Scott Morrison has warned state
governments the Productivity Commission will be considering its attitude
towards fracking in its review of GST distribution. Photograph: Mike Bowers for
the Guardian
The Guardian
By Gareth Hutchens
29 june 2017
Lock the Gate accuses Coalition of
trying to blackmail governments into accepting controversial gas extraction
industry
Scott Morrison has threatened to cut the GST
distribution for state and territory governments if they push back against
unconventional gas exploration, known as “fracking”.
He has warned state governments the Productivity
Commission will be considering its attitude towards the controversial gas
extraction industry – particularly any moratoriums or limits on the practice –
in its review of the goods and services tax distribution, according to reports.
“I think it needs a fair dinkum look,” Morrison told
the Australian. “The Productivity Commission is looking at whether the way the
states and territories operate is giving them a leave pass under the GST
formula for not getting on and doing things. When you have states that get on
and do things, should they be penalised by getting less GST?”
Morrison’s threat has enraged an anti-coal seam gas
group, Lock the Gate.
“This is an outrageous move by the federal government
to blackmail state and territory governments into accepting fracking,
regardless of the devastating impact it will have on farmland and water
resources,” Georgina Woods from Lock the Gate said on Thursday.
“We will be asking for urgent advice as to whether it
is lawful for the government to subvert the proper return of tax dollars to
states in order to pursue a blatantly political agenda to promote multinational
fracking companies.
“This is yet another example of the fracking industry
undermining our democratic institutions – even the fair distribution of GST
dollars is now being hopelessly compromised by the debasement of our democracy
to fossil fuel interests.”
Morrison’s warning to the states comes as the Turnbull
government tries to keep a lid on rapidly rising energy prices, with electricity
bills set to increase by up to 20% on 1 July…..
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