In the wake of the Reserve Bank’s latest forecasts, Treasurer Jim Chalmers is to cut back infrastructure investment to relieve inflation pressures and ramp up housing construction – cutting back on fossil fuels is an easy first step to address this problem.
Key Points:
- Over half of $77.4b in total committed resource and energy infrastructure projects is slated for fossil fuels ($41b)
- Government approval of new coal mines or gas expansions takes resources away from the construction of essential infrastructure.
- shows fossil fuel projects make up 53% of the total funding committed to resource and energy infrastructure.
- Some $41 billion worth of new fossil fuel projects are gobbling up the construction supply chain. that makes it harder to build public transport and housing.
- In the NT alone, the Commonwealth Government is spending $100 million on roads explicitly for the onshore gas industry.
“Every time the government approves new coal mines or gas expansions, it’s allowing projects to suck labour and equipment away from essential infrastructure like houses, roads, and railways,” said Greg Jericho, Chief Economist at the Australia Institute.
“Official government data shows that fossil fuel projects make up over half of all committed resource and energy infrastructure across Australia.
“This equates to $41 billion worth of new fossil fuel projects gobbling up the construction supply chain.
“If the government really wants to unclog the infrastructure pipeline and free up capacity to build housing, it could start by winding back the fossil fuel projects that have bunged it up in the first place.”
