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Former Fortescue Metals boss Nev Power has distanced himself...

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    Former Fortescue Metals boss Nev Power has distanced himself from plans to dramatically increase public spending on gas infrastructure, saying a leaked document does not represent the view of the government's COVID-19 commission.

    A manufacturing taskforce established as part of Prime Minister Scott Morrison's National COVID-19 Co-ordination Commission drew up the plans for public ownership of new gas pipelines, underwritten gas supply projects and a national gas reservation policy.

    The measures, part of efforts to turn back the clock on east coast gas prices and fuel a national manufacturing-led economic recovery, have been criticised by both renewable energy advocates and manufacturers wanting more immediate action to restore competitiveness at ailing plants

    The manufacturing taskforce is led by former Dow Chemical executive Andrew Liveris.

    Speaking to a Senate committee considering the government's response to the COVID-19 pandemic, Mr Power said the interim plan wasn't the view of the commission and was the work of Mr Liveris' team.


    "The leaked report doesn't reflect the views of the commission.

    "The commission is not recommending any subsidised delivery of gas or any other energy system but we have talked about the provision of infrastructure to reduce the cost of transportation and delivery lower costs.

    "The focus that we have been approaching is how do we accelerate the recovery of the economy."

    The most controversial aspect of the plan was the $4-a-gigajoule price target for gas delivered to manufacturers on the east coast that it says would deliver a boost of up to $20 billion or more in direct GDP, and up to eight times more on the broader economy.

    The manufacturing sector could deliver up to 170,000 well-paid jobs in energy-enabled industries and up to five times more jobs in other related industries, said the draft document obtained by The Australian Financial Review last month.

    A "three-phase" push for low gas prices involves scrapping the moratoria on onshore gas in NSW and Victoria, enforcing "use it or lose it" rules for licences over gas fields, imposing a gas reservation scheme for the Northern Territory and the east coast, and a fast-tracking of developments.

    Mr Power confirmed to Centre Alliance senator Rex Patrick that he still holds Fortescue shares, but said the company was not currently advocating an east-west gas line plan.

    Mr Power said he was "unfortunately" not a significant shareholder.

    "I don't believe Fortescue would benefit from a pipeline at all now," he said.

    Environmentalists continue to oppose the make-up of the commission and Mr Power's role, pointing to his ties to Fortescue and gas exploration company Strike Energy.

    Greenpeace Australia Pacific campaigner Jonathan Moylan said the commission had not completed cost-benefit analysis to support its decisions to advocate for certain projects.

    “The gas-led COVID Commission has been lurching from mishap to disaster since its inception and it’s well past time to put it to bed and replace it with an independent, representative, transparent, participatory and well-advised recovery body," Mr Moylan said.

    Finance Minister Mathias Cormann, Tax Commissioner Chris Jordan and Treasury boss Steven Kennedy will go before the inquiry next week, facing questions about the $60 billion JobKeeper bungle.




 
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