Gillard says no more corporate welfare – good because we’re already spending $7.7bn p.a.

Prime Minister Julia Gillard deserves applause for her tough stance on corporate welfare, which she announced in Brisbane yesterday:

Gillard says she won’t be hurling money at business

The PM is keen to boost our productivity performance, which has been modest in recent years.  A great way to do that, and save big dollars on corporate welfare (which helps inefficient firms cling to life), would be to get Treasury and Finance to draw up a hit list of dubious industry assistance programs, based on the Productivity Commission’s excellent annual Trade and Assistance Review.

In 2008-09 the Australian Government provided industry with assistance of $3.7 billion in budget outlays (e.g., investment subsidies for textile, clothing and footwear manufacturers) and $4 billion in tax concessions (e.g., the R&D tax concession) – i.e., $7.7 billion in total budgetary assistance.  That’s $350 for every Australian, every year, and most Australians probably don’t realise they’re paying it.

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2 Responses to Gillard says no more corporate welfare – good because we’re already spending $7.7bn p.a.

  1. Pingback: Pointless debating floods levy right now | Queensland Economy Watch

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