Australia's largest brick-making business believes the federal government lacks the "ticker" needed to act on rising energy prices, leaving the company no choice but to increase imports and consider offshoring jobs.
Brickworks chief executive Lindsay Partridge, a long-time Liberal Party donor, was scathing of the Turnbull government on Thursday for failing to address the gas supply crisis and steep price rises he says will add $20 million to the company's production costs every year.
"I've got no faith the government will solve it," Mr Partridge said. "We have to take action ourselves."
Mr Partridge said Brickworks had been forced to increase imports of more-affordable products from countries including Spain and Italy, and said a move to set up some of its manufacturing in other countries remained a live option.
"We are considering it," he said.
Delivering Brickworks' full-year results on Thursday, a net profit of $186 million that was more than double the previous year, Mr Partridge said making bricks was a gas-intensive business that would be "handicapped" as prices climbed exponentially.
His comments follow a dire warning this week from the national competition watchdog, Rod Sims, who said gas-starved Australian factories were at risk of shutting down and laying off staff because gas exporters favoured overseas customers.
Brickworks shares fell 1.65 per cent to $13.75 on Thursday.
Mr Partridge called on government leaders to set up a "use it or lose it" policy that would force Australia's gas companies to develop the gas reserves they are sitting on or risk losing their licence area.
Another option, he said, was for governments to make more land available solely for new producers and develop a gas deal "solely for the domestic market".
"In 2012, when we first started raising this [problem], we were laughed out of Canberra. They all thought we were mad," Mr Partridge said.
"I'd be surprised if the government has the ticker to fix the problem."
Brickwork is one of the nation's largest diversified building materials manufacturers, incorporating well-known brands like Austral Bricks and Bristile Roofing.
In its yearly results, Brickworks' underlying net profit rocketed 34 per cent to more than $196 million.
Sales of building products reached a record $763 million, but earnings fell 13.7 per cent to $65 million due to a "stark contrast in conditions" between the east and west coasts of the country.
Brickworks chairman Robert Millner said the year to July had been an "extremely challenging" period in Western Australia, with building starts down 22 per cent.
"This has resulted in lower sales volumes across all our operations and earnings from Western Australia, decreasing by $12 million compared to the prior year," he said.
Brickworks has had to shut down six plants in Western Australia in the past year, with four of those plants to remain closed permanently.
The company said it "remained positive", forecasting that demand from Australia's east-coast housing market would remain strong in the short and medium term.
Brickworks' fully franked final dividend rose 2?? to 34?? a share, which will be paid on November 29.
