federal Government's investment of $30 million. Australian universities will also invest around $25 million.

Announcing the funding, Science and Research Minister Senator Chris Evans said the unique properties of synchrotron light provide experimental research results that are more accurate and clear than those obtained using traditional laboratory equipment.

.

"That is why it is vital Australian researchers have access to a synchrotron in their own backyard," Senator Evans said.

The new program follows an announcement in March this year of a $100 million agreement between the Australian and Victorian Governments to secure the future of the Synchrotron. This was in addition to earlier Commonwealth commitments of more than $114 million to the facility since 2006 and contributions from the Victorian Government of more than $207 million.

"The Gillard Government is enhancing Australian researcher access to the facility to ensure Australia builds on its world-class reputation and addresses the big questions facing the 21st century,” Mr Evans said.

"Under the Synchrotron Initiative, Monash University will implement a peer‑reviewed, merit-based program to ensure Australian and overseas universities and medical research institutions benefit from synchrotron access over the next four years.

"The Australian Government is ensuring Australia's best minds have access to world class facilities."

This $30 million Government investment is being provided by the Australian Research Council ($25 million) and National Health and Medical Research Council ($5 million). The NHMRC previously funded the development of a medical beamline on the Synchrotron. This additional funding will help ensure the beamline is fully utilised.

Senator Evans said with the strong need to undertake R&D to transform industries and see them through challenges such as climate change, economic change and skills shortages, there has never been a more vital time to invest in the facility.

"As the Australian Synchrotron can be used to study the most precise nature of any biological and industrial material, it can be used by almost any industry across a wide range of research fields."

Federal Minister for Employment and Workplace Relations, Bill Shorten, has met with employers in Melbourne to discuss ways to boost diversity in the workplace, particularly with an aim of boosting participation rates amongst those with a disability.

" Today’s discussion is part of the Gillard Government’s program of initiatives for employers to support people with disability, mature age, the very long term unemployed, people from culturally and linguistically diverse backgrounds and indigenous Australians, find employment and stay in employment," Mr Shorten said.

“To remain competitive, and to attract and recruit the people they need, employers must keep up with change."

The forum will include a panel discussion led by Jenny Brockie, with panel members including Mr Peter Anderson, Australian Chamber of Commerce and Industry, and Ms Julie Bisinella from ANZ.

Mr Shorten also attended the launch of the Australian Chamber of Commerce and Industry guide Employ Outside the Box: the Business Case for Employing People with Disability, which outlines the advantages that employees with disability bring to business.

The forum is part of the Federal Government’s Building Australia’s Future Workforce package, a $3 billion investment over six years to deliver the skilled workers the economy needs and ensure more Australians, including the most vulnerable job seekers, can take advantage of new opportunities and share in the nation’s prosperity.

Mining giant BHP Billiton has announced a new $830 million mine at Illawarra Coal in southern New South Wales. The company will build a new mining area at Appin Mine to replace production at its ageing West Cliff Mine.

The replacement area will have a production capacity of 3.5 million tonnes per year of metallurgical coal and will sustain Illawarra Coal’s production capacity at 9 million tonnes per year. Appin Area 9 will be operational in 2016.

“The investment sustains Illawarra Coal’s production rates and recognises the value of its high quality metallurgical coal resources,"  BHP Billiton Metallurgical Coal President, Hubie van Dalsen said.

The Federal Minister for Mental Health Mark Butler has announced the establishment of a Consumer Reference Group to set up the new National Mental Health Consumer Organisation announced as part of the National Mental Health Reform package.

“I’ve appointed ten people to the Consumer Reference Group who have the necessary expertise and experience to make a profound impact on the responsiveness and accountability of the mental health system.

“Members were chosen by a selection panel made up of consumers, non-government and government representatives and bring a diverse set of skills, knowledge, sector diversity and networks,” Mr Butler said.

The Australian Government has invested $4 million over five years to establish and operate the new National Mental Health Consumer Organisation as part of its landmark $2.2 billion national mental health reform package.

The Consumer Reference Group will be chaired by Mr Ian Watts who has an extensive health care background and substantial experience in leadership and organisational roles.

Mr Watts said diverse and inclusive consultation was central to Australia’s mental health reform.

“It’s critical to listen to and support people who cannot always speak out independently to improve mental health systems, particularly the safety and quality of these services, and community awareness of the issues.”

The group will lay the foundations of the new Organisation through a range of engagement activities which may include consultations, forums and membership activities.

Once established, the new Organisation will be dedicated to representing the diverse views of mental health consumers to contribute to a more responsive and accountable mental health system.

The members the Consumer Reference Group are:

Mr Ian Watts (Chair)
Dr Michelle Banfield
Mr Michael Burge
Ms Fay Jackson
Mr Darren Jiggins
Mr Keith Mahar
Mr Lei Ning
Ms Lorraine Powell
Ms Emily Todorov
Ms Lily Wu

A partnership between Downer EDI and Electro-Motive Diesel (EDI) has been awarded a major locomotive supply contract from mining giant Fortescue Metals.

The contract will see the partnership design, build and deliver 19 new locomotives for Fortescue's Pilbara operations in Western Australia. The first new locomotives are expected to be delivered in August 2012. The total value of the project is over $73 million including the provision of service and support activities for the19 locomotives for a minimum of five years with an option to extend.

“This fleet of SD70ACe locomotives will bring significant performance benefits to Fortescue including additional haulage capability, fuel consumption improvements, exhaust emission benefits and reliability improvements," Downer CEO Grant Fenn said.

“By combining the technical strength and expertise of EMD with Downer’s local Australian knowledge and support, we will deliver a fully integrated locomotive that complies with Australian customers’ requirements."

The Queensland Government has released a draft of the Queensland Gas Market Review, prepared by the state's Gas Market Advisor, for public consultation.

Minister for Energy and Water Supply, Mark McArdle said the draft 2012 review helped identify limits on reserves that could impact on gas supply availability, market development, security of supply and wholesale gas prices. 

Mr McArdle said the review had a strong focus on establishing gas reserves allocations and development rates. 

Mr McArdle said the role of the Queensland Gas Market Advisor was to look forward and identify problems in the State's emerging LNG industry before they happened. 

The draft review notes balance has not been achieved between large gas demand for export supply and demand for domestic gas supply. 

The review found the lack of access to future gas supply contracting information resulted in the State’s gas reserves remaining in short supply for new domestic supply contracts (before and after 2015), while major industrial customers were unable to resolve future contracting requirements and business plans. 

“This lack of liquidity is contributing to a high level of uncertainty in the market, which is also affected by the uncertainties of domestic and international LNG supplies and future gas prices,” Mr McArdle said. 

The Advisor warned that if the domestic supply situation did not improve over the next 12 months, there could be insufficient time to address a domestic supply constraint for 2015–2020.

The Advisor also recommended the Queensland Government consider developing a risk management approach for domestic supply and market liquidity in the planning and approval process for development of future new LNG trains. 

The Gas Market Advisor is responsible for facilitating frequent and open dialogue between government and industry, and providing recommendations to government on key gas market issues. 

Consultation on the draft review will close on 13 July 2012. 

The draft 2012 Gas Market Review can be downloaded at http://www.deedi.qld.gov.au/energy/gas-market-rev.htm