Repeat after me: Australia is a low-taxing country, a low-taxing country.....

“Australia is a low-taxing country. While tax debate in Australia tends to focus on tax rates, with endless comparisons of different countries’ rates of different taxes, these debates ignore the fact that Australia raises far less tax revenue than most developed countries.

This is not a problem in itself. There is no right or wrong level of taxation. However, the level of tax revenue raised inevitably affects governments’ ability to fund essential services such as health, education, social security, defence and infrastructure. Polling consistently shows that the Australian public would prefer higher levels of spending on public services than lower tax collection.” [The Australia Institute, 17 April 2018]

In two weeks time a federal government ideologically glued to cutting company tax and spending big on infrastructure on the back of ever-decreasing taxation revenue will deliver its 2018-19 Budget Papers.

So Prime Minister Turnbull and Treasurer Morrison will ignore polls like this one, because the only voters with influence are found in the ranks of political donors, big business and industry.

The Australia Institute, 18 April 2018:

Small government has small support - National poll

A large national poll of 1,557 Australians, released today by think tank The Australia Institute, has shown 64% of people want more public spending funded by tax revenue. Just 11% want lower taxes and less public spending.

* Two-thirds (64%) said they would prefer more public spending, funded by more tax

   revenue, and less inequality.

* Only 11% said they wanted lower public spending, lower tax and more inequality.

* A majority of voters for all parties selected the more spending and more tax option:

* 56% of both PHON voters and Other voters;

* 60% of LNP voters;

* 71% of ALP voters;

            * 75% of Green voters.

Polling Brief - April 2018 - more or less spending tax inequality.pdf

P521 Australia a low tax country.pdf

Federal Liberals behaving badly in 2018

This was the Liberal MP for Leichardt and Chair of Joint Standing Committee on Northern Australia Warren George Entsch on 7 March 2018 at warrenentsch.com.au.....

Federal Leichhardt MP Warren Entsch is calling for big ideas from the community that could help shape the future of the region.

Mr Entsch said the $272 million Regional Growth Fund would support major projects in regional, rural and remote areas that delivered long-term economic benefits.

“This is an exciting program that is set to deliver major projects over $20 million that take advantage of the region’s natural economic strengths,” Mr Entsch said.

“The Regional Growth Fund will support additional investment for sustainable economic growth, including from the private sector, other levels of government, and not-for-profit organisations.

“Initial applications close on 27 April 2018 and I encourage everyone eligible in our community to look at the program guidelines and get started on an application.”

Mr Entsch said the Federal Government would invest a minimum of $10 million toward each successful infrastructure project, representing a maximum of 50 per cent of project costs.

This was The Cairns Post on the subject of a particular pork barrel and Mr. Entsch…..

22 March 2018

It was a long and tough election campaign for Prime Minister Malcolm Turnbull. He finally buckled late in the 2016 race and matched Labor’s pledge to fund the final $100 million to build Townsville’s stadium.

It was a welcome boost to Coalition MPs but Leichhardt MP Warren Entsch needed a lift too.

Mr Turnbull threw him a bone in the form of a $20 million regional jobs and investment package.

It wasn’t a $100 million pledge but it struck at the heart of something the region desperately needed: jobs.

The announcement received a lot of media and Mr Entsch was delivered another term in Canberra.

But 100 days after the Coalition was sworn in there was little action and even less in the way of detail on how businesses could access the funding. Time dragged on until Advance Cairns chairman and campaign director for Mr Entsch, Trent Twomey was named chairman of the Local Planning Committee for the fund in January 2017.

Among the committee’s brief was to set the eligibility criteria. The application process was finally rolled out, closing in July 2017. Throughout the process the Cairns Post has watched, waited and asked questions to ensure the fund was not just a hollow election promise. After 20 months Mr Entsch announced in February a list of recipients; among them was a $2.4m grant for QRX Group 1 to establish a first for FNQ — a pharmaceutical manufacturing and distribution centre. The project, never heard of until the announcement, has raised many eyebrows. There are questions that need answering about the true number of jobs it will generate, a key criterion of the funding, and if there is a real conflict of interest with Mr Twomey’s wife a one-third owner of QRX Group 1.

