NCCC report

NCCC Manufacturing Taskforce – A Modern Industrial Policy Interim Report – DRAFT
NCCC Manufacturing Taskforce
A Modern Industrial Policy

Interim report – DRAFT

Introduction
We face a difficult environment
The work we have undertaken presents options to decision makers for an industrial policy that
supports manufacturing investment and adds jobs to reboot the economy. We see a major
opportunity to deliver new jobs and prosperity. Our premise is that a liberal, trade exposed
economy is restored and sustained. Our challenge is to promote globally competitive domestic
assets that advantage Australians in an environment that demands high skills, flexibility and
maximum leverage of natural advantage.

Australia needs to improve competitive capability in the delivery of skills, knowledge and
productivity in new jobs. We must drive high value competitive outcomes from the large existing
public programs of Government that are designed for domestic manufacturing growth and
innovation. We need to correct the market failures of our current energy supply – there is a clear
opportunity to deploy our gas resources to reduce electricity costs, offer confidence to industrial gas
users, and bring new investors.

Australia’s manufacturing can be transformed into a vibrant, globally competitive participant in
high value industries. It can:

 Provide 85,000‐170,000+ direct, well paid jobs in energy‐enabled industries alone, including
in regional Australia – aggregate industry estimates are 5x higher;
 Support indirect jobs growth in associated industries at a multiple of 3‐5x direct jobs – an
additional 255,000‐850,000+ indirect jobs;
 Support the reskilling of many of those disrupted and displaced in the current pandemic,
 Improve resilience of the Australian economy by diversification;
 Build an ecosystem that supports high value skills, engages Australia’s raw materials and
agriculture; and
 Underpin growth and prosperity through $10‐20B+ in direct GDP, from energy‐enabled
industries alone – with further potential upside likely, which will have up to an 8x multiplier
effect on the broader economy; when you consider the full benefits of lower electricity
costs, this number will likely be much higher
Government needs to make some immediate, targeted interventions to add focus and extract
greater value from its existing investment. Much can be achieved within existing spending.

Well executed, Australia can emerge from the crisis in a more competitive position than it started,
with greater prospects of resilience and growth.

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Approaches the group has adopted:
 using the filter of global competitiveness to identify and address key points of
underperformance
 using the filter of Australian competitive advantage to find leverage for greater value‐add
 looking at what is most threatened by the immediate crisis to identify ways to sustain and
restore capacity and address capability gaps
 drive hard the interventions that Government is already funding.
The principles and assumptions we have adopted are:
 Australia will continue to prosecute a free and open trading regime
 Government interventions need to be sparing, valuable, effective and targeted to promote
transitions, correct market failures and prosecute strategic intent.
The corollary of the above is that we are Not proposing protectionism, Nor state supported
industries or compulsory acquisitions, Nor price controls, Nor massive subsidies.

Key observations:
 Australia’s high level of innovation fails to translate into high value outcomes from
productization and commercialisation
 Government invests $15b+ a year for advanced manufacturing across many programs, but
these are not always targeted for competitive advantage and do not strategically address
major gaps – other countries have far greater focus and achieve better value for spend
 Competitor nations are far more aggressive and strategic in their approach to industry and
innovation
 Digital literacy and adoption of digitised industry and services are below comparator nations
 The Australian skilled labour system is uncompetitive and is failing industry and students ‐ its
curricula and systems need to be dynamic and stringent in assessment, aligned with
technology and global standards of execution skills
 Energy has become a risk factor for Australian industry. Prices have risen sharply and key
supply components have limited life. Since 2008, Melbourne’s nominal gas price has risen
177%, while New York gas prices fell 41%. Energy should be a source of advantage for
Australian industry.
Target outcomes
 85,000‐170,000+ more jobs – over the next 10 years – representing a top down view that at
least 10‐20% growth across sectors is realistic
 $10‐20B+ increase in direct GDP – likely to be significantly higher once benefits of lower
electricity costs flow to full economy
 Increased FDI
 Value add – real productivity driver increased
 Broader economy less exposed to commodity prices and with a greater diversity of markets
 More major avenues for economic growth where we have a natural advantage
Key measures
1. Creating globally competitive, sustainable new industry
2. Creating a globally competitive domestic gas market
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Creating globally competitive, sustainable new Industry
New jobs in new industry has to be the priority in an economic outlook firmly guided by rising
technological influences, dynamic consumer and industrial preferences and the variety of political
and social factors changing global trading terms and supply chains.

