A CCI survey of the Western Australian business community in the days after the Varanus Island gas plant explosion has revealed that the incident is having a significant adverse affect on local operations and the Western Australian economy.

A worrying trend to emerge from the research is that a number of local companies have been forced to scale back operations and stand down staff.

The state's peak business group, the Chamber of Commerce and Industry of Western Australia, is surveying a large number of members to assess how many businesses are affected by the gas outage, what impact it is having on their operations, and what sectors of the economy are affected.

The survey results have been given to the State Government to highlight the severity of the challenge.

Preliminary results indicate the loss of gas supply is a significant threat to local industry, their employees and challenge for business, industry and the economy more generally.

Of the 83 respondents to the survey, just over half (55 per cent) indicated their business will be directly or indirectly impacted by the gas outage, with the average decline in production 64 per cent. In addition 14 per cent of companies reported they have shut down or will be shutting down completely.

The survey also revealed that;

• Over one quarter of all respondents have been directly impacted by the gas outage, while a further 27 per cent have been indirectly affected.
• 16 per cent of respondents have indicated they have the ability to shift production to evenings, while a further nine per cent could shift capacity to weekends.

Meanwhile, CCI is working collaboratively with the State Government, energy suppliers, customers, and industry groups to maximise the state's energy supplies and develop practical ways forward to minimise the impact on business and households.

To assist business and industry it is important that all Western Australians do their best to conserve energy. Everyone has an important role in ensuring the doors of industry remain open and the wheels of commerce keep turning. The more households and industry can do to conserve gas and electricity the greater the opportunity to protect jobs.

CCI looks to the State Government to provide leadership to manage the outage and develop practical ways forward.

Statement by CCI Chief Executive James Pearson