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And the rate subsidy for burning agricultural waste to generate electricity is not high enough to make it economical in many areas.
The maximum interest rate subsidy payable under the old guidelines was $100,000 in any 12-month period, with a cumulative maximum of $500,000 over five years.
A day after treasurer Joe Hockey warned "the age of entitlement" was over, the chairman of the National party policy committee, Peter Langhorne, said the EC interest rate subsidy should be a key part of any "solid drought package".
The former Labor government stopped interest subsidies in 2012 with the support of the states and territories, but a form of interest rate subsidy is expected to be included in the drought package prepared by Joyce for cabinet.
He says things like, "the Keynesian answer to the problem of continued unemployment seems to be to give corporations an interest rate subsidy to offset the additional burden caused by excessively high wages", as if there weren't a long and detailed body of economic literature on monetary policy detailing the channels through which it operates.
Through the bank, a state interest rate subsidy can be implemented – in some cases, 75% and more of the interest can be returned to the new company.
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This assurance will include access to household support and interest rate subsidies.
We will remove the $500,000 upper cap on interest rate subsidies over five years".
Even though Federal and state agencies pay for network access, rate subsidies and the expense of building up the network are costing the state around $25 million a year.
And he then explains his view by analogising interest rate subsidies to energy subsidies, which is odd given that the economists he's engaging don't need analogies to grasp the workings of monetary policy.But sure, I'm happy to agree that if America provided a large, money-financed subsidy to energy that would be quite stimulative.
In negotiations over the last several months, the commission staff has extracted several concessions out of Iberdrola, including a promise of $201 million in rate subsidies to existing Energy East customers to ensure that they do not pay more for electricity as a result of the sale.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com