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28 July 2002 Champions
call for lower gas prices Regional business organisation "Champions of the Bush" believes natural gas prices should be made cheaper across country Australia to promote economic development, attract investment and improve the competitiveness of regional industry. The group has proposed that local bonds could be established to fund the extension of pipelines to country towns that don't currently have access to reticulated gas. Spokesman Richard Rijs, the managing director of Patties Bakery at Bairnsdale, said rural areas are disadvantaged when it comes to paying for energy. "Our business in East Gippsland is located just a few kilometres from Australia's largest natural gas field, but we pay much more for gas than companies that operate in Melbourne and Sydney," Mr Rijs said. "The problem can be overcome by extending the gas pipeline. We're not unique in this regard. A recent forum near Ballarat showed that dozens of towns across Victoria are concerned at the competitive disadvantage they face when it comes to energy prices. "The fact is that developers are deterred from investing in country towns if they have to pay a higher rate for basic services." Mr Rijs said bottled gas was far more expensive than reticulated gas (from pipelines). He said Champions had endorsed the proposal of Dr Greg Walsh that local bonds could be a way of funding utility infrastructure development in country Australia. "Bonds would attract investment from local people and superannuation funds looking for a fixed rate of return on a safe investment," he said. "We need the state and federal governments to work together on making this possible. Bonds are a commonly used investment vehicle in the United States and Europe, and there is no reason why it can't be the same here." Champions of the Bush is represented on a reference group advising the Federal Government's Regional Business Development Analysis panel. Champions will lodge a submission to the panel calling for legislation to enable the use of local bonds as a regional investment tool. |
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