22 March 2018

Leichardt MP Warren Entsch could face a quizzing over how the wife of his campaign director Trent Twomey won a $2.4 million federal grant to expand her family pharmaceutical empire.

The Australian Federal Police is looking into a formal complaint of alleged fraud and misconduct in the handling of the multi-million dollar handout.

Far North civic and business leaders told the Cairns Post many taxpayers held concerns about LNP pork-barrelling and whether it “passes the sniff test”.

Mr Entsch, whose son works for the pharmacy company behind the deal, said it was a “brilliant project” and he was outraged by suggestions “about fraud and corruption” over the $220m Regional Jobs and Investment Package (RJIP).

“It ticked all the boxes,’’ he said.

Mr Entsch appointed his election campaign manager Trent Twomey, a local pharmacist and Advance Cairns chairman, to head an RJIP committee panel to identify key priorities for $20m in federal grants to stimulate jobs growth and investment.

The shelf company QRX Group 1 – where Mr Twomey’s wife Georgina and business partner Leo Maltam are listed in company records as directors – won $2,415,400 in funds to build a $5m pharmacy distribution facility……

The Australian Federal Police has been referred a formal complaint but are yet to launch an official “active” fraud investigation. An AFP spokesman suggested the matter might be referred to the Department of Regional Development’s internal probity and audit unit.

Business leaders and pharmacy owners said the vision to build Northern Australia’s first pharmaceutical manufacturing and distribution centre was unheard of until the grant was announced two weeks ago.…….

New public register published as part of a federal crackdown on non-complying day care centres

This month the Turnbull Government published a new public register as part of its crackdown on fraud in the day care sector.

Australian Department of Education, Child Care Enforcement Action Register. 6 January 2018:

The Child Care Enforcement Action Register is a list of services that have been the subject of a sanction and/or immediate suspension under the A New Tax System (Family Assistance) (Administration) Act 1999 (the Administration Act).

In accordance with section 201B of the Administration Act, the Department of Education and Training (the department) publishes a list of services that have been sanctioned under section 200 and/or suspended under section 201A of that Act. Information published on this page only relates to those enforcement actions permitted to be published under the Family Assistance Law (FAL).

The department has established the Child Care Enforcement Action Register because it considers that information on sanctions should be available to the public. Information about the responsibilities and obligations of approved child care services and the FAL can be found on the department’s website.

The information relates to enforcement action taken by the department between 1 July 2016 and 30 September 2017.

2017-2018 (First Quarter) - last updated in January 2018:

VICTORIA (VIC)

NEW SOUTH WALES (NSW)

QUEENSLAND (QLD)

SOUTH AUSTRALIA (SA)

WESTERN AUSTRALIA (WA)

AUSTRALIAN CAPITAL TERRITORY (ACT)

2016-2017 - last updated in December 2017:

VICTORIA (VIC)

NEW SOUTH WALES (NSW)

QUEENSLAND (QLD)

SOUTH AUSTRALIA (SA)

WESTERN AUSTRALIA (WA)

AUSTRALIAN CAPITAL TERRITORY (ACT)

NORTHERN TERRITORY (NT)

Only one NSW North Coast service has been placed on this federal government name and shame file – Elite Edge Sports & Learning Centre at Terranora. With a suspension on the basis of “Non-compliance with State or Commonwealth Law” as of 2 June 2017.

The majority of named NSW child care centres and other services being in metropolitan areas.

If you're not feeling well but think things can't get any worse - you forgot to factor in the Australian Minister for Health's cost cutting ways

The Age, 4 August 2017:

State and territory health ministers say hospital treatments and services will suffer under a Commonwealth proposal to withhold budgeted funds and reduce spending.