Competitive manufacturing functions as an ecosystem in which production is tightly aligned with
value‐add products, development activity, innovation and strong execution on sales and service. It is
an ecosystem characterised by flexibility, versatility and resilience.

Competitive manufacturing does not rely on tariffs, quotas or other broad mechanisms. Nor does it
require a new bureaucracy. We have not considered industry subsidy, state ownership or
protectionism in general.

Australia has made very large commitments in Government programs to build domestic industry.
There are substantial, well‐funded programs whose purpose it is to support and sustain innovation,
build sovereign capability and globally competitive new industry. Our first recommendation is for a
mechanism to drive outcomes from that investment.

Australia needs to create a mechanism that will deliver jobs and industry from the large public
programs devoted to domestic industry enhancement. The mechanism should engage leaders with
strong experience – in particular leveraging people with strong business expertise. It should be
transparent and accountable for the goals of sustained job creation and competitive outcomes
pursued by existing programs.

A critical outcome of manufacturing investment is the creation of vibrant manufacturing
ecosystems. Strong disciplines in project management, commercialisation, sales and other
management attributes need to partner with technical and research skills and knowledge,
infrastructure and globally‐aligned workplace and policy settings.

It is essential for manufacturing growth that enabling structural reforms in Australia’s skills
training and education are brought to the front line of priority.
Long an orphan in the Federation’s education systems, vocational training in particular needs a
national re‐set that comes with both a disciplined, adequate funding model and strong
accountability for the quality and practical value of its outcomes. It should be the core of Australia’s
tertiary system, with a high profile and strong community awareness of its value and importance. In
the current environment it provides a vital opportunity and mechanism for a revamped tertiary
education system and urgent retraining of workers who lost jobs in the current crisis.
Creating a globally competitive domestic gas market
Australia is the world’s largest exporter of LNG ‐ yet our domestic market fails to deliver adequate
supply or price certainty, and it is expensive. Despite the existence of large gas reserves, high
domestic prices have failed to promote new supply – a clear indication of market failure. Gas is key
to driving down electricity cost and improving investment in globally competitive advanced industry.
Fixing our gas market can break the investment logjam around electricity and deliver feedstock for
industries that are foundations for advanced manufacturing investment.

Formerly an advantage for Australia, energy costs have become a competitive disadvantage. Gas is
20‐40% of many industries’ cost structures. In the past decade the cost of electricity in Australia has
risen by almost 90%, and the cost of gas by nearly 50% ‐ recent short‐term reductions are likely to
provide only temporary relief. Gas reserves supplying east coast population centres are in decline
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and contracts for any substantial volumes unavailable – shortfalls are forecast by 2029 if no new
low‐cost reserves are confirmed. At the same time, base load coal power stations are ageing and
will become unreliable. At present, the cost of pumped hydro and batteries remain high, so
renewables will require gas power plant flexibility to complement their generation if we are to
have a reliable transition and achieve cost reduction. Q4 2019 exposed us to the highest variability
of renewables generation on record. An unchanged energy outlook will see increasing uncertainty,
failing industry investment and eventually higher costs and even less reliability. At the same time,
current prices are a threat to the existing industrial base.

Resolving these issues unlocks high paying jobs for Australians …
- …By supporting the sustained competitiveness of existing, energy intensive industry – which
currently employ approx. 1 million Australians – through lower gas and electricity prices
- …By attracting and growing new, globally competitive value chains where Australia has a
natural source of competitive advantage (e.g., petrochemicals, fertilisers, explosives,
aluminum and steel)
- …By supporting cost‐efficient energy transition through dispatchable power that supports
growth in renewable generation
- ….By providing a foundation for Australia to become a world leader in green and blue
hydrogen at export scale.

