The generosity of politicians towards the mining industry knows no bounds, whether it is the wobbling Gillard mob in Canberra or the smug lot led by suave Barry O’Farrell in Sydney.

In yesterday’s 2012 NSW budget, the first from neophyte Treasurer, Mike Baird, the mining companies were stung for an extra $944 million in royalties over the next four years.

Nothing wrong with that, I hear you say. The rich miners should be paying more.

The move will see the Gillard mob receiving less from the proposed minerals resource rent tax, and in turn NSW will find itself $1 billion or so short of cash from Canberra.

But that’s not the real argument. There’s a separate issue, one that is common to all governments: treating businesses as though it is broke and in need of help.

Buried in the budget was the news that Barry’s boys will give $100 million to the mining industry.

Oh ,the poor mining industry. Smothered by a surplus of profits, but in need of government assistance.

Energy and Resources Minister Chris Hartcher said in a statement the $100 million will play an important role in boosting the NSW economy.

‘”The NSW government’s commitment to the mining industry recognises the enormous benefits mining delivers to our state, including more jobs and greater business investment,” he said in the statement.

More than $28 million will be spent on research, developing and showcasing low-emission mining technologies.

There’s also $6.1 million for the rehabilitation of derelict mines, and $5.5 million to expand the government’s New Frontiers exploration initiative.

“With employment of over 35,000 people directly and nearly 86,000 people indirectly through mine and non-mine related services, the NSW government remains committed to supporting the continued development of the NSW mining industry,”’  Hartcher added.

So the mining companies, giants such as Peabody Coal, BHP Billiton, Rio Tinto, Wesfarmers, Newcrest and others are so hard up they need government help to rehabilitate the mining areas they have damaged and to explore for minerals.

A competent government and Treasurer would be requiring the profit-rich mining industry to spend its own money rather than taxpayer’s hard-earned cash in making good old mine sites and exploring for new deposits. Exploration is the lifeblood and mining companies should be spending, not state governments.

This particular initiative recalls those from the Rudd and Gillard governments federally on carbon tax compensation for business and the various green funds for the car industry. It’s corporate welfare of a particularly stupid kind. There is just no need for this sort of aid for big, profitable businesses.

The $100 million could have been applied to lowering payroll tax on small and medium businesses and done more for the state. Now these big miners will be able to fatten their profits by whatever the government contributes.

But competent governments are in short supply in the country at the moment. Just look at the mess the Gillard government has with the MRRT.