SYDNEY, May 8, 2018 – The Federal government’s 2019 budget pretends climate change isn’t happening by continuing to pour billions into fossil fuel subsidies, failing to allocate a single cent to renewable energy and taking a razor to the environment department.Treasurer Scott Morrison handed down his third budget at Parliament House this evening and was unable to find any money for climate mitigation and adaptation but did find a potential way to expand fossil fuel subsidies through the Regional Growth Fund and the Major Project Business Case Fund.

“The budget is a statement of values and the government has again shown that the super profits of the fossil fuel industry are more important to them than the environment and people,” Greenpeace Australia Pacific Campaigner Jonathan Moylan said.

“The Turnbull government is hell bent on handing billions to big business despite widespread community opposition, as well as in the parliament. $30 billion for diesel fuel tax credits across the forward estimates puts it at almost nine times the total environment budget. That money would be better spent investing in the jobs of the future as Australia makes the transition from dirty fossil fuels to clean and reliable renewable energy.”   

“Spending billions of dollars on subsidies like the diesel fuel rebate for fossil fuel companies is a reckless response to the monumental shift to renewables in the energy market.”

The budget also confirmed that the Renewable Energy Target will be phased out by 2020 as well as all subsidies for renewable energy.

Mr Morrison also continued down the path Joe Hockey first took in 2014 when he slashed funding to the Department of Environment and Energy. The department that has suffered years of cuts has seen its budget reduced again this time by $169 million to $1.57 billion. The environment budget to the end of the forward estimates in 2021-22 will be 43 percent lower than when the Coalition took office in 2013, according to the Australian Conservation Foundation.

The Treasurer also cut the budget of the Climate Change Authority; a statutory body which provides independent, expert advice on climate change policy. The body, which had a budget of more than $6 million when it was founded in 2011 has seen its funding slashed by $550,000 slashed to $2.9 million.

While this was expected the budget did offer a number of surprises such as the government’s begrudging admission that the age of coal is rapidly coming to an end.

The budget revealed that investment in the mining sector plunged by almost a quarter last year and that may not turn around any time soon with Treasury forecasting flat metallurgical and thermal coal prices and volumes for the first time .

“Despite a few boosters on the fringe, the Government has finally realised what most economists have known for many years: coal is on the way out. Nevertheless they haven’t recognised the pace of change.”

“As Australia continues to marginalise itself in our region and the global community we can only hope this will be the final budget that does not embrace the opportunities of rapid energy transition.”

 

For interviews:

Martin Zavan, Greenpeace Australia Pacific Communications Campaigner

0424 295 422 / [email protected]