We need to be decisive, and begin immediately, to create an Australian gas market that delivers
globally competitive results, like Henry Hub. Effective, efficient choices will allow our ample gas
reserves to reach Australian users at globally attractive prices that reflect ample reserves:

 Market‐making must occur – this will require underwritten volumes in the first instance
as well as whole of market participation in transparent pricing. There is precedent and
consistency in related energy policy – in recent years, state governments have
supported infrastructure investments in renewable energy generation through reverse
auction contract‐for‐difference schemes aimed at, among other things, ensuring price
certainty within the market (e.g., Victorian Renewable Energy Auction Scheme).
Similarly, the Federal Government announced the ‘Underwriting New Generation
Investment (UNGI) program in 2018 to support infrastructure investment in firm
generation capacity and increase competition in the NEM;
 New field developments must be enabled to proceed (e.g., Beetaloo, Narrabri, Bowen
Basin, Perth Basin) – this will require a removal of regulatory barriers as well as access to
development capital to avoid potential shortfalls, as there is a real risk of insufficient
investment due to current low oil prices;
 The pipeline network must be expanded with urgency – to improve connectivity within
the East Coast and North, and potentially the East‐West; delivered in a cost‐efficient
manner with fair, low cost access for all market participants;
 New and existing demand projects must be provided with stability of supply –
particularly those close to current and future supply hubs – so they have market and
operating certainty to invest with confidence, and Australia can attract new foreign
direct investment to grow GDP;
 The operating environment must be simplified – reducing ‘red & green tape’ via
smooth and more aligned approvals processes, lifting sharply Australia’s bottom‐quartile
global ranking, and introducing clear ‘use it or lose it’ tenement provisions;
 Gas is central to more rapid adoption of renewables at least cost, building the bridge
to Australian opportunity as a leading hydrogen player – replacing coal retirements
with renewable generation plus gas peaking can help Australia accelerate the
decarbonization of our energy supply, at the lowest cost

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Henry Hub equivalent pricing in our domestic gas market positions Australia as a world leader in
industries where we have natural advantage. This is a credible goal – 40% of East Coast production,
and 20% of West Coast production forecasts through 2029 are already below $4/GJ ex‐field based
on Rystad data. Over the past 10 years, US gas producers reduced cost by >60% ‐ and over 15 years,
>75%. Individual players within Australia made comparable capital reductions and operational
improvements as they acquired knowledge of basin development. Many decisive levers are within
government and regulatory control – particularly with respect to the removal of ‘red and green tape’
(up to one‐third of current costs by some estimates), and by a review of pipeline tariffs. This journey
demands concerted, coordinated action.

Deep‐dive: Creating a globally competitive, sustainable new industry

The taskforce has focused on three areas of recommendation.
1. Take a longer term view to create more value from our investments
We can extract more value and make more effective the existing substantial public investment in
developing high value‐add industry, technology and products.

Currently, there is strong government support for developing basic technology research (technology
readiness levels (TRL) 1‐3) through e.g., CSIRO, CRCs, as well as some focus on productization (TRL 8‐
9) through e.g., Growth Centres, Department of Industry Entrepreneurs Program. However, limited
focus is being given to the steps required to link the two and develop and demonstrate the
technology (TRL 4‐7). Management of the entire process, funding options and required
collaborations need to be strengthened to build out Australia’s competitive advantages and
compete on a global scale.

Global peers including Singapore (EDB), UK (Catapult) and Ireland (Enterprise Ireland) highlight the
success of an expertly delivered long‐term strategy with firm, high level government commitment, a
focus on investing in areas of competitive advantage and transparent measurement of impact.

The taskforce recommends the creation of a strong governance structure that is anchored in
legislation, provides a 10‐year development plan and proposes tightly‐drawn areas of competitive
advantage. It allows transparent measurement of success against clearly defined metrics or targets.

