Throwing our money down black hole with Adani
QUEENSLAND spends more on mining and fossil fuel subsidies than any other state, and is in the bottom three states for spending on schools and hospitals. Queensland paid $ 9.5 billion to fossil fuel industries between 2009- 15.
A few weeks ago Premier Annastacia Palaszczuk agreed to a coal royalties holiday for Adani, a coal mine which is destined to be the biggest and filthiest in Australia.
This royalties subsidy is equivalent to about $ 350 million a year for five years, totalling $ 1.75 billion – money we may not get back since the Adani head offices are in the Cayman Islands.
The entire Adani project is unviable without subsidies, and the future of the project is shaky even with our money invested in it. Almost two dozen banks and financial institutions have ruled out funding Adani.
Adani Power in India is in dire trouble, with a net loss of about $ 1 billion in the last financial year.
It is up for a “distressed” sale, and Adani Power management have stated the coal fired plant is unfinancial. Adani is trying to flog it off to the Gujarat government. One would wonder why Gujarat would want to subsidise a stranded asset, particularly as they are rapidly moving to renewable energy.
Here in Australia we also wonder why our governments would want to subsidise an equally unviable mine. So much for the “pit to plug” strategy touted by our politicians.
Adani also wants $ 1 billion subsidy from the Federal Government to build a rail line from the Carmichael mine to Abbot Point port to transport the coal. Is there no end to what Adani wants?
It seems that the Adani project is unable to proceed without other people’s money – ours.
The Adani project truly is a house of cards. It seems that the last thing we should be doing is throwing our money at it.
If it’s a choice of how to invest our money, let’s choose schools, health and renewables. They have a future. CHRISTINE CARLISLE, Environment Council of