NSW Minerals Council smacks the Australia Institute

The Australia Institute have released a graphic that shows how much state governments subsidise mining.

australian_mining_final_text_outlined

The NSW Minerals Council returned fire:

Another week, another dodgy anti-mining report from the Australia Institute. This pseudo-political outfit is becoming desperate in its attacks on NSW’s $24 billion mining industry – an industry that directly employs almost 90,000 people across the state.

In its ongoing anti-mining campaign, the Australia Institute has cobbled together a report on so-called ‘industry assistance’ that it claims mining receives.

This latest report should be released while wearing a leather jacket and on water skis.

The Australia Institute is really clutching at straws by including investment in the upgrades of Newcastle Port and Port Kembla, and NSW Government spending on its own mine development, as general industry assistance in NSW.

The report also completely ignores over $120m in fees and levies the industry pays the NSW Government every year, including the Mine Safety Levy, Coal Washeries Rejects Levy, Mine Subsidence Levy, Administration Levy, and the New Frontiers Levy, as well as hundreds of millions in payroll taxes and millions in environmental licence fees.

Even if the Australia Institute’s findings were accurate, the taxpayers of NSW are receiving mining royalties valued at over $1.3 billion each year – around ten times the amount the Australia Institute claims the industry receives in ‘subsidies’.

The Productivity Commission has also debunked the myth around ‘government assistance’ to the mining industry.

In its annual Trade and Assistance Review released in June last year, the Productivity Commission found the effective rate of government assistance to the mining industry in Australia is ‘negligible’.

It’s time the Australia Institute was recognised for what it is – an anti-mining pseudo-political organisation dressed up as a think-tank.

Ouch. That’s got to hurt.

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70 Responses to NSW Minerals Council smacks the Australia Institute

  1. Supplice

    Coppers, teachers, doctors and nurses take home half a million each? FMD I’m in the wrong game.

  2. Infidel Tiger

    The left are absolutely determined to bankrupt this country. They have already squandered every natural advantage we had, now the last step is to close mining down.

    Some turd on the wireless this morning had a message read out that it was fantastic news BHP were letting 3000 people go because it would keep inflation under control.

  3. H B Bear

    Ouch. That’s got to hurt.

    Sinc – I think you may have missed the real audience here. Like Greens senator Scott Ludlam’s defamatory speech to an empty Senate chamber ahead of the WA Senate re-run, Richard Dennnisss joke think tank is just delivering the sort of dog whistle that Pauline Hanson would have been proud to deliver.

    Of course, it will be duly reported by the Love Media, tweeted by the J school kiddies, and Tubbsie Milne will be positively moist with excitement.

    As Used Carr would say, pure Kabuki theatre or more like Punch & Judy where an overwhelmingly juvenile audience gets to hiss at the villain.

  4. Infidel Tiger

    A 49 cents in the dollar tax rate is a 51 cents in the dollar subsidy to a lefty.

    Lamp pole, piano wire, now.

  5. .

    I can’t believe this idiocy and dishonesty.

    Mining is NOT subsidised.

    It subsidises other industries.

    It has a negative rate of tariff protection and other industry assistance.

  6. Rabz

    So seriously, what are these imbecile luddites proposing if mining were to vanish – tofu space cakes, vaginal knitting and dreamtime yarning under the stars?

  7. Token

    Ouch. That’s got to hurt.

    No, the very visual but dishonest propaganda stands unanswered across Twitter & Facebook.

    The very correct and eloquent rebuttal is like responding to an MMA fighter by posting a notice in the town square.

  8. Tel

    The Australia Institute is really clutching at straws by including investment in the upgrades of Newcastle Port and Port Kembla, and NSW Government spending on its own mine development, as general industry assistance in NSW

    The same people will tell you that only government can build infrastructure, and they won’t even blink.

  9. .

    The same people will tell you that only would only allow government can to build infrastructure…

  10. Token

    It’s time the Australia Institute was recognised for what it is – an anti-mining pseudo-political organisation dressed up as a think-tank.

    You can bet the SA (and soon Vic) Liars Party governments will provide great lashings of public cash as a reward for its partisan act, and the Labor-Lite Party will allow the legislation to pass unquestioned.

