Premier calls for power prices compromise

Mark McGowan has told east coast energy providers they may need to wear the pain of tax hikes amid an anticipated 56 per cent increase in energy prices over the next two years.

That comes as Minerals Council of Australia chief Tania Constable reportedly threatened to launch an aggressive campaign against any potential tax increases, which Prime Minister Anthony Albanese has previously said isn’t his preferred option.

Woodside Energy chief Meg O'Neill earlier this week argued any attempt to lift the petroleum resources rent tax or institute a price cap would have “serious long-term consequences” for gas producers.

Asked this morning whether he would oppose the federal government lifting taxes for the mining and resources sectors, Mr McGowan said he had already assured local industry figures such moves would be narrowly focused on eastern states-based gas producers.

He said the state government’s existing domestic gas reservation policy would preclude it from such interventions.

“The industry needs to understand that, in the eastern states, families are being advised there’s going to be a 56 per cent increase in energy costs in the next two years,” Mr McGowan said.

“The industry needs to sit down with government and come up with solutions to that.

“If it means there’s a bit of pain to be worn across the industry, well then so be it.

Mr McGowan urged the industry to take a constructive approach to the situation.

“[I told them they] need to work with the government to come up with a solution,” he said.

“Don’t just say ‘no’ to everything. Come up with the options that allow for cheaper power.

“If that means all the energy companies across [the eastern states] have to share some pain, then that’s what they should do.”

Today's news adds stress to an increasingly frayed relationship between the federal government and the business community, with the likes of Chamber of Commerce and Industry of WA boss Chris Rodwell in recent weeks speaking out against its proposed industrial relations reforms.

Treasurer Jim Chalmers admitted during a visit to Perth earlier this month that a consensus on IR changes was unlikely to eventuate.

Appearing at the National Press Club yesterday, Industrial Relations Minister Tony Burke insisted the federal government had engaged and consulted with the business community even if a universal agreement hadn’t been reached.

“If you talk to most of the business organisations, you’ll be hard pressed to find many that won’t acknowledge that while there are aspects of this legislation that they don’t like, it’s also the case that the quality of engagement from the government is higher than they’ve seen in a very, very long time,” he said.

Senator Michaelia Cash, who has vehemently opposed Mr Burke's IR reforms, today called on Resources Minister Madeleine King and other federal ministers from WA to oppose a tax on gas companies.

“If past performance is any indication there will be a deafening silence from all of them," she said.