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September 2015
Abbot Point Growth Gateway Project: Submission on EIS
The Australia Institute has made a submission on the draft Environmental Impact Statement (EIS) for the proposed Abbot Point Growth Gateway Project. The EIS economic assessment is based on flawed economic analysis and ignores the most important economic questions around the project – is it likely to proceed and if so, is it in the
Establishing a gas community benefits fund
The NSW Government is currently accepting submissions on how to establish a community benefits fund from the potential development of a coal seam gas (CSG) industry in the state. A Discussion Paper has been published by the Division of Resources and Energy. The Australia Institute has written extensively on the economics of gas in Australia.
Mt Thorley-Warkworth Continuation Project
The Planning Assessment Commission for the Mt Thorley-Warkworth Continuation Project (Warkworth Project) has requested further submissions relating to a proposal to change the State Environmental Planning Policy (mining, petroleum production and extractive industries) (Mining SEPP). The current Mining SEPP requires consent authorities to give the “significance” of a resource the greatest weight in their assessment
Shipping Legislation Amendment Bill 2015 – Submission
The Senate Rural and Regional Affairs and Transport Legislation Committee is currently examining the Shipping Legislation Amendment Bill 2015. The purpose of the Bill is to increase access to Australian coastal shipping for foreign crewed ships in an attempt to make coastal shipping cheaper. The proposed Shipping Legislation Amendment Bill 2015 is likely to reduce
Springvale mine extension project : Submission
The Australia Institute made a submission to the September 2015 Planning Assessment Commission hearing on the Springvale coal mine extension proposal. Key points: Economic assessment of the project fails to comply with NSW government guidelines and widely-accepted professional standards. No indication is provided as to the financial viability of the mine, making all claimed economic
August 2015
Funny money: Submission to Senate Standing Committee on Economics inquiry into foreign bribery
The Australia Institute and the Jubilee Australia Research Centre have made a submission to the Senate Standing Committee on Economics inquiry into Australia’s foreign bribery laws and their implementation. Our submission is based on research conducted by the CAER – Corporate Analysis. Enhanced Responsibility, an independent environmental, social and governance research house. An increasing number
Passing gas: Economic myths around the Northern Territory’s North East Gas Interconnector pipeline
The North East Gas Interconnector (NEGI) is a proposed gas pipeline between the Northern Territory and the eastern states. The project is strongly endorsed by gas companies, the Territory government and governments in other states, but analysis is lacking as to the actual benefits to Territorians and the rest of Australia.While there is a shortage
July 2015
Terminal 4 Planning Assessment Commission determination meeting
The Australia Institute made a submission to the Planning Assessment Commission for Newcastle’s Terminal 4 coal project. We oppose the Terminal 4 project. For the project’s capacity to be utilised an increase in the rate of coal extraction in NSW is required beyond the continuation and replacement of existing mines. Such increases are unlikely to
Submission on NSW Integrated Mining Policy
The Australia Institute made a submission to the NSW Department of Planning and Environment’s Integrated Mining Policy during its exhibition period. A problem with the NSW planning system relating to mine assessment in recent years has been economic assessment. There are two areas in need of reform: The quality of economic assessment and enforcement of
Submission: Report on proposed Watermark Coal Project
The Australia Institute made written and in-person submissions to the Planning Assessment Commission on Shenhua’s Watermark coal project in June 2014. The economic and agricultural assessment in the Environmental Impact Statement (EIS) for the Watermark project is flawed. It is based on biased modelling techniques and ignores the risks the project presents to the region’s
The goon show – How the tax system works to subsidise cheap wine and alcohol consumption
This paper presents an overview of the Wine Equalisation Tax (WET) in Australia and compares the current system with some reform alternatives and systems in other countries. When the GST was introduced in July 2000, wine products were given special tax status. While beer and spirits attract an excise based on the volume of alcohol
Submission: Warkworth and Mount Thorley Continuation Projects
The Australia Institute made a presentation to the Planning and Assessment Commission for the Warkworth Continuation Project in Singleton on December 18 2014. Independent assessment has shown several times that the benefits of the Warkworth Project do not outweigh its considerable environmental and social costs. Judges, peer reviewers and the wider community have found deep
June 2015
Get Regular Excise:The case to reindex the fuel excise
The Howard Government decision in 2001 to cut indexation has cost the budget more than $46 billion in tax revenue to date. If no change is made the total cost to the budget is projected to top $160 billion by 2025. Additional carbon dioxide emissions attributable to the policy are projected to reach 16 million
Outclassed: How Queensland’s schools and social services are affected by mining industry assistance and lobbying
Queensland spends less on social services than the rest of Australia in per capita terms, despite being a large state with a growing population. In the major areas of health and education, Queensland spends less per person than any other state except NSW and Victoria – both of which benefit from large populations in relatively
Powers of deduction: Tax deductions, environmental organisations and the mining industry
Donations to environment organisations in Australia are tax deductible as long as the organisation in question is listed on the Commonwealth Register of Environmental Organisations. This listing gives an organisation Deductible Gift Recipient (DGR) status. A parliamentary inquiry is looking into the Register, largely at the behest of the mining industry. Parts of the mining