  11. Tom

    The Australia Institute (Est. 1994) is a carefully constructed subsidiary of the Greens designed as a holding cell for white ants denied a home when the Communist Party of Australia went arse up in 1991. Have a gander at the (edited) CV’s of these dregs:

    Richard Denniss – Executive Director
    Prior to taking up his current position Richard was the Strategy Adviser to the Leader of the Australian Greens, Senator Bob Brown.
    Faith Brown – Executive Assistant to Richard Denniss
    She has been an Executive Assistant for the past eight years and is passionate about social justice.
    Ben Oquist – Director of Strategy
    Ben is a former Chief of Staff to the Leader of the Australian Greens Senator Bob Brown and Senator Christine Milne.
    David Richardson – Senior Research Fellow
    During the Hawke/Keating Governments David worked for Ministers Brian Howe and Senator Nick Bolkus.
    Matt Grudnoff – Senior Economist
    He has also worked for the Department of Climate Change and Energy Efficiency. His research interests are in climate change policy
    Roderick Campbell – Research Fellow
    He has worked across a range of resource and environmental economics projects including project assessment, tourism economics and environmental valuation.
    Mark Ogge – Public Engagement Officer
    Mark is a fine artist and former Operations Director at Beyond Zero Emissions where he helped initiate and direct the award-winning Zero Carbon Australia 2020 project. At The Australia Institute his role involves engaging industries and communities affected by the expansion of coal and gas mining.

    Molly Johnson – Research Assistant
    Molly studied at the Australian National University graduating with a Bachelor of Interdisciplinary Studies (Sustainability) (Honours) with majors in Human Ecology and Global Change Science.
    Tom Swann – Research Assistant
    Tom is a student in the Master of Climate Change Program at the Australian National University. He works on fossil fuel divestment, energy and climate policy, and how civic institutions best provide and protect public goods.

  12. Roger

    I caught a few minutes of an interview with a mining advocate on the radio this morning – the ABC even! (it may have been the Mineral’s Council bloke) – he was seriously kicking some Australia Institute arse! :0)

  13. egg_

    It’s time the Australia Institute was recognised for what it is – an anti-mining pseudo-political organisation dressed up as a think-tank.

    A cross-dressing think tank?
    How many ABCs ($1.n bn) does it cost to run?

  14. .

    Mark Ogge – Public Engagement Officer
    Mark is a fine artist and former Operations Director at Beyond Zero Emissions where he helped initiate and direct the award-winning Zero Carbon Australia 2020 project. At The Australia Institute his role involves engaging industries and communities affected by the expansion of coal and gas mining.

    Good luck with that, champion.

  15. Infidel Tiger

    I caught a few minutes of an interview with a mining advocate on the radio this morning – the ABC even! (it may have been the Mineral’s Council bloke) – he was seriously kicking some Australia Institute arse! :0)

    Doesn’t matter. This battle is won and lost on social media.

    As far as the general public are now concerned, mining is a drain on the economy.

  16. .

    Roger? Was it Mitch Hooke? He usually is bang on, is cordial but doesn’t take shit from people and cuts to the chase.

  17. Roger

    “Tom is a student in the Master of Climate Change Program at the Australian National University. He works on fossil fuel divestment, energy and climate policy, and how civic institutions best provide and protect public goods.”

    “Master of Climate Change Program”?

    And our tax dollars are no doubt supporting him.

  18. Roger

    No, it wasn’t Mitch Hooke (yes, he is excellent too); the announcer gave his name but I was doing the school run and my daughter was distracting me at that point.

  19. twostix

    How many teachers does the Australian Institution cost?

  20. Roger

    Doesn’t matter. This battle is won and lost on social media.
    In Sydney and Melbourne, maybe, but not here in Queensland, IT.

  21. Des Deskperson

    ‘Mark Ogge – Public Engagement Officer
    Mark is a fine artist ‘

    Check out Mark’s art here:

    http://markogge.com/paintings/outdoor/

    A kind person would describe it as ‘competent’.

  22. calli

    I was wondering what a Bachelor of Interdisciplinary Studes (Sustainability) might entail. I did a very silly thing and looked…linky.

    B Ark material writ large.

  23. Rabz

    A kind person would describe it as ‘competent’.

    And an unkind person (such as myself) would describe it as ‘shit’.

  24. brc

    IT is right. This was tailor made to easily share on social media.

    Social media is used to share when it makes the sharer look good to their followers.

    For them, there is no greater drapes of respectability and ‘right on’-ness than sharing an info graphic about evil miners.

    The response to have a sarcastically worded press release is stupid.

    What they should have done is returned fire with an info graphic about how many employees, royalties and exports the mining industry contributes on a state by state basis. It could have included the paltry tax revenues that non-mining states receive in comparison. The numbers don’t even need to be accurate – you could include the barmaids who server miners in local bars. The Australia Institute is clearly not bothered by accuracy, so why bother returning the favour?

