Complaint lodged with ACCC over inflated Galilee job figures

Job creation claims relating to coal projects in the Galilee Basin have been inflated by 300%, from 9,000 to 27,000, according to a report by economists at The Australia Institute.

The Australia Institute’s Executive Director, Dr Richard Denniss, said the use of input/output modelling used by those championing the Galilee coal projects has been described by the ABS as ‘biased’, the Productivity Commission as ‘abused’ and the NSW Land and Environment Court to be ‘deficient’.

“The whole justification for this project has been job creation claims, but Queensland politicians are using the claims regardless, backed by TV ads repeating the false figures.

“There are big problems with these models which assume there is unlimited labour in the economy and ignore the negative impacts of large mining projects on other mining projects and other industries like agriculture and manufacturing.

In response, GetUp! and lawyers from Environmental Justice Australia (EJA) have lodged a complaint with the Australian Consumer and Competition Commission (ACCC). GetUp! and EJA believe Carmichael mining proponent Adani and the Newman Government misled the public and investors about the employment benefits of the proposed coal mine.

“Mr Newman’s promising the people of Queensland jobs that simply don’t exist and he needs to be held accountable,” said GetUp!’s senior campaigner Sam Regester.

“He’s flogging a dead horse with a make believe whip – the project doesn’t make sense and they’re misleading the public to justify it,” Mr Regester said.

Dr Richard Denniss also pointed to other pressures which meant new coal projects couldn’t be guaranteed.

“We’ve recently seen a drop in coal prices and a Galilee Basin proponent going into administration.

“Even as a commercial investment this project is risky, with Macquarie Bank describing the development of the Galilee Basin as ‘ignoring conventional economics’.

“Both Labor and the LNP have claimed to support the Queensland agriculture and tourism industries (both are bigger employers than the mining sector). The Galilee Basin projects directly conflict with farmers’ interests and risk irreversible damage to the state’s environmental assets,” Dr Denniss said.

Full report available – Here.

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