APIA - the peak national body representing Australia's gas transmission sector - described the new Productivity Commission report as "a wake-up call" for Australia to ensure a more effective pro-investment climate for transmission pipeline development.
"Sadly for Australia, the major deficiencies highlighted in the report are having an adverse effect on investor sentiment in the nation's gas transmission sector," said APIA's executive director, Dr Allen Beasley.
"The paramount concern identified by the Productivity Commission is the potential for access regulators to stifle essential infrastructure like pipelines.
"APIA seeks urgent attention by the Commonwealth and State governments to rectify this situation and to substantially improve the country's essential infrastructure investment climate."
Dr Beasley said the Productivity Commission report was welcome and timely - as was the Commonwealth Government's commitment to conduct an independent review of the Gas Access Regime.
"This review must be conducted by an independent and credible body and APIA supports the Productivity Commission to take the lead role, given its familiarity and knowledge of the underlying issues," he said.
"The review must extend beyond operation of the Gas Code. It must include a fundamental re-think on issues like certainty for investment, legitimate needs of developers, meeting long term customer needs, and the strategic role of pipeline infrastructure in creating more effective producer competition."
Dr Beasley said the WA Supreme Court had recently highlighted major deficiencies in the way regulators were performing their role under the existing Gas Access Code, pointing to serious errors of law in their approach.
"APIA welcomes the opportunity to work with Governments in securing outcomes that genuinely meet Australia's long term National Interest," he said.
"APIA will be reviewing the Commonwealth Government's interim response to the report and is committed to securing an environment that addresses the legitimate business interests of transmission pipeline owners and developers."