Federal Health Minister Greg Hunt has drafted a directive to the Independent Hospital Pricing Authority to review its public hospital funding method.

It would result in retrospective funds not being paid and reduced services in future, Queensland Health Minister Cameron Dick said in a joint statement issued after the COAG Health Council meeting in Brisbane on Friday.

Mr Hunt drew condemnation from Queensland, Victoria, Western Australia, South Australia, the Northern Territory and the ACT when he confirmed he would uphold the direction.

"States and Territories have already funded services and boosted frontline staffing taking into consideration Commonwealth funding," the statement said.

Independent Hospital Pricing Authority (IHPA), media release, 17 July 2017:

IHPA releases Consultation Paper on Pricing Framework for Australian Public Hospital Services 2018-19

The Independent Hospital Pricing Authority (IHPA) today released its Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2018-19. The consultation is open to the public until Thursday 17 August 2017.

The Pricing Framework for Australian Public Hospital Services 2018-19 outlines the major policy decisions which will underpin the National Efficient Price and National Efficient Cost Determinations for 2018-19.

This year IHPA will seek feedback regarding work that has been progressed on pricing and funding for safety and quality as well as canvassing options to enable new and innovative approaches to value based or preventative health care models.

The Chair of the Pricing Authority, Shane Solomon said, “IHPA has continued to work closely with the jurisdictions, clinicians and other stakeholders to make significant progress on the implementation of national reforms to incorporate safety and quality into the pricing and funding of public hospitals in Australia.

“A range of factors must now be considered including risk adjustment and how the approach can be embedded as part of broader system change.

“The success of a safety and quality pricing and funding mechanism is dependent on national, state, and local health systems working together to support the implementation of a model and ensure that it is working to improve safety and quality across all services,” he said.

“The Consultation Paper is an important opportunity for stakeholders to engage with IHPA on the approach to pricing and funding for safety and quality as well as the emergence of new innovative pricing models to help improve public hospital services across Australia. We strongly encourage all interested parties to provide feedback as part of this process,” concluded Mr Solomon.

The Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2018-19 is available on the IHPA website.

Submissions should be emailed as an accessible Word document to submissions.ihpa@ihpa.gov.au or mailed to PO Box 483, Darlinghurst NSW 1300 by 5pm on Thursday 17 August 2017.

– ENDS –

Independent Hospital Pricing Authority (IHPA), Ministerial Direction, 16 February 2017:

Ministerial Direction

On 16 February 2017 IHPA received a Ministerial Direction from the Hon. Greg Hunt under section 226(1) of the National Health Reform Act 2011.

The Direction requires that IHPA undertake implementation of agreed recommendations of the COAG Health Council on pricing for safety and quality to give effect to:

1. nil funding for a public hospital episode including a sentinel event which occurs on or after 1 July 2017, applying to all relevant episodes of care (being admitted and other episodes) in hospitals where the services are funded on an activity basis and hospitals where services are block funded; and
2. an appropriate reduced funding level for all hospital acquired complications, in accordance with Option 3 of the draft Pricing Framework for Australian Public Hospital Services 2017-18, as existing on 30 November 2016, to reflect the additional cost of a hospital admission with a hospital acquired complication, to be applied across all public hospitals; and
3. undertake further public consultation to inform a future pricing and funding approach in relation to avoidable hospital readmissions, based on a set of definitions to be developed by the Australian Commission on Safety and Quality in Health Care.

IHPA will incorporate the requirements under this Direction into the final Pricing Framework for Australian Public Hospitals 2017-18 due to be published on the IHPA website in early March 2017.

IHPA will undertake further consultation as part of its annual consultation process on the draft Pricing Framework for Australian Public Hospitals 2018-19 due for publication in June 2017 and provide a report back to the COAG Health Council by 30 November 2017.

Note: This follows on from a Direction received on 29 August 2016 which required IHPA to provide advice to the COAG Health Council on options for pricing for safety and quality.