    Hopeless response. Absolutely useless. The TV ad series is the only decent response the mining industry ever did, and that was because they were up against Wayne ‘born in the USA’ Swan and Kevin ‘I’m here to help’ Rudd, two of the slowest moving intellects to ever grace parliament house.

  25. Roger

    Brendan Pearson it was, dot. CEO of the Minerals Council of Australia.

  26. Leo G

    Since when is the cost of a state-financed coal port, for example, a subsidy when the terminals at the port are subsequently leased at $billions per terminal?

  27. MemoryVault

    As far as the general public are now concerned, mining is a drain on the economy.

    True IT, but the mining companies have nobody but themselves to blame.
    It has been obvious for well over a decade that the greenfilth were out to destroy them, and their idea of a strategy to handle it has been to sling groups like Greenpeace healthy donations and employ more “environmental officers”, and hope that eventually the greenfilth would come to love them.

    Or worse, jump on the bandwagon themselves as the coal industry did with the perpetual motion machine otherwise known as “carbon sequestration”. When you’ve got your snout firmly in the public trough you’re bound to get jostled by the other pigs from time to time.

  28. lotocoti

    From their annual report:

    With no formal political or commercial ties, the Institute is in a position to maintain its independence while advancing a vision for a fair and progressive Australia.

    Lucky they slipped formal in there, otherwise some may jump to the erroneous conclusion that Bob Brown, Tubbsy Milne and Graeme Wood have some influence with the board.
    The ACTU president only turns up for the finger-food.

  29. Tom

    Calli, notice the calling card of the Greenfilth communist? They are all passionate about sowshall jarstice, the ‘viroment and the fewcha.

  30. Andrew

    Tubbsie Milne will be positively moist with excitement.

    FMD, don’t EVER say disgusting shit like that here!

    Since when is the cost of a state-financed coal port, for example, a subsidy when the terminals at the port are subsequently leased at $billions per terminal?

    Relative to the default position – that mining companies are charged billions of $ for terminals that don’t exist. Measured against that baseline, actually BUILDING the subsidies from the public purse is a subsidy. You think I’m drawing an extreme bow there, it’s really no different to miners paying the road tax and then (after extending the govt an interest free loan), applying for a refund on the diesel attributable to offroad use. THAT is a “subidy” according to these grubs.

  31. Infidel Tiger

    The same arseclowns consider the NBN a worthy investment.

    This is the level of stupid they are disseminating:

    http://www.tai.org.au/content/where-can-we-find-budget-savings

  32. Infidel Tiger

    Tubbsie Milne will be positively moist with excitement.

    She’ll drown some spiders if that keeps up.

  33. manalive

    … and founded by Clive ‘suspend democracy’ Hamilton.

  34. Gab

    Why does the Australia Institute hate mining in Australia? Why do they want mining in Australia to close down? Why does the Australia Institute feel the need to lie and obfuscate to get it’s message across? Why is the Australia Institute targeting mining industry?

    How much does the Australia Institute add to the economy each year?

  35. Token

    True IT, but the mining companies have nobody but themselves to blame.

    They were pretty quick to use the media when Rudd was tricked into proposing the Mining Tax a few years back. One would think they can be equally as nimble in the space where the battle of ideas, or the battle against the ideas from the mind of the moocher from the 1840′s, occur.

  36. Token

    Why does the Australia Institute hate mining in Australia?

    Zing, that is the ad. Simple and very effective.

  37. DMS

    Jeez IT, I was a bit sick in my mouth then

  38. Cynic

    Agreed. The work by the Australia Institute is alarmist and pretty misleading.

    But the NSW Ministerial Council saying that $492 million in net assistance is ‘negligible’ doesn’t help. That level of assistance still puts mining in the top 10 industries in terms of assistance received and it is not as if the fossil fuel industry can make a legitimate claim to assistance under any infant industry argument. If you live in a glass house, don’t throw stones…..

    The mining and energy sectors are their own worst enemy as they don’t collate and report data on what the industry is actually spending on reducing risks to the environment from their actions, particularly expenditure above their minimum regulatory requirement. If they did that, they might not cop as much flack.

  39. evcricket

    OUCH oh burn Australia Institute. Got compared to fonzy! How edgy and contemporary!

    They also don’t mention exactly how much they get in subsidies in return, and don’t mention the almost 8 billion in Queensland. If it was so profitable why does the coal industry require assistance from state governments?
    http://www.businessspectator.com.au/news/2014/6/24/policy-politics/queensland-coal-received-76-billion-over-six-years

  40. Gab

    But the NSW Ministerial Council saying that $492 million in net assistance is ‘negligible’ doesn’t help.

