A lot of hot air has been around in the media recently around renewables, energy supply, and the economy. Today, Brickworks have dropped a clanger on the whole debate. The 108 year old Australian brick manufacturer released a statement today suggesting they might move manufacturing offshore.

East coast gas prices have been rising significantly in recent times, and the building products maker has indicated they’ve been hit with a 76% rise in a gas contract to the end of 2019. The increased cost of energy is not limited to Brickworks, but rather most Australian manufacturers and the flow on affects the wider economy. The risk of job losses is not limited to the 3,000 brick makers they employ. Rather the flow on being a higher cost of bricks will see home builders using alternative materials, putting at risk the broader market of some 25,000 brick layers. Higher brick costs also increase financial pressures on first home buyers that tend to buy in new estates.

Part of the problem (depending on who is arguing) is South Australia’s reliance on renewables for base power load. Today South Australian Premier Weatherill has today announced a series of measures including a $550m gas power plant funded by the tax payer, and a second gas power station to be built by the private sector. However, this has been a solution by one state to their problem. Brickworks argue that our Politians need to have a national strategy on energy, and better regulate gas exports.