Our recommendation is based on five principles
 Embed a long‐term, 10‐year policy view, with clear accountability for impact against agreed
KPIs
 Redeploy existing funds, efforts and other tools to reduce the risk of scaling
 Accelerate approval processes for projects and removal of red tape
 Focus investments and support on tightly‐defined areas of competitive advantage
 Leverage existing Australian structures and exemplars where possible, and draw on global
evidence base

To implement these principles, we require a mechanism that provides direction and significant
political support to drive manufacturing up the value chain.

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We recommend a new Manufacturing Board, reporting to the Minister of Industry, to develop a 10‐
year policy plan for annual review. The Board promotes policy and regulatory certainty, defines
tightly‐drawn focus areas of competitive advantage and monitors outcomes against KPIs. Legislated
with a stable 10‐year time horizon and requirement for annual plan and performance report to
Cabinet and Parliament. Those plans include forward‐looking strategies and accounts of outcomes,
successes and failures against KPIs. The board consolidates and prioritises existing government
interventions – existing funding and programs – based on agreed focus areas. The Minister supports
the coordination of Cabinet for elements extending beyond the Industry portfolio.

2. Drive rigorous implementation and measurement of impact
In order to support the develop of competitive advantage, a strong execution mechanisms is
required that implements the 10yr policy plan – as set by the board – with clear accountability for
agreed milestones, KPIs and outcomes.

We recommend the development of Industry Hubs supported by the ‘Manufacturing Board’, that
are industry‐led and incorporate existing Growth and Research Centres (e.g., Growth Centres, CRCs,
RDCs, I4.0 testlabs) in areas of competitive advantage in line with the defined policy. The Industry
Hubs goal is to develop and commercialise products and technologies that allow Australian industry
to compete globally. Hubs foster and orchestrate collaboration between Commonwealth, States,
industry, SMEs and research institutions relevant to specific sectors (e.g., Space, Agritech) and
capabilities (e.g. AI, Robotics). The Industry Hubs should also aim to attract private investment into
the defined areas of competitive advantage including from private equity and super funds. They are
expected to monitor performance against set KPIs, and national and global benchmarks.
Good global comparisons include the US Manufacturing Institutes that leverage Public Private
Partnerships to develop (for example) 3D printing technology, enable collaboration, scale and
commercialisation of products.

3. Support with structural reforms, starting with skills
Across the board, employers report challenges finding skilled employees. Without skilled labour
there can be no creation of a high value, versatile and resilient advanced manufacturing capability.
In the current environment, it is an immediate priority to provide retraining opportunities for those
whose previous job may be unavailable or lost.

Firstly, the connection between vocational qualifications and the industrial task needs to be re‐
established. Secondly, a shift in the public conception of manufacturing is required.

On the first point, we recommend establishing strong involvement of industry in Vocational
Education and Training (VET) including TAFEs. Fundamentally, industry must be engaged with the
maintenance of competencies and their relevance to actual tasks and with the rigour of
assessment. We also recommend the national alignment of qualifications, curricula and training
with the needs of the workplace. The currently proposed VET reforms and the National Skills
Commission are a first step in that direction. The commission needs strong, realistic and forward‐
looking workplace representation including both industry and employee representatives. It needs to
fully endorse the development of a National Curriculum supported by a National Training
Framework that provides qualifications accepted across state boundaries.

To address the second point, we recommend launching a national campaign to change the image of
manufacturing and showcase modern career opportunities.
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There are other structural reforms that can support the development of Manufacturing. This
includes for example, R&D tax incentives, open data access, as well as Intellectual Property laws.
Focus investment to achieve strong job growth
Australia needs to invest in areas of comparative advantage, in order to grow the right scale and
capability to hold sustained global competitive advantage. Globally, there is strong evidence that
industry hub approaches, which bring together government investment, industry and research
institutions to focus on particular sectors, deliver significant return in export growth, jobs and small
business capability. There is broad consensus in Australia around six areas of focus.