Submission: Springvale Planning Assessment Commission
The Australia Institute made a submission to the Planning Assessment Commission on the Springvale Colliery Extension Proposal. Our submission relates to the various economic assessments and reviews of economic assessments in relation to this project. Controversy has surrounded the economic assessment of the Springvale project, resulting in various assessments, submissions, responses and reviews. None of
March 2015
Coal in the Southern Highlands economy
Mining plays a small role in the economy of the Southern Highlands. The major employing industries are service industries, manufacturing and construction. While tourism is not separately counted in most statistical publications, the strong employment numbers in retail, accommodation, food and transport industry categories suggest it plays a strong role. Agriculture is a relatively small
Submission: Mt Owen continued operations project
The Deloitte Access Economics (DAE) assessment of the economic impacts of the Mt Owen continued operations project has significant flaws which overstate the value of the project and mislead decision makers. The assessment does not make clear the costs and the benefits of the project to NSW, contrary to Director Generals Requirements. Instead, it compares
February 2015
Submission: Inquiry into Unconventional Gas (Fracking)
The Australia Institute made a submission to South Australia’s Natural Resources Committee Inquiry into unconventional gas. Our submission focuses on the potential net economic outcomes to the region and the rest of the state. The net economic effects of gas development in South Australia are likely to be small: There would be minimal impact on
Submission: Select committee into certain aspects of Queensland Government administration related to Commonwealth Government affairs
The Australia Institute made a submission to the Select Committee inquiry into Certain Aspects of Queensland Government Administration related to Commonwealth Government Affairs. Our submission focused on the use of economics in major project assessment processes. Approval processes for major projects in Queensland have seen the misuse of various tools of economic assessment. In particular
Submission: Abbott Point Port and Wetland Project and Abbott Point Dredging and Onshore Placement of Dredged Material Project
In December 2014, the Queensland Government sought submissions on the Preliminary Documentation around two related proposals to expand the coal port at Abbot Point. The Australia Institute made a submission on the Preliminary Documentation. Our submission showed that the Preliminary Documentation is inadequate as it contains no cost benefit analysis and no economic assessment of
Submission: Draft industry action plan
The draft NSW Minerals Industry Action Plan presents recommendations that maximise the interests of the minerals industry. While this is not surprising, the aims of the NSW government should be to maximise the welfare of the community rather than any particular industry. In some areas, the interests of the industry and the government are aligned,
January 2015
Are there 27,000 jobs in the Galilee Basin?
In recent media statements senior Queensland Government members have claimed that development of coal mines in Queensland’s Galilee Basin will create 27,000 jobs. No source for this figure is provided in the media statements and no such estimate features in the Government’s Galilee Basin Strategy. No source is provided for this estimate. It is
Queensland Taxpayers’ $2 billion Abbot Point Subsidies Bill
The Newman Government has subsidised controversial coal mining port expansion to the tune of $2 billion, Australia Institute Research has revealed. The Abbot Point project has not undergone a cost benefit analysis. This despite Queensland Treasurer, Tim Nichols, calling for cost benefit analysis on all major government projects. Mining projects which were set to feed
November 2014
Any way the wind blows: Power generation in South Australia
South Australia leads the country in several aspects of renewable energy development. The state has the highest installed capacity of wind generation – more than 1,200 megawatts. In 2013-14, 37 per cent of electricity generated in the state came from wind and rooftop solar, more than any other state in the country. South Australia’s wind
All talk, no action: the coal industry and energy poverty
The problems of energy poverty are real and large. Promising solutions are becoming available and many organisations are working to hasten their implementation. The coal industry is very vocal in promoting energy poverty and pushing coal as a solution to it. But coal companies are not, in general, major contributors to energy poverty alleviation efforts.
Airly Mine Extension Proposal
The Airly mine is an underground thermal coal mine in the Capertee Valley, NSW. A proposal to expand the mine is currently being assessed by the NSW Department of Planning and the Environment. The Australia Institute made a submission on the expansion proposal relating to its economic assessment. The Economic Assessment of the Airly Mine
October 2014
Coalpac: Invincible and Cullen Valley modifications
In September 2014 the Australia Institute made a written submission and in-person presentation to the NSW Planning and Assessment Commission on the proposal to extend the Invincible and Cullen Valley mines, owned by Coalpac. The mines are in a sensitive environmental area near the Blue Mountains World Heritage Area. The key points of our submission
Economics, agriculture and native vegetation in NSW
Native vegetation and regulations relating to its management have a minimal economic effect on agriculture in New South Wales (NSW). The state produces between $10 and $16 billion in agricultural output per year, dependent largely on rainfall and commodity prices. When rainfall is good and commodity prices are high, output is high. Less rainfall and
The mouse that roars: Coal in the Queensland economy
Queensland’s economy is based on service industries. Service industries employ nearly three quarters of the Queensland workforce and make up two thirds of economic output. 99 per cent of Queenslanders do not work in the coal industry. 96 per cent of Queensland government revenue does not come from coal royalties. 93 per cent of Queensland’s