Redirecting Adani’s NAIF loan into other industries
Stopping the NAIF loan to Adani and redirecting it to other industries makes good sense economically, environmentally and politically.
The Northern Australia Infrastructure Facility (NAIF) is a federal agency that provides concessional finance. Adani has applied for close to $1 billion in concessional finance from NAIF for its coal mine and rail project in Queensland.
While NAIF is a federal agency, the Queensland government is “substantially involved” in deciding what kinds of projects NAIF will fund in Queensland.1 It has its own internal assessment and approval process, during which it can either veto a proposal or sign off on project funding.
There are sound economic, environmental and political reasons to veto Adani’s loan.
- Stopping the NAIF loan to Adani means more money for projects in other industries, like tourism, agriculture, manufacturing and renewable energy.
- Poll after poll shows Queenslanders, like the rest of Australia, oppose the Adani taxpayer loan and want this money put into other industries.
- Adani’s jobs claims are overblown.
- Mining is capital intensive, while other industries are more labour intensive; massive investment in mining supports fewer jobs than in other industries.
- Coal mining is a relatively small employer, even in North Queensland.
- The government should stop funding mining projects, as they don’t need help, according to the Productivity Commission.
- Adani has said repeatedly they don’t need the loan.
- Subsidising new coal mines would hurt both existing coal jobs and the climate.