More information

For any questions, please contact enquiries.ihpa@ihpa.gov.au

Links

• View the full Ministerial Direction online
• View previous Direction from 29 August 2016

The Fools on the Hill still vainly searching for viable large scale 'clean coal' technology

The Sydney Morning Herald reported on 30 May 2017:

Environment and Energy Minister Josh Frydenberg said the Clean Energy Finance Corporation [CEFC] would have its mandate expanded so it could back fossil fuel power plants that include the technology, sometimes described as "clean coal".

The technology, which involves capturing the emissions at the source and burying them underground, was explicitly banned when the CEFC was set up under a Labor-Greens agreement in 2011.

Unfortunately for the foolish, ideology-driven Liberal MP for Kooyong & Minister for Environment and Energy and his equally foolish Prime Minister The Australia Institute released this statement on the same day:

“The Australian Government has put $1.3 billion of taxpayers’ money towards Carbon Capture and Storage (CCS) initiatives since 2003, with zero large scale operational projects to show for it. A new report from The Australia Institute’s, Money for nothing, has found that despite years of generous taxpayer funding, there are no large-scale CCS projects operating in Australia and no planned coal CCS projects at any stage of development. Several proposed coal plants with CCS received federal grants, but all have since been cancelled or liquidated.” 

Opening paragraphs of The Australia Institute’s discussion paper Money for nothing by Bill Browne and Tom Swann, May 2017:

In 2007, then-Environment Minister Malcolm Turnbull announced a $100 million grant for a proposed coal plant at Loy Yang “suitable for” CCS. Turnbull said “Projects like this one … will play an integral role in helping to reduce emissions in Australia”.  Five years later, the grant was withdrawn. The operator has been liquidated.

In February 2017, Prime Minister Malcolm Turnbull put CCS back on the agenda. He argued as the world’s largest coal exporter, Australia has a “vested interest” in promoting clean coal, and lamented that despite substantial public investment over the years “we do not have one modern high-efficiency low-emissions coal-fired power station, let alone one with carbon capture and storage”.

 In 2009, the head of the Australian Coal Association promised that that we will “have commercial scale demonstration plants with carbon capture and storage in operation in Australia by 2015”.  In 2017 the chief national coal lobbyist said it is “pretty early days” with regards to CCS, which is “an evolving technology”.

 Despite the poor track record of coal with CCS, the Turnbull government is now proposing to fund it through the Clean Energy Finance Corporation, which has previously focused on commercial or near-commercial projects, mostly renewables.

In light of Turnbull’s proposal, this report outlines previous funding to CCS and how little Australia has to show for it.

Since 2003, successive Australian governments have backed their promises that CCS will preserve the coal industry with promises of public money. Over $3.5 billion has been committed towards a wide range of CCS-related projects, initiatives and programs. Over $1.3 billion was identified as actually distributed.

The government found it difficult to find projects to fund, and funded projects often failed. While funding was sometimes ‘clawed back’, other times this was not possible. ZeroGen, a proposed coal plant with CCS, went into administration despite at least $187 million in subsidies. The 99% Australia-funded Global CCS Institute backed more overseas projects than Australian ones and had extravagant operational spending.

The coal industry also announced a $1 billion CCS industry fund, which they said would match federal government spending. The fund has collected and committed only $300 million (mostly for CCS projects), and some of this fund has been spent on election campaign promotion of “clean coal”. Contributions to the fund were deducted against royalties in some states, meaning the fund was subsidised by the taxpayer.

How soon will Adani go broke in the Galilee Basin?

Reading the information set out below leads me to wonder how the Federal Government and Queensland Government will cope, both politically and economically, if the Adani Group's Carmichael Mine and Rail Project leads to a massive derelict mine site with its twenty-six Australian subsidiaries under administration or in receivership.

INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS (IEEFA)*:

2013

Remote Prospects: A financial analysis of Adani's coal gamble in Australia's Galilee Basin

The Adani Group is highly geared:

 Against an external market capitalisation of US$5.17bn, The Adani Group has an estimated US$12bn of net debt, a significant portion of which is US$-denominated with limited hedging.

