MINERALS SECTOR SUBSIDY FREE: PRODUCTIVITY COMMISSION

In a report released today, the Productivity Commission (PC) has again concluded that the mining industry receives negligible assistance from the Federal Government.

The PC report, Trade and Investment Review 2013-14, concludes that:

'The estimated effective rate of assistance from tariff and budgetary assistance for Mining is negligible.'1

The report notes that the effective rate of assistance for the mining industry has fallen from 0.2 per cent to 0.1 per cent over the last year.

The PC's finding is consistent with the message successive Australian governments have reiterated to their G20 partners that Australia does not maintain fossil fuel subsidies.2

The PC finding provides a (further) comprehensive rebuttal of the proposition, routinely peddled by anti-mining groups and the Greens Party that the mining sector benefits from public subsidies. 

 

 

[1] Productivity Commission, Trade and Investment Review 2013-14, Canberra, p.114.

[2] See Australian Government, G20 Commitments on Fossil Fuel Subsides (documents released under a Freedom of Information request) and Energy White Paper 2012, p.100.  On the fuel tax credit, the Minister for Industry and Science, the Hon Ian Macfarlane MP, has stated: ‘It had always been a given that if you didn't use fuel on roads you didn't pay the tax.  That's the case with the farming industry and the mining industry’ (Ian Macfarlane, quoted in ‘Cut to diesel rebate a “cash grab”: Libs’, Sydney Morning Herald, 22 March 2012).

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