Oct 26th 2022

A huge new fossil fuel subsidy revealed in budget with 1.9bn for Middle Arm

Labor must confirm not one cent of this public money will be spent on enabling new gas and fracking projects.

During last night's budget, Labor announced a whopping $1.9 billion in funding for the Northern Territory’s Middle Arm, citing it as a ‘Sustainable Development Precinct’, ‘including common use marine infrastructure and regional logistics hubs’.

What is not being told in this story is that the Middle Arm development is a Coalition-era plan to turn fracked gas from the Beetaloo into plastic, pesticides, and gas for export. Labor must confirm not one cent of this public money will be spent on enabling new gas and fracking projects.

Getup CEO Larissa Baldwin said:

“Our politicians are failing to tell us that the Middle Arm petrochemical plant is a Morrison Government-era plan to turn fracked gas from the Beetaloo into plastic, pesticides, and gas for export. 
“Firstly we were told $1.5 billion would be spent on this project by Catherine King’s office and now the federal Budget outlines $1.9 billion, with Labor claiming this is a ‘sustainable development’.

“This giant gas processing hub on Darwin Harbour would be a disaster for Traditional Owners, water and our climate.

“Public funding for this fossil fuel project flies in the face of a decade of staunch Traditional Owner opposition to fracking on their Country and Labor’s mandate for climate action from voters last election - contradicting Labor’s good work on renewables.

“We can’t let Labor get away with defying Traditional Owners and folding to the gas industry with a huge new fossil fuel subsidy – greenwashed as ‘sustainable development’.

“Tamboran Energy’s CEO told the senate inquiry that fracked gas from the Beetaloo Basin will go to Darwin’s proposed Middle Arm petrochemical plant. The oil and gas lobby group APPEA last night ‘welcome[d] the confirmation of government funding for …Middle Arm’.

“If gas corporations and their lobbyists are pushing for Middle Arm, it’s clear that the $1.9 billion is a fossil fuel subsidy.

“Australians voted for climate action. We want to know exactly where public spending is going and how much is being spent on fuelling gas projects that destroy our land and pollute our water.”

Media Contact: Amy Morgan, +61 02 8188 2870, media@getup.org.aumedia@getup.org.au