Adani Power is of particular concern, being loss-making with net debt over 300% of its current market capitalisation.

2015

19 May The Latest Prospects for Adani's Coal Project? More Remote Than Ever

The project would require a massive and improbable infusion of debt, but a growing number of global banks key to most major coal-mining investments have eschewed it, mostly because of the risk it would pose to the Great Barrier Reef. (The 11 banks that have taken a public pass on the project include Deutsche Bank; HSBC; Royal Bank of Scotland; Barclays; Morgan Stanley; Citigroup; Goldman Sachs; JP Morgan Chase and most recently Societe Generale, BNP Paribas and Credit Agricole. In May 2015 Bank of America announced it would move to exit coal lending entirely.

15 September The Latest Prospects for Adani's Coal Project? More Remote Than Ever

With the Carmichael coal proposal commercially unviable at current or forecast thermal coal prices, the project is increasingly unbankable. Fifteen of the world's largest financial houses have either ceased working on this proposal or ruled out involvement, including both CBA and Standard Chartered, where advisory mandates have expired.

Continued momentum in technological developments underpins the scaled up commercial rollout of renewable energy and energy efficiency globally. As such, the strategic 'moment' for large-scale export-focused greenfields coal mines has passed.

2017

25 April Adani: Remote Prospects - Carmichael Status Update

Shareholders and financiers of Adani Enterprises face substantial risks due to the company's continuing development of the controversy-plagued Carmichael coal project in the face of major adverse structural shifts in market conditions.

The proposed mine, in Australia's remote Galilee Basin, remains a high-cost, high-risk project that is reliant on substantial public subsidies for it to be remotely financially viable. Even with concessional loans, IEEFA analysis shows the project is likely to be cash flow negative for the majority of its operating life.

Shifts in Indian energy policy and pricing have materially increased the risk of Carmichael becoming a stranded asset. Legal challenges and community opposition to the project persist and are likely to escalate if the project moves to construction.

With a market capitalisation of just US$1.9bn and net debt of US$2.5bn, Adani Enterprises Ltd will struggle to contribute equity for this A$5bn project. The project risks over-extending the balance sheet of Adani Enterprises to an extreme degree, creating a high level of financial risk to both shareholders and potential financiers……

In the years since Adani purchased the lease for the Carmichael mine, Indian government energy policy has shifted radically. Energy Minister Piyush Goyal has stated repeatedly that it is government policy to cease thermal coal imports—a policy that brings into question the very point of the proposed mine…..

* The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute's mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

The Institute for Energy Economics and Financial Analysis receives its funding from philanthropic organizations.  We gratefully acknowledge our funders, including the Rockefeller Family Fund,  Energy Foundation, Mertz-Gilmore Foundation, Moxie Foundation, William and Flora Hewlett Foundation, Rockefeller Brothers Fund, Growald Family Fund, Flora Family Fund, Wallace Global Fund,  and V. Kann Rasmussen Foundation.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The Hindu, 5 May 2016:

"PSU banks are owed about Rs 5 lakh crore by corporate houses and of this roughly Rs 1.4 lakh crore are owed by just five companies, which include Lanco, GVK, Suzlon Energy, Hindustan Construction Company and a certain company called the Adani Group and Adani Power," he said.

The amount owed by this group "called the Adani Group" both in terms of its long term and short term debt on Thursday is around Rs 72,000 crore, he added quoting reports.

"Yesterday it was mentioned that the entire amount that the farmers need to pay as crop loans is Rs 72,000 crore. The Adani Group itself owes to the banks Rs 72,000 crore," he said.

