MEMBER for Monaro John Barilaro raises a valid point when he questions the long-term viability of industries that rely on government subsidies not to flourish, but to simply survive.
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Mr Barilaro's comments come in relation to ongoing debate over the construction of wind farms throughout the region, funded in large part by the ACT Government in its commitment to sourcing clean, renewable energy.
The simple fact is, few if any of these developments would be economically viable in a strictly competitive marketplace.
In order for developers to build wind turbines, they must first have a guaranteed, long-term fixed price (in this case from the ACT Government) for their product.
That price may, and likely will, differ from the market rate. But under the current arrangements, that is irrelevant to developers as the government is there to step in cover the difference.
This ensures the financial viability of the project. But it also leaves you and every other tax payer on the hook.
Mr Barilaro pointed to the recent examples of Ford and Toyota in Victoria as companies that have only survived as long as they have by suckling on the tax payers' teat.
Eventually however, the money runs out and the companies pack up shop. After all, what incentive is there for companies to operate under a financially sound business model if they know the government cheque book is there to bail them out?
Now obviously, when it comes to wind power, there are government incentives to support the industry that go beyond simple economics.
A desire to convert from fossil fuel intensive power sources to clean, green alternatives is a laudable and, in the long-term, necessary step.
But that doesn't take away from the fact that these industries need to be able to stand competitively on their own two feet - without having to lean on the government for support.
