“Australia is awash with capital looking for a good investment home,” Conlon told delegates yesterday at the opening session of the Australian Pipeline Industry Association annual convention in Adelaide.

“Every energy sector, but especially ones with large infrastructure, need regulatory certainty that guarantees a reasonable return on investment,” he said.

“No one should make undue profits but people won’t invest unless they have got the security of a reasonable return on investment.”

Conlon said he was reasonably supportive of some of the issues raised in the Parer Report (to the federal government) some years ago about regulatory holidays.

“Without knowing if that is the right answer, I do think we should look at taking the opportunity we have in Australia, which is awash with lots of capital looking for a good investment home,” he said..

“We have got to make sure there is no impediment to that occurring. Regulatory impediments, if there are any, should be removed.”

APIA chief cxecutive, Cheryl Cartwright, welcomed the minister’s comments and encouraged him to act on his views with a positive policy outcome from Friday’s Ministerial Council meeting in Tasmania.

“Friday’s meeting of energy ministers is a tremendous opportunity for Conlon to put his views into practice when he and his fellow ministers will be considering the Federal Government’s response to the Productivity Commission’s report on the gas access regime,” Cartwright said.

“They need to make the right response. Governments have promised a response to the report for some time and, on Friday, the industry wants the ministers to focus on the impact their decision will have on the gas industry.

“The ministers have been addressing electricity issues and now need to focus clearly on gas transmission, because there are proposals being put to the Ministerial Council that could hinder investment in this industry.

“Friday’s Ministerial Council is a great opportunity to set the regulatory regime that will encourage billions of dollars of pipeline investment in the years to come.”