Peter Reith, former Howard government minister, says coal seam gas fracking will knock down gas prices and would help Victorian manufacturing become more competitive.
Mr. Reith has issued a report exploring the problems concerning coal seam gas in Victoria.
The report addresses all the major fracking related issues, such as possible water contamination, according to a report from ABC.
He says increasing gas prices will greatly overburden Victoria’s manufacturing industry
“They are going to go up regardless, the question is are we going to do anything to improve supply so as to put some pressure on those downward prices.”
Mr. Reith points out the success of fracking in the US, where there were no evidence of any water contamination despite the large number of fracking operations.
“In the US with over 1.5 million operations of fracking there is not one confirmed case of contamination of water from fracking.”
Mr. Reith says the Queensland coal seam gas industry has achieved great results using the fracking process to extract gas
“They’re creating a $60 billion industry in QLD & that means they’re building these massive LNG plants and then in the Hinterland, Bowen basins they are creating really the first ever coal seam gas industry.”
“That production of gas is going into those LNG plants and going to China and they’re going to make a lot of money out of it and it’s going to produce huge incomes in for Australia.”
According to him, regional Queensland communities have greatly benefited by the thriving gas industry.
Meanwhile, State opposition leader Daniel Andrews has slammed Mr. Reith’s report labeling it a “sham process”
“A lot of people are very angry at being locked out of this. Environmental scientists have been locked out, farmers have been locked out, and the only people that Mr. Reith seems to have talked to are people from the energy industry.”
He insisted that all stakeholders should be involved in the investigation before a final decision is made.
“I just don’t think country communities are going to cop Peter Reith saying this is all terrific and we should do this.”
Mr. Andrews has reiterated his position that the moratorium should stay in place until a proper consultation and inquiry has been made.