The Hindu, 8 May 2016:

The billionaire Gautam Adani's Adani group, with Rs 96,031 crore debt [est. AUD $1.9 billion], is under pressure to sell its stake in the Abbott Point coal mines, port and rail project. The Adani Group's debt stands at Rs. 72,000 crore [est. AUD $1.4 billion]. Last year, Standard Chartered bank had recalled loans amounting to $2.5 billion as part of its global policy of reducing exposure in emerging markets. Global lenders have backed out from funding the $10-billion coal mine development project. State Bank of India has also declined to offer a loan despite signing an MoU to fund the group with $1 billion. An Adani spokesperson declined to offer any comments on the issue.

India Infoline News Service, 19 May 2016:

S&P Global Ratings revised its outlook on Adani Ports and Special Economic Zone Ltd. (APSEZ) to negative from stable. 

ABC News, 22 December 2016:

The business behind the planned Carmichael coal mine in North Queensland is facing multiple financial crime and corruption probes, with Indian authorities investigating Adani companies for siphoning money offshore and artificially inflating power prices

Companies under scrutiny for the alleged corrupt conduct include Adani Enterprises Limited — the ultimate parent company of the massive mine planned for the Galilee Basin.

Two separate investigations into allegations of trade-based money laundering by Adani companies are underway — one into the fraudulent invoicing of coal imports and the other into a scam involving false invoicing for capital equipment imports.

"They are very serious allegations and they are being conducted by the premier Indian government agency investigating financial crime," Australia's foremost expert on money laundering, Professor David Chaikin of the University of Sydney, told the ABC.

"The allegations involve substantial sums of money with major losses to the Indian taxpayer."

Adani denies wrongdoing.

Rediff, 10 January 2017:

For the past year, Adani Power has been undergoing an overhaul for its debt, including measures such as equity infusion and refinancing. These have helped the company survive the rough times since proceeds from the compensatory rates are yet to come by. 

The firm expects its recent equity infusion, debt refinancing and the compensatory rate to lead to a turnaround in its financial position….

On December 6, the Central Electricity Regulatory Commission granted a compensatory rate for Adani Power's Mundra unit on the grounds of changes in Indonesian coal policy and shortage of domestic coal. 

In the address to analysts, after the September quarter results, the management said: "Once we have clarity in the form of CERC orders, we would obviously have the reason to work with the rating agencies and then we will make our plans."

The CERC order, however, has not led to any change of credit ratings so far for the company as its implementation hinges on the required Supreme Court approval for the same. 

CatchNews, 14 February 2017:

Earlier this year, the State Bank of India reportedly approved a loan of around $1 billion (Rs 6,600 crore ) for the company's coal mine in Australia. However, after much hue and cry in the media due to the highly stressed balance sheet of the public sector bank, the approval was withdrawn.

Hindustan Times, 11 April 2017:

The Supreme Court on Tuesday set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to Tata Power Ltd and Adani Power Ltd, sending down shares of both companies.

Shares of Tata Power reversed early gains to fall as much as 6.78%, while Adani Power slumped up to 20% to its lowest since February 21.

The tribunal, in April last year, had said the two companies needed to be compensated as the change in Indonesian laws on coal export prices were outside the control of these companies.

Financial Review, 11 April 2017:

Indian billionaire Gautam Adani has told Malcolm Turnbull his company will seek a taxpayer-funded concessional loan of up to $1 billion to support his proposed $21.7 billion coal mine in Queensland......

Following a meeting with Mr Adani and his executives in New Delhi on Monday night, Mr Turnbull cautioned the loan – to help build a $2 billion railway line to link the mine to the coast – would have to be approved on its commercial merits by the independent board which administers the $5 billion Northern Australia Infrastructure Fund.

The Northern Star, 16 April 2017:

Shares for Adani Power Limited, the Adani Group subsidiary energy provider in India, were trading at 44.25 rupees (AU$0.9) on Monday, but dropped to 32.90 rupees by the end of trading on Friday.

Adani Enterprises, the subsidiary connected with the Carmichael Coal project, traded on Monday for 120.10 rupees ($AU2.46) a share, but has also dropped, reaching 116.85 by the end of Friday.

