Pipeline woes

Jon Stanford, in his letter, "Calling a fair tune on pipelines" (AFR July 15) criticises my earlier article on the gas code, which he considers to be light-handed.  The code is in fact a morass of government determined prices and conditions camouflaged by Orwellian New Speak statements.  Not only is it prescriptive but it leaves massive discretion for the regulator to specify the conditions under which parties must conduct their business.

Regulation of new pipelines is particularly unnecessary and a barrier to development.  A pipeline that does not yet exist for a route that is open to competition can only leave prospective users better off.  Similarly, regulation should (not could as the code suggests) be revoked where a new pipeline introduces competition.

As Mr Stanford says, I was involved in the code's development.  I made similar criticisms to those in my article from within that process.

Finally, Mr Stanford contested my assertion that the ACCC considered the gas code unworkable.  My assertion was made after consulting Mr Allan Asher, the ACCC's deputy chairman.

ADVERTISEMENT