TAI paper: mining and energy companies received $18b assistance over six years

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Image credit: flickr User: Lisa Dinh

A new paper released by The Australia Institute (TAI) has found that state Governments have spent almost $18 billion supporting mining and energy companies over the past six years.

Image credit: flickr User: Lisa Dinh
Image credit: flickr User: Lisa Dinh

According to the article on the Sydney Morning Herald, the “Mining the Age of Entitlement: State Government Assistance to the Minerals and Fossil Fuel Sector” paper revealed that the biggest chunk of such assistance – via subsidies, concessions and cheap access to infrastructure – has occurred in Queensland and Western Australia.

The research body’s paper – which is based on an analysis of state Government budget papers that are produced by state treasuries each year – showed  that since 2008-09 the Queensland Government has provided more than $9.5 billion in direct support to mining and energy companies, while the Western Australia Government has provided more than $6.2 billion in the same period.  NSW has given mineral and energy companies more than $872 million, followed by the Northern Territory ($406 million), South Australia ($316 million), Victoria ($205 million) and Tasmania ($54 million).

The paper points out that state governments’ assistance to mining and energy companies is restricting its capacity to spend on other areas such as provision of health, education and transport infrastructure.

However, the Minerals Council of Australia said the mining industry contributed much to the economy in the form of revenue.

Adertisement

”Australia Institute reports about the mining sector are routinely riddled with errors, distortions and misstatements,” Minerals Council chief executive Brendan Pearson said.

”According to Deloitte Access Economics, over the last six years, the Australian mining sector contributed over $121 billion to federal and state governments in the form of corporate tax and royalty payments.”

Australia Institute Executive Director Richard Denniss said the paper was not advocating for or against Government assistance to these industries. He said that it was meant to show that these industries were beneficiaries of Government assistance too, just like other industries.