Westpac Bank, Climate Change Position Statement and 2020 Action Plan, April 2017:

….the International Energy Association’s (IEA) modelling indicates that under a two degree scenario thermal coal demand will peak in the current decade and decline thereafter…..

However, for new thermal coal proposals we will: Limit lending to any new thermal coal mines or projects (including those of existing customers) to only existing coal producing basins and where the calorific value for that mine ranks in at least the top 15% globally. We define the top 15% as having a specific energy content of at least 6,300 kCal/kg Gross As Received. This value is referred to as the Newcastle high energy coal benchmark.

Left unchecked the gas & coal mining sectors will be the death of the Great Artesian Basin and what is left of the Great Barrier Reef

According to an August 2016 Report Commissioned By The Australian Government And Great Artesian Basin Jurisdictions Based On Advice From The Great Artesian Basin Coordinating Committee the Great Artesian Basin (GAB) is one of the largest underground freshwater reservoirs in the world. It underlies approximately 22% of Australia – occupying an area of over 1.7 million square kilometres beneath arid and semi-arid parts of Queensland, New South Wales, South Australia and the Northern Territory. Approximately 70% of the GAB lies within Queensland…..

The first people to make use of GAB water were Indigenous tribes for whom it was critical to survival. Indeed, there is evidence that the GAB sustained Aboriginal people for thousands of years prior to European settlement.

The natural springs of the GAB provided a critical source of fresh water, and supported valuable food sources including birds, mammals, reptiles, crustaceans and insects, creating an abundant hunting ground for local tribes. The plants and trees around the artesian springs were used for food, medicine, materials and shelter.

The springs provided semi-permanent oases in the desert and supported trade and travel routes which evolved around them. The springs also played a key part in the spiritual and cultural beliefs of Aboriginal people. Ceremonies and other events were held at spring wetland areas which remain precious cultural and sacred sites. Numerous Creation stories feature a connection to groundwater.

This underground freshwater reservoir holds 65,000 million megalitres much of which fell as rain 1 to 2 million years ago, but not all of this water is in accessible layers.

For assessment purposes the GAB is divided into four regions – Carpentaria, Central Eromanga, Western Eromanga and the Surat Basin.

In 1878 the first bore was sunk to draw water from the Great Artesian Basin.

In modern Australia its economic values are shared by towns, agriculture, cattle & sheep grazing and industry/mining across the four basin regions.

The Courier map based on a 22 August 2016 report

Economic output of groundwater dependent sectors in the Great Artesian Basin 

                                                                                                                                              

The report points out that Water has historically been extracted from the GAB at a greater rate than recharge and this creates a problem for 21st Century Australia.

Professor of Environmental Sciences Derek Eamus, University of Technology, 18 June 2015:

As the pressure in the GAB has declined and the water table drops, mound springs (where groundwater is pushed to the ground surface under pressure) have begun to dry up in South Australia and Queensland. Associated paperbark swamps and wetlands are also being lost and it gets more and more expensive to extract the groundwater for irrigation and other commercial applications.

On average, rates of groundwater extraction across Australia has increased by about 100 per cent between the early 1980s and the early 2000s, reflecting both the increased population size and commercial usage of groundwater stores.

Despite the strain on water resources, the gas and coal mining industries are allowed virtually unlimited water extraction from within the Great Artesian Basin and where the few limits are placed on extraction it is poorly policed by government agencies.

This is a graph of coal seam gas, conventional gas and petroleum industry water use 1995-2015:

Source:.DNRM 2016, p. 62.

The Adani Group’s most recent water licence for the Carmichael coal project issued in April 2017 allows it to take a virtually unlimited volume of groundwater each year for the next 60 years, plus surface water – with minimum oversight.

The Environmental Defender’s Office (Qld) states that: It is expected that Adani may require up to 9.5 billion litres of groundwater every year for the Carmichael project.

Poor management by Adani of its Abbot’s Point coal waste has already led to a smothering of the vibrant, nationally important Caley Wetlands with run-off via its estuarine system expected to reach adjacent waters of the Great Barrier Reef World Heritage Area.

