Axe miner fuel rebate from budget-Greens

Updated: 11:22, Friday April 27, 2012

The Australian Greens are maintaining pressure on the federal government to scrap the diesel fuel rebate for miners in the upcoming budget.

The fuel rebate is currently worth 38 cents per litre but will be reduced by six cents after the carbon tax starts on July 1.

About 40 per cent, or $2 billion, of the $5 billion spent each year on subsidising diesel fuel goes to mining companies.

‘Certainly we’ve made it very clear to the government that we would like to see this diesel fuel rebate of $2 billion put back into the community for some of the things that the community wants,’ Greens leader Christine Milne told ABC Radio on Friday.

Polling commissioned by the Australian Conservation Foundation suggests 77 per cent of Australians think the diesel fuel rebate for miners should be scrapped.

‘If the government is looking for savings in the budget the first things that should go are senseless tax breaks that promote pollution,’ foundation chief executive Don Henry said in a statement.

Of the 1008 people surveyed online some 91 per cent thought the $2 billion would be better spent on health and education.