Sustainability sector hits back at Budget

In last night’s announcement of the 2014-15 Federal Budget, Treasurer Joe Hockey attracted ire from several sections of the sustainability sector.

The budget confirmed that the National Water Commission (NWC) - an agency that has provided independent advice and monitoring on water management in Australia for the past 10 years - will be abolished. The commission was placed under review in April and its abolition was predicted by ABC Radio.

Water Services Association of Australia (WSAA) Executive Director Adam Lovell expressed his disappointment, saying, “The NWC’s role in industry reform leadership and national performance reporting has provided a more cohesive national approach to the way Australia manages, measures, plans for, prices and trades water.

“Abolishing the National Water Commission will weaken our ability to engage Australians on water management challenges through future droughts, floods and with population growth,” he continued.

“We call on the federal government to ensure the key functions of the National Water Commission continue to be supported and funded, in particular the aspirations of the NWI (National Water Initiative) and National Performance Report (NPR). The NPR provided transparent public reporting on the performance of urban utilities and rural water providers and the decision to abolish the NWC jeopardises the future of this independent voice.”

Australian Water Association (AWA) Chief Executive Jonathan McKeown meanwhile expressed his concern about the possibility of future cuts to the Murray-Darling Basin Authority, stating, “Abolishing the NWC and flagging future cuts to the Murray-Darling Basin Authority, in a nation where water scarcity needs to be well managed, will reduce Australia’s ability to maximise the productive use of water.”

Cuts were also announced to renewable energy, with the Australian Renewable Energy Agency (ARENA) to be scrapped. Australian Solar Council Chief Executive John Grimes said this was a broken promise, stating, “The government promised to maintain the Australian Renewable Energy Agency, but instead, the Budget has delivered a death warrant for ARENA.”

Clean Energy Council Deputy Chief Executive Kane Thornton added his disappointment. He said that while many companies have been driving innovation in new renewable technologies, “the removal of ARENA will see potential Australian and international investors now look to countries with much stronger support for renewable energy innovation, meaning we may well miss out on billions of dollars of investment and highly skilled jobs”.

Thornton noted that ARENA was originally established with strong bipartisan support. Furthermore, its abolition means the Million Solar Roofs program - an election commitment which was to be funded by ARENA - is unlikely to proceed.

Although no changes were announced to the Renewable Energy Target (RET), Grimes said “every indication is this key policy will also be thrown on the scrapheap”. Thornton added that the target, whose role in “supporting new energy technologies is [now] absolutely crucial”, is currently under review.

“If the Renewable Energy Target is reduced or wiped out, all Australians will lose,” Thornton said.

Environment Victoria Acting CEO Mark Wakeham added his voice in protest of the government’s cuts to environmental funding. He said the Coalition promised to maintain Landcare funding in the lead-up to the election, yet $484 million has now been cut from Landcare and the Caring for Our Country programs.

“The Coalition promising environmental protection and climate action in Opposition, then slashing it in government, is starting to look like a pattern,” Wakeham claimed.

Wakeham added his disapproval of the carbon price removal.

“Instead of polluters paying taxpayers as happens under the carbon price, taxpayers will be handing over billions to polluters for questionable environmental benefit if Direct Action passes through parliament,” he said.

 “Meanwhile, despite claiming all Australians needed to share in the budget pain, polluting industries have again managed to hang on to around $10 billion in annual fossil fuel subsidies including discounted diesel for mining companies, accelerated depreciation for oil, gas and petroleum industries and reduced excise for aviation fuels.

“It’s deeply disappointing that the Treasurer has prioritised continuing the Fuel Tax Credits scheme for mining companies which will see taxpayers pick up the fuel bill for some of the world’s most profitable and polluting corporations. This will cost taxpayers $7 billion in just the next three years.”

Minister for the Environment Greg Hunt defended the Budget, describing the government’s decisions as “difficult but necessary” and laying the foundations for a strong and prosperous economy with less debt.

“At the election, the Coalition made the solemn promise to get the Budget back under control, as well as scrap the carbon tax, end the waste, stop the boats and build the roads of the 21st century. This budget keeps that pledge,” he said