Time to end Australia’s ‘free lunch’ mentality, says resources boss

QRG CEO Wayne Gerard has backed an APPEA report highlighting the benefits of oil and gas and says the sector should speak out against the 'free lunch' mentality in Australia.

In a statement Gerard, who leads a collective of resources companies, said Australia needed to focus on the strong points of its economy.

"We need to focus on the success stories in Australia and not prop up ailing industries," he said.

Highlighting the Government's support of Alcoa's ailing Point Henry aluminium smelter, Gerard said the "old-fashioned" approach to subsidising weaker industries was "well and truly over".

"Instead we need to provide better support to those businesses that drive Australian investment and produce huge revenues," he said.

Gerard also said it was "undeniably true" that the benefit of the oil and gas industry was flowing to other sectors of the economy.

Earlier this year left leaning think tank The Australia Institute said despite earning record profits the mining industry received over $4 billion a year in subsidies and concessions from the Federal Government.

The majority of Federal assistance for the mining industry comes from fuel subsidies, but substantial depreciation and tax write-offs, as well as exploration deductions, also exist.

Yesterday the APPEA released details of an industry funded study that showed the oil and gas industry in Australia was delivering a boost to the wider economy.

In a statement the APPEA said the study found the gas industry had become a "critical driver of national prosperity".

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.