Antinuclear

Australian govt’s corporate welfare to the Big Non Australian BHP Billiton

 “The fuel tax credits effectively act as a massive subsidy for BHP Billiton, begging the questions as to why the Federal Government is subsidising one of the largest mining companies in the world.” said Nectaria Calan of Friends of the Earth Adelaide.

Once known as the “Big Australian,” BHP is now 76 per cent foreign owned, so whilst the Federal Government is funneling taxpayers money into the company, the vast majority of its profits will end up overseas.

BHP Billiton – record profits and still on corporate welfare,  30 Sept 11 The Olympic Dam Expansion Draft Environmental Impact Statement states that the proposed new mine will require 346 million litres of diesel per year in its initial development stage, 394 million litres per year in the intermediate stage, and over 490 million litres per year at full production. This is in addition to the 26 million litres per year currently used at the mine.

Under current fuel tax credit rates, BHP stands to gain $128 million per year in diesel rebates in the initial development period of the mine, $144 million per year in the intermediate stage, and $178 million per year at full production.

BHP Billiton projects that the Australian Government  by year 16 of the mines life, BHP would have received this $2.6 billion from the Federal Government in diesel rebates alone.

The total South Australian and Federal Government revenues over the 30 year expansion scenario are estimated at $10.5 billion (including royalties to the state government). By year 30, nearly half of this ($5.1 billion) will have returned to BHP in the form of diesel rebates.

The exclusion of diesel rebates from the projected revenue to the South Australian and Federal Government results in a 50 per cent over-projection of economic benefits at the combined state and federal level.

“The fuel tax credits effectively act as a massive subsidy for BHP Billiton, begging the questions as to why the Federal Government is subsidising one of the largest mining companies in the world.” said Nectaria Calan of Friends of the Earth Adelaide.

“The continuation of these subsidies are out of step with the Federal Governments professed commitment to reducing carbon emissions. They provide an economic incentive for a continued reliance on heavily polluting fuels such as diesel, skew comparisons between the economic viability of renewable and non-renewable energy, and shift wealth from Australian taxpayers to multi-billion dollar corporations such as BHP Billiton.”

Once known as the “Big Australian,” BHP is now 76 per cent foreign owned, so whilst the Federal Government is funneling taxpayers money into the company, the vast majority of its profits will end up overseas.

September 30, 2011 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, politics, uranium