    The ABC gets $1.4 billion per year in assistance and it produces nothing of value and has no positive impact on the economy. At least mining generates value and jobs for this country.

  41. Tintarella di Luna

    Mark is a fine artist ‘

    Would that be a typo and should read ” Mark is a fine bullshit artist”?

  42. egg_

    A cross-dressing think tank?

    Ah, Clive Hamilton’s democracy suspenders, now I get it…

  43. Infidel Tiger

    Evcricket links to another dodgy study by Australia’s worst economist at Australia’s worst business site, that can’t even differentiate between billions and millions.

  44. .

    evcricket
    #1358476, posted on June 24, 2014 at 4:28 pm
    OUCH oh burn Australia Institute. Got compared to fonzy! How edgy and contemporary!

    They also don’t mention exactly how much they get in subsidies in return, and don’t mention the almost 8 billion in Queensland

    No. You are lying.

    Mining does not (on a large scale) get subsidies. It certainly DOES NOT get net subsidies.

    It pays discriminatory rates of taxation. It subsidises other industries and for sectors that don’t pay their own way for government.

    It has a negligible, negative rate of tariff and subsidies assistance.

    Please read some FACTS from the Productivity Commission, you illiterate arsewipe.

  45. JC

    Interesting… So real life moocher cricket is complaining about make believe moochers. This reminds me of of vids you sometimes see where a UN truck filled with sacks of flour pulls up in a dusty village and everyone starts jostling for position.

    Cricket just jealous of keeping his spot at the front of the crowd as he knows he may have to share the loot.

  46. Baldrick

    … and of course ‘their ABC‘ swallows the bait, hook, line and sinker-

    Mining industry receives billions of dollars in state subsidies: report-
    The astounding profitability of mining has helped drive Australia’s prosperity over the past decade, but a report released today shows the sector has also been a major recipient of state government largesse.

    Minerals Council of Australia boss, Brendan Pearson sums up the report very nicely:
    “It is an affront to the mining industry for the research arm of the Greens Party to again suggest that the industry is receiving billions of dollars in subsidies, when in the last six years alone, the mining industry’s contributed $121 billion in federal and state revenues.”

  47. Mk50 of Brisbane, Henchman to the VRWC

    This is said:

    …and Tubbsie Milne will be positively moist with excitement.

    [shudder]

    And then evcricket turns up.

    Coincidence?

    I don’t think so. Ev’s got a …. thing…. for Tubbsy

    (So SFW it rocks!)

  48. brc

    Mining in this country is not subsidised. Even if it does get tax refunds on R&D and off road diesel use, it pays far more in royalties and taxes then it receives. End of story.

    Now. Let’s talk about wind farms and solar installations. How many schools could we open if we dropped the RET and immediately stopped all FITs?

    Now there is some serious subsidy mining.

    A useful test for detecting if something is subsidy based or not. Ask yourself this : would the company/industry/activity exist if there were no government subsidies?

    Answers.
    Mining : yes. Of course. It is the oldest of professions, seeking value from the earth.
    Renewables : No. Even threatening to reduce their subsidies results in alarmist articles and Greens trying to lie down with Motoring Parties and Clive Palmer…who owns a mine.

  49. .

    The tagline is not a selling point.

    Do we really need more cops? Schools?

    We arguably might need more hospitals. They take state governments decades to announce one before the first sod is turned.

    I don’t blame the mining industry for this.

  50. Steve

    I assume they are just jealous they didn’t think to pick up some tenements before the mining boom.

  51. MemoryVault

    What they should have done is returned fire with an info graphic about how many employees, royalties and exports the mining industry contributes on a state by state basis. It could have included the paltry tax revenues that non-mining states receive in comparison.

    Far too complicated for an infographic.
    Two pics, side by side.
    LHS pic is a collage of notable Oz icons – Opera House-type stuff.
    RHS pic is a collage of abandoned, decrepit buildings from Detroit.
    LHS pic caption: Oz WITH mining.
    RHS pic caption: Oz WITHOUT mining.
    Meme across bottom in big letters: YOU DECIDE.

    Kids today may be easily led, but they aren’t stupid.

  52. Lee

    Calm down everyone. They made a mistake. The title is actually “HOW MUCH HAVE STATE AND FEDERAL GREEN SUBSIDIES COST YOU?” And the numbers are probably double….

  53. .

    MV, that sounds like you should have worked on Madison Avenue. Good stuff.

    IT – hyperreality only works on ballers like Ray Dalio and myself.

  54. egg_

    “HOW MUCH HAVE STATE AND FEDERAL GREEN SUBSIDIES COST YOU?”