Food and Agritech reflects the strength of Australia’s agricultural and livestock sectors as among the
world’s most efficient, sizeable and valuable. There remains opportunity to build value‐added
products: innovations in protected cropping and AI driven livestock management will position us as
agritech leaders; new food designs, processing technology and packaging will help us realise our
rightful share of the emerging global middle class and its appetite for quality, nutrient rich products.

MinTech and Rare Earths similarly reflects the value and breadth of our raw commodities. Australia
is the world’s largest producer of bauxite and alumina; the second largest of rare earth metals and
third largest of uranium. We have the means to make precision engineered components for
electronics, high technology and aerospace: investing in 21st century production capabilities will
open opportunities to join global supply chains for the technology which will sustain our way of life.

Energy and Renewables draws upon both Australia’s mineral riches and the diversity of our
geography. We have a climate and landscape ideally suited for solar and wind generation. We mine
9 of the 10 components of lithium‐ion batteries which will be essential to storage. Bringing together
these existing capabilities, we are ideally positioned to develop a hydrogen industry – literally
exporting sunshine – to global markets hungry for clean power.

Advanced Building Materials are the natural evolution of Australia’s established building industries.
New product designs and manufacturing techniques offer opportunity for lighter, stronger, less
emissions intensive materials for use in for example the infrastructure sector.

Healthcare and Biotech is an area where Australian applied research has driven outstanding
innovation (e.g., Cochlear implants). We have opportunity to industrialise our research, clinical trial
capabilities and therapeutic ingenuity by taking a more systematic approach to IP development,
providing better access to early stage funding, and bringing together clinicians and technicians.

Space exploits Australia’s pivotal southern hemisphere location and ability to bring a highly skilled
workforce to some of the most challenging technology problems. The Australian Space Agency’s
initial investments have already brought Australia into NASA’s supply chains; further work is
required to bring these capabilities to scale and develop new markets as Asia enters the space race.

Defence will always be a core sovereign need for Australia. We need to project confidently beyond
our borders to defend the global rule of law and contribute as required to the security of our region.
Defence investments can be leveraged to advance high tech products and technologies. They can
deliver world class products from expertise developed through Defence technology and growing
manufacturing capability. A close connection of the Department of Defence with the new
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governance structure is essential to ensure significant public funds are deployed efficiently to grow
domestic jobs.

In addition to these focus areas, Australia must also consider the development of broader
“horizontal” capabilities which enable a vast range of manufacturing activity. Robotics, high
performance computing, data analytics, artificial intelligence, additive/3D manufacturing, materials
science and hydrogen technologies all have applications across many sectors, but in Australia may
have limited penetration (e.g., automated trucks in mining). As well as having strong investment
focus areas, high performing global peers (e.g., Germany, Denmark) established centralised
innovation enablement bodies which facilitate cross‐sector capability transfers. By providing
matchmaking, networking and exchange of best practice ideas, the value of specific sector
innovation is realised many times over as it translates into broader sector capabilities.

Deep‐dive: Creating globally competitive domestic gas market to
support new industrial growth

The taskforce has focused on six areas of recommendation, across three phases.
Phase A: Remove barriers & build the bridge
1. Remove barriers
a) Lift the moratorium in New South Wales, and the remaining moratoria in Victoria –
promote immediate least cost projects adjacent to major markets and infrastructure
b) Initiate a rapid ‘red & green tape’ reduction – maintains safe, environmentally
responsible operations and reduces complexity and cost. Streamline approvals with
transparent default conditions and requirements common to all players – manage by
exception, and leverage international standards and interstate consistency wherever
possible, to help address what currently represents up to ~one‐third of the current cost
structure of Australian production
c) Establish a global best practice gas development regulatory framework in the
Northern Territory – to unlock new supply for the East Coast

