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Australia cannot afford to ignore offshore subsidies

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The Productivity Commission has been chided as “naive” over its criticism of government subsidies for batteries and other clean energy products, with proponents of the support saying Australia has little choice even in areas where it has comparative advantages.

The independent advisory body on Thursday challenged the Labor government’s eagerness to establish a taxpayer-backed battery making industry, warning it would not boost national welfare and would entrench rent-seeking.

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Jacob Greber writes about politics, economics and business from Canberra. He has been a Washington correspondent and economics correspondent. Connect with Jacob on Twitter. Email Jacob at jgreber@afr.com
Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter. Email Brad at brad.thompson@afr.com

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    Original URL: https://www.afr.com/link/follow-20180101-p5dpy6