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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news