The preferential treatment of the mining industry penalises other industries through higher capital costs, and reduces their capacity to optimise their output. Mineral exports are subsidised at the expense of domestic industries such as tourism. Mining does not contribute fairly to the task of providing public services. Exhaustible mineral resources are exploited with reduced options for future generations. And non-diesel technologies are disadvantaged.
Mining is capital intensive, energy intensive and jobs poor.
By contrast renewable energy, energy efficiency and services are inherently labour intensive. The Greens oppose the preferential treatment accorded to the mining industry through the diesel fuel rebate and will re-direct the money to boost renewable energy, energy efficiency and public transport. Impediments to growth of the renewable energy industry are the high up-front cost of installing renewables and the small existing domestic market which is not growing quickly enough to provide the volume cost reductions necessary for mass penetration and utilisation. The Sun Fund addresses both these problems and provides a domestic stepping stone market through which Australian industry can access order of magnitude larger markets in Indonesia, the Philippines, China and Southern Africa, which are beyond the reach of any electricity grid for the foreseeable future. With respect to Australian renewable product manufacturers, installers and service providers, the impact will be immense.