As it desperately tries to find a way to pay for the massive damage caused by the Queensland floods, the Federal Government is making rash decisions about where draw cash from the economy, according to the Australian Conservation Foundation (ACF).
The organisation is arguing that rather than cutting renewable energy programs and climate action plans, the government should be severing the estimated $5 billion per year tax subsidies to the fossil fuel industry.
After talking up a one percent “mateship tax” levy, Prime Minister Julia Gillard on Thursday announced cuts to the Green Car Innovation Fund, the Cleaner Car Rebate scheme, the Solar Flagships program, the Solar Hot Water Rebate scheme and the Green Start program to help pay for flood reconstruction.
ACF executive director Don Henry said the government must step in and rebuild vital damaged infrastructure, but that it’s only right that fossil fuel tax breaks help pay for the work.
“The largest of these fossil fuel subsidies is the Fuel Tax Credits program, which costs taxpayers more than $5 billion a year, the vast majority of which goes to mining companies as credits for use of diesel fuel,” Mr Henry said.
“Another is the Fringe Benefits Tax concession for personal use of company cars, which is set up so that if you drive a company car, the benefits increase the more you drive it and the more you pollute the atmosphere.”
Cutting financial support for renewable energy programs sent the wrong message to the electorate about the importance of cutting greenhouse gas emissions, Mr Henry said.
“By cutting greenhouse pollution we can reduce the severity of extreme weather events and help protect our people and our economy.”
Although no single weather event could be directly linked to climate change, Mr Henry said, extreme weather like the floods just experienced throughout Queensland and parts of Victoria were consistent with what climate scientists have been warning of for decades.
