Monday, 2 December 2019
That the Senate—
(a) notes that:
(i) in August 2019, the Institute of Energy Economics and Financial Analysis (IEEFA) released a briefing note concluding that the Adani Group would receive over $4.4 billion in public subsidies from the Australian and Queensland Governments over the 30-year project life of the Carmichael thermal coal mine, including:
(A) a royalties holiday deal with the Queensland government, the details of which are due to be announced by 30 November 2019,
(B) fuel tax credits, which IEEFA estimates equate to $2.4 billion over the 30-year life of the project,
(C) billions of litres of water, and
(D) various corporate tax breaks, and
(ii) the IEEFA conclude that the Adani Carmichael thermal coal mine project would not open nor survive without billions of dollars in subsidies; and
(b) calls on the Federal Government to:
(i) recognise that the Adani Carmichael mine would not be viable without significant taxpayer support, and
(ii) withdraw its subsidised support of the project.
The Adani Carmichael mine does not receive government subsidies. It has met all of its state and Commonwealth approvals and will create around 1,500 direct jobs and almost 7,000 supporting jobs. The mining industry employed more than 54,000 people last year and pays more than $6 billion annually in royalties, enabling new investment in roads, hospitals and schools. The coal industry is providing jobs in communities across rural and regional Australia.
Labor won't be supporting the Greens motion and does not accept the assertions in the wording of the motion. When the Queensland government announced the Resources Regional Development Framework in 2017 it was made clear that, when royalties are deferred under a Royalty Deferral and Repayment Agreement, they have to be repaid in full with interest and with security of payment in place. The precedent for a Royalty Deferral and Repayment Agreement was set in August this year, when New Century concluded an RDRA for its zinc mine in the north-west minerals province. The Queensland government and Adani mutually agreed to extend the target date for conclusion of a Royalty Deferral and Repayment Agreement for Adani's Carmichael mine in the Galilee Basin. Talks are continuing beyond the previously agreed time frame of 30 November. Adani has advised that the commencement of construction of the Carmichael mine is not dependent on the finalisation of the Resources Regional Development Framework negotiation.