    Yup, that’s the subtext – how many hospital beds* has the Green wank cost us?

    *The ol’ faithful metric.

  55. Leo G

    The report claims Queensland will have subsidised coal transport by rail between 2008-9 and 2013-14 to the tune of $7.61 billion. But isn’t rail freight a government business in Queensland?

  56. 3d1k

    TAI really is a propaganda outfit – union affiliated and Greens Chief of Staff on board.

    What I find really dispiriting is the Australian media’s preparedness to publish unquestioned the so-called ‘research’ emanating from TAI. Do our journalists lack competency, investigative skills or even simply a healthy dose of skepticism?

    Yes. All too many do.

  57. Diogenes

    LeoG
    No. The initial public offering of the freight and coal businesses occurred on Monday 22 November 2010, with the sale raising $4.6 billion. QR employees who will be part of the new entity will have their jobs guaranteed for two years, and receive $1000 worth of shares and the option to purchase an additional $4000 of shares at a discounted price. The Queensland Government will initially retain a 25 to 40 per cent shareholding in the publicly floated company, with Queensland residents given preference in purchasing the remaining shares.

  58. pete m

    evcricket – what the fuck is “extreme gardening” and why is it your first descriptor?

  59. wreckage

    SO somebody do a graphic like this for green subsidies, please. And another one for interest payments.

  60. wreckage

    They also don’t mention exactly how much they get in subsidies in return, and don’t mention the almost 8 billion in Queensland. If it was so profitable why does the coal industry require assistance from state governments?

    Yes, governments subsidise mining to the hilt, because they are shape-shifting lizards from planet X who want to murder the earth’s precious planet-soul.

  61. wreckage

    It’s all so simple, really, once you accept the shape-sifting lizard people hypothesis.

  62. Leo G

    The alleged 5-year total of Qld government subsidies to Aurizon , just for the for coal transport sector of its business, at $7.61 billion, needs explanation. The total equity reported in the 2013 annual report was only $5.07 billion.

  63. AP

    Bachelor of Interdisciplinary Studies (Sustainability) (Honours) with majors in Human Ecology and Global Change Science.

    Hurts my brain to even try and think about the kinds of rubbish taught in this “degree”. WTF is “Global Change Science”? How demeaning for actual scientists.

    Why is the taxpayer subsidising this junk education?

  64. .

    Leo G
    #1358961, posted on June 24, 2014 at 9:40 pm
    The alleged 5-year total of Qld government subsidies to Aurizon , just for the for coal transport sector of its business, at $7.61 billion, needs explanation. The total equity reported in the 2013 annual report was only $5.07 billion.

    Well Leo. Refer to the post above yours.

    wreckage
    #1358793, posted on June 24, 2014 at 8:15 pm
    It’s all so simple, really, once you accept the shape-sifting lizard people hypothesis.

    As many Greens and fringe ALP nutters actually believe.

  65. blind freddy

    Feel another “Avatar” movie in the offing!!!!

  66. Robert O.

    If any knows a little about the balance of trade it’s the miners that keep it in the black, sometimes. If we stop exporting coal, for example, where is the money going to come from to pay for all the public servants, politicians, environmentalists, lawyers …? And if the prices of iron and coal keep going south how do we pay for our imports and all the administrative costs of the country?

  67. Twodogs

    Hang on a minute. Where do the taxes come from to pay for hospitals, police, schools etc… not from the hospitals, police or schools… maybe it comes from the miners in the first place. without the bloody miners and their business, you can’t have the rest anyway…

  68. MT Isa Miner

    .

    #1358391, posted on June 24, 2014 at 3:34 pm

    I can’t believe this idiocy and dishonesty.

    Mining is NOT subsidised.

    It subsidises other industries.

    It has a negative rate of tariff protection and other industry assistance.

    Don’t bother Dot. No-one is listening except us and you got no” fancy colouring in picher” to help us understand.

  69. Chris Rath

    The Australian mining industry paid $21 billion in company tax and royalties in 2011-12 alone – double its payment in 2006-07.

    A single wind turbine produces $150,000 of electricity but gets $500,000 in govt subsidies.

    Manufacturing makes up 9% of the economy and gets 70% of the industry assistance. Mining makes up 11% of economy, but only 5% of assistance.

    However, is mining “industry assistance” really a subsidy?
    The fuel excise is paid for the upkeep of roads. Vehicles that don’t use public roads, such as mining trucks or farmer’s tractors don’t pay the excise. Pretty simple really.
    Not paying a tax is not the same as receiving a subsidy from other taxpayers.

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