2. Build the bridge in the near term
a) Enforce ‘use it or lose it’ provisions – ensure tenements are developed and compliant
with work programs, and set clear and ambitious timelines for future tenement
developments, following international best practice (e.g., US ‘UIOLI’ (Use it or Lose it’
program, UK)
b) Provide support, such as low cost capital, to existing small and mid‐cap market
participants – promote current field development and avoid a supply/demand
imbalance in 12‐24 months’ time; target basins with infrastructure to connect to
markets; consider incentives to ensure there is bridging supply available as we come out
of this current low oil price investment environment
c) Establish a forward‐looking gas reservation policy for Northern Territory and East
Coast developments – ensure new field developments supply the domestic market in a
national network regulatory regime – applying learnings from WA reservation
d) Accelerated developments for highly prospective opportunities – to ensure there are
robust investments to maintain low‐cost supply into Moomba/Wallumbilla. The
Beetaloo is a good example of liquids‐rich acreage with shorter (350km) pipeline to
Darwin for a local manufacturing/petrochemical hub. Government could support the
pipeline development and enable regulatory environment conducive to rapid, safe and
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low‐cost development. A drilling program required to develop this basin could be
advanced in partnership GeoScience Australia, taking a more active role to advance
development (with cost recovery from basin participants). Similar models may be
applicable to the Bowen, or to Cooper deep coal gas, among others. Co‐ordinated
efforts across agencies is required to ensure least cost outcomes.
e) Coordinate with hydrogen development to ensure long‐term demand potential (incl.
avoiding demand destruction) – actively collaborate with green and blue hydrogen
investment strategies to pave the way for a robust, export scale hydrogen in the future
Phase B: Create the market, lower the cost & complete the network
3. Create the market
a) Underwrite supply at priority supply‐hubs, to ‘create the market’ – underwrite
upstream gas volumes at fixed prices in line with demand; allow participants to trade
around the positions, so the government never takes possession of the molecules –
essentially aggregating the ‘book build’ of demand and matching users to the long‐lead
production development in a parallel process. Potentially aligned with UNGI program.
o ACCC Retail Electricity Pricing Inquiry found a large barrier to new electricity
generation projects is inability of market participants to commit to long term
contracts (~10‐15 years) despite being able to commit to shorter term contracts
(~5 years). Through this program the federal government enables new long term
investments through a range of mechanisms, including low fixed priced energy
offtake agreements;
o State reverse auction contract‐for‐difference schemes such as the Victorian
Renewable Energy Auction Scheme could be leveraged. The state government
commits to purchasing a certain amount of renewables capacity but requires
bidders to offer their best prices and selects projects from the lowest bidder and
up until total capacity ask is met. The government also provides price certainty
through the contract for difference mechanism, similar to that discussed above.
b) Compel price disclosure and reporting of differentials – all domestic gas subject to
mandatory disclosure of price and on‐cost linked back to 1‐2 well connected hubs
(Wallumbilla, Moomba) – essential transparency for market‐making currently absent;
use existing settlement infrastructure established by AEMO at both Wallumbilla and
Moomba but require disclosures of market participants to enhance both transparency
and increase volumes

4. Lower the cost
a) Revisit pipeline rates of return – adopt ACCC recommendations to bring all Australian
pipeline rates of return in line with typical infrastructure (4‐8%) as they are in other
developed markets (including the US and Canada) – this will require transitioning several
unregulated / semi‐regulated pipelines onto a more regulated model; further work is
required to ensure this is done in a rapid but orderly manner, and that transparency on
pricing differentials for regulated returns is also a clear part of the solution
b) Reduce excessive duplication cost of infrastructure – incentives for basin participants to
collaborate on single infrastructure projects – with control through approvals process if
not occurring organically – for both field and interstate infrastructure. States will control
this in general, with the federal government taking a role for inter‐state pipeline
developments. Improving access (for both large‐scale and in‐field infrastructure) will
further reduce this need for duplicated costs.

