Fossil fuel subsidies prop up dying industry

  1. 10,662 Posts.
    Time for a reality check again.

    "It is estimated that those in the fossil fuel business receive more than $10 billion per year in government subsidies, with the mining industry receiving the lion’s share. One of those subsidies is the enticingly named Fuel Tax Credit Scheme. It is worth more than $5 billion per year. Under this scheme if you use diesel for transport on non-public roads you do not pay fuel excise tax. Originally it was primarily aimed at farmers but the biggest beneficiary is the mining industry.
    The huge mining trucks that tower over everything around them are never driven on public roads and actually wouldn’t fit on a normal road. Therefore the diesel that goes into them is covered by this scheme and is tax free. This saves the mining industry billions of dollars every year.
    What is the justification for this subsidy? Is the most profitable industry in Australia going to collapse if it’s not subsidised? We have had a large public debate about giving the car industry $1.5 billion over four years but no debate on why we’re giving the mining industry billions every year.
    If the government is determined to return the budget to surplus, if the government wants to discourage the use of fossil fuel, then it could easily remove just one subsidy to the hugely profitable mining industry and save billions."


    http://www.tai.org.au/node/451
 
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