Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ’s subsidies of coal and rail are nothing like Australia’s

NZ’s subsidies of coal and rail are nothing like Australia’s

By Pam Graham

June 24 (BusinessDesk) – Australian state governments spent A$17.6 billion on subsidies for mineral and fossil fuel industries over six years, including A$8 billion to help transport coal, according to a report.

The Australia Institute says it’s the first time state subsidies have been added up and they are on top of Federal subsidies, estimated at A$4.5 billion in 2013.

The report reveals the extent of Australian state government support for rail infrastructure for mining companies at a time when New Zealand is rebuilding its rail network and bailing out state-owned coal miner Solid Energy, a major rail user.

Transport Minister Gerry Brownlee recently told parliament the government has poured billions of dollars into KiwiRail after the previous Labour-led government bought back a lemon.

“Sometimes it's hard to kick life into something that's fundamentally dead," he said.

The Australia Institute calculates Queensland has kicked more than A$7.6 billion into coal transport and concessions over six years.

Queensland’s expenditure on mineral and fossil fuel industries in 2013-14 is similar to the amount spent on disability services and capital expenditure on hospitals.

The Queensland government spent A$831 million on the Goonyella-Abbot Point Expansion, mainly between 2010 and 2012. The project, located in central Queensland’s Bowen Basin is often referred to as the missing link project, as it connected two coal railway systems. It enables coal mines that were previously only able to ship coal out of Hay Point, near Mackay, to rail coal to Abbot Point near Bowen.

The report also says those hailing rail privatisations in Australia as a successes haven’t always counted the subsidies put into the companies before they were sold.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news