5. Complete the network
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a) Take active, participatory role in strategic pipeline developments – proven precedents
(e.g. Norwegian government in North Sea, original Cooper Basin, Moomba to Sydney
ethane line, original construction of Dampier Bunbury Pipeline (DBP) in Western
Australia) in taking a non‐operating equity position, minority share, or underwriting
position to ensure large reductions in energy cost are delivered
b) Consider tax incentives for priority infrastructure – review the merits of the US Master
Limited Partnership (MLP) in encouraging investment in gas infrastructure, where
attractive treatment of dividend payments compensates for low initial rate‐of‐return on
investments (~4‐8%) – this model supports lower pipeline tariffs while providing an
attractive rate of return for shareholders (~10‐12%+ after tax)
Phase C: Scale and win
a) Proactively attract foreign‐direct investment on demand side –a tangible ‘open for
business’ message for Australia in naturally advantaged sectors (petrochemicals,
fertilisers, explosives, aluminum, steel) – similar to Saudi ‘Vision 2020’ campaign
b) Provide policy stability that enables the market to thrive – legislation and associated
regulatory bodies designed for policy‐setting that is strategic and sustained; the
historical rate of policy change was 19 over the decade 2000‐2009, versus 41 from 2010
to 2019, according to a recent WoodMackenzie review
c) Establish an 'evergreen' taskforce between AEMO and ACCC – to manage
implementation and send clear market signals via aligned basin and pipeline
prioritisation, published and refreshed regularly. This will:
o Help drive investments (in fields and infrastructure) in the most economically
efficient areas;
o Provide services providers with visibility they require to flourish;
o Promote scale in basins. US ‘experience curve’ in shale gas was first driven by a
robust oil‐field services sector and small players rapidly experimenting and
applying their learnings – but the true efficiency of the past decade has been
driven by scale ‘in‐basin’.
In Australia, given the small size of the domestic gas market in relative terms (vs. the
US where even with new LNG exports, where the domestic market is very significant
and exports are nascent), ‘scale in basin’ is a joint LNG and domestic gas discussion
– which must be taken into account when identifying and prioritizing opportunities,
and coordinating the response and support to ensure sufficient low cost domestic
supply is made available.
d) Work with financial service providers to create a liquid futures market – enables
market participants to hedge domestic supply positions: may take several years to
develop, but can be accelerated by a liquid physicals market at supply hubs
e) Continue to coordinate with hydrogen

Our approach is market‐based, aiming to create a globally competitive domestic gas environment.
Alternatives involving price controls, tariffs, or direct subsidies are not considered – nor is there any
intent to ‘pick winners’.

We conservatively estimate the incremental demand for gas is 60 PJ in 2025 and 110 PJ in 2030,
assuming the industrial base grows by 10% by 2025 and 20% by 2030, our existing industries remain,
and coal generation is replaced by a combination of gas generation and renewables (with gas
contributing ~10‐15% of total generation required) – predominantly for firming, although with
certainty at sufficiently low cost levels ($4‐6/GJ) the role of CCGT in baseload capacity will likely
expand significantly, and therefore these numbers may be higher.

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Our process

The National Covid‐19 Coordination Commission requested Mr Andrew Liveris, Chairman and former
CEO, Dow Chemicals, to chair a taskforce to deliver recommendations for growing manufacturing to
become a cornerstone of the Australian economy. The NCCC Commissioners and Mr Liveris formed
the following Manufacturing Taskforce to bring together a range of perspectives for this critical task.
 Mr Paul Bastian, National Secretary, Australian Manufacturing Workers’ Union
 Mr Ben Eade, CEO, Manufacturing Australia
 Mr James Fazzino, Chair, Manufacturing Australia
 Dr Jens Goennemann, Managing Director, Advanced Manufacturing Growth Centre Ltd
 Mr Dan Walton, Australian Workers’ Union
 Mr Innes Willox, Chief Executive, Australian Industry Group
 Mr Scott Wyatt, CEO Viva Energy

Additionally, the taskforce proposed an ‘Advisory’ to ensure a broad perspective when defining
recommendations. We would like to acknowledge its members:

Table 1 ‐ List of individuals in the ‘Advisory’
The Manufacturing Taskforce’s regular meetings were informed by many of Australia’s leading
business and government officials, as well as a number of international experts. We would like to
acknowledge the particular contributions of the following individuals:

Table 2 – List of individuals acknowledged by the taskforce
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