Satellite image of Caley Wetlands after emergency water release by Adani - now covered in coal waste.

A picture of the Abbot Point coal loading facility showing coal water run-off moving north-west into the wetlands and coal dust on the beaches. The Age, 12 April 2017, Photo: Dean Sewell

Coal dust on the beaches next to the Abbot Point coal loading facility  Photo: Dean Sewell/Oculi

Great Barrier Reef Blog

On 10 March 2015 ABC News reported:

Hundreds of square kilometres of prime agricultural land in southeast Queensland are at risk from a cocktail of toxic chemicals and explosive gases, according to a secret State Government report.

A study commissioned by Queensland's environment department says an experimental plant operated by mining company Linc Energy at Chinchilla, west of Brisbane, is to blame and has already caused "irreversible" damage to strategic cropping land.

The department, which has launched a $6.5 million criminal prosecution of the company, alleges Linc is responsible for "gross interference" to the health and wellbeing of former workers at the plant as well as "serious environmental harm".

The 335-page experts' report, obtained by the ABC, has been disclosed to Linc but not to landholders.

It says gases released by Linc's activities at its underground coal gasification plant at Hopeland have caused the permanent acidification of the soil near the site.

Experts also found concentrations of hydrogen in the soil at explosive levels and abnormal amounts of methane, which they say is being artificially generated underground, over a wide area.

The region is a fertile part of the Western Darling Downs and is used to grow wheat, barley and cotton and for cattle grazing, with some organic producers.

Other documents, released to the ABC by the magistrate in charge of the criminal case, show four departmental investigators were hospitalised with suspected gas poisoning during soil testing at the site in March.

"My nausea lasted for several hours. I was also informed by the treating doctor that my blood tests showed elevated carbon monoxide levels (above what was normal)," one of the investigators said.

High levels of cancer-causing benzene were detected at the site afterwards.

On 9 February 2017 ABC News was still reporting on the contamination:

Flammable levels of hydrogen have been found at a number of locations near the site of a controversial gas project that has been blamed for contaminating huge swathes of prime Queensland farm land.

The ABC understands an ongoing Environment Department investigation has confirmed that the contamination is much more widespread than previously thought.

The Queensland Government has dispatched Environment Department officers to the Hopeland community, near Chinchilla in the state's south, and is setting up a call centre to help explain the situation to landholders…..

Due to fears about possible hydrogen explosions, the Government has been enforcing a 314-square kilometre "excavation caution zone" around the Linc plant, with landholders banned from digging any hole deeper than two metres.

The ABC understands further investigation by the Environment Department has now found flammable levels of hydrogen at locations outside the current caution zone.

The hydrogen has been detected underground and the department says it dissipates quickly in the open air.

Government sources have stressed the gas is not of an explosive concentration but landholders will be encouraged to exercise caution.

Left unchecked the mining industry will bring the Great Artesian Basin closer to collapse.

It is not as if either federal or state governments ever fully realise the supposed financial gains allowing this environmental degradation was supposed to bring to their treasuries.

In 2007-08 the Australian Taxation Office released taxation data which showed that 68.8 per cent of all mining companies on its books paid no tax in that financial year. In 2009-10 the percentage of mining companies paying no tax had risen to 73.1 per cent and in in 2010-11 the percentage of mining companies paying no tax was 72.2 per cent. By 2013-14 a total of 60 per cent of publicly listed energy and resources companies did not pay tax and again in 2014-15 60 per cent of all energy and resources companies paid no tax.

Add to this the fact that Adani in Australia in estimated to have paid only 0.008 percent in tax on their total income in 2014-2015 and is structured in such a way that its tax burden is artificially lowered and a significant proportion of its profits move offshore to the Cayman Islands tax haven.

It isn’t hard to see a pattern developing here.

Maximum environmental, cultural, social and economic risk for Australia with minimal financial return on risk.