Coal in the Coalition

Words by Emma Goldrick

A recent analysis report by the Institute of Energy, Economics and Financial Analysis concluded that Australian governments will be giving $4.4 billion in effective subsidies to the Adani Carmichael coal project. The report explicitly stated that the Adani coal mine project would otherwise be “unbankable and unviable” without the government subsidies. The coalition awarding subsidies to the Adani project shows the embedded irony of the conservatives continuously arguing that coal provides the foundation to our economy, whilst using taxpayers money to do so. The coalition in their support of the Adani project and coal, in general, uses the age-old argument that Australia’s affluence can be afforded to industries such as fossil fuel, yet here we are seeing that industry only exists through the money paid in taxes by average citizens. 

The report continued by stating the Adani Coal mine will also be supported by public handouts, tax breaks and ‘special treatment’. Speculations claim that the subsidies are being provided in an effort to gain jobs and royalties through the operation of the coal mine. The analysis stated that a “royalties holiday deal” which is currently under negotiation with the Queensland state government and the Indian owned Adani Carmichael conglomerate would mean that the enormous capital subsidies awarded to the mine would be coming from the pockets of Australian taxpayers. In reference to the royalties holiday deal, the report stated “In total, the royalty holiday would reduce Adani’s capital employed by some $900m by year seven. This is a massive financial subsidy. Given the three-year construction timeline, it would mean zero royalties are likely to be paid by the Adani Group in the coming decade”. 

The Adani Carmichael released a detailed statement in response to the report that the mine is to receive favourable deals and tax concessions over the next 30 years. Adani attempted to undermine the report by claiming that the institute is “known for publishing alarmist papers that attempt to discredit the fossil fuel industry”.  

This is not the first time that the coal industry has infiltrated politics to further their agenda. At the beginning of 2019, Greenpeace released their “Dirty Power” report authored by the investigative journalist Michael West. “Dirty Power” demonstrates how a network of interconnected industry, political and lobbying arms have worked together to keep coal paramount to Australia's economy. The report exposed the coal industries astonishing political support from the coalition. Michael West through countless interviews with political insiders and keynote industry staffers exposes how the Morrison coalition’s senior staff and other members of the government are made up of former executives and employees of the coal industry and its lobbyists. Coal is the number one leading cause of environmental destruction in Australia, alongside the agricultural industry. The government's support and connections to the coal industry demonstrate why new coal is being fostered and subsidised throughout the country. 

Australias highest levels of government showcases a web of coal lobbyists and other beneficiaries from the industry, determined to ensure the prosperous nature of coal in Australia. The unconditional funding and subsidies awarded to the Adani Carmichael Mine have exposed the severe level of corruption in the Australia parliament that puts the future of our environment at risk.