Antinuclear

Tony Abbott’s double standards as he supports fossil fuel subsidies

Why does Australian PM Tony Abbott support fossil fuel subsidies? Guardian, Alex White 4 Feb 14 Why does Tony Abbott support $10 billion per year in fossil fuel subsidies but oppose an aid package for food manufacturer SPC-Ardmona?……. the prime minister seems very happy to continue to give taxpayer’s money to fossil fuel companies to the tune of $10 billion per year in subsidies.

the prime minister seems very happy to continue to give taxpayer’s money to fossil fuel companies to the tune of $10 billion per year in subsidies.

The fossil fuel subsidy decision is particularly inconsistent with his stance on industry support for SPC-Ardmona and the car industry. This is a prime minister who in December declared an end to corporate welfare.

But he said “we don’t want to see corporate welfare … we don’t believe in corporate welfare”.

“This government will be very loth to consider requests for subsidies, we will be very loth to do for businesses in trouble the sorts of things they should be doing for themselves,” he warned.

Fossil fuels subsidies are the most pernicious and distorting of subsidies. The biggest in Australia is the fuel tax credit scheme, which is worth $2 billion per year to mining companies, the equivalent of each taxpayer in Australia handing over $182 to the mining companies.

The national president of the Mining Union, Tony Maher called out this squandering of public funds in an article for The Drum:……

Despite global warming posing an imminent threat to Australia, and its predominate cause being the burning of fossil fuels, the Australian government is using your tax dollars to literally pay these fossil fuel companies to pollute.

As I’ve noted in the past, Tony Abbott and his government seem intent on turning Australia into a reckless “charco-state” (the coal equivalent of a petro-state).

These fossil fuel subsidies don’t just pay companies to pollute our air, water and atmosphere. They also distort our markets by making fossil fuels, like diesel and gas, artificially cheap. Special tax treatment for big oil, gas and coal projects allows fossil fuel companies to rapidly depreciate their assets, like drilling rigs. This means they get away with paying taxes that other companies are forced to……. http://www.theguardian.com/environment/southern-crossroads/2014/feb/02/fossil-fuel-subsidies-tony-abbott-spc-ardmona-corporate-welfare

February 4, 2014 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, politics