GasWell, many viewed the appointment of Gary Gray as Resources Minister as a breath of fresh airThe bloke had brains and industry experienceBut it seems he is just a mouthpiece for big minersI see he told a lunch in Sydney on Monday that gas reservation policies would not keep gas prices low“A reservation policy could not lead to lower gas prices or more gas” he said“Calls for intervention only serve to dampen any appetite for the very investment that’s needed to bring on new gas supplies”Gas prices, he said, were rising “irrespective of the development of the east coast LNG industry”I thought Gary Gray was smarter than thisHe is 100% wrongDomestic gas prices will rise precisely because of the development of the east coast LNG export industry which will force local consumers to match international pricesMr Gray is also wrong about gas reservation policies failing to keep domestic prices lowThey have done just that in other countries like the US -underpinning economic recovery there without discouraging mining investmentGas reservation reduces domestic prices because that gas isn’t available to the international market and its price therefore isn’t determined by the international priceMr Gray also says the carbon tax is “here to stay” and that there is no need to change the mining taxDisappointing as it is to say – clearly this bloke isn’t up to his job

The Alan Jones Breakfast show: Highlights