BHP chief sees no end to tax row

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This was published 13 years ago

BHP chief sees no end to tax row

By Phillip Coorey CHIEF POLITICAL CORRESPONDENT

THE BHP Billiton boss, Marius Kloppers, says he can see no end to the dispute over the proposed resource super profits tax despite fresh industry-fed rumours that the government was about to offer a compromise to flush out the miners.

Mr Kloppers also distanced his company from the increasingly fiery political row over the tax, saying BHP was fighting for its own interests and not aligning itself with the Coalition, which opposes the tax.

Mr Kloppers told the Herald that BHP had been around long enough to know ''we have to be compatible with whatever government the people of Australia choose''.

''We understand that things change and we understand that governments become oppositions and oppositions become governments,'' he said.

''We need to always scrupulously stick to playing the issue and not the man.''

It has been long rumoured that the government will raise the rate that defines a super profit from 6 per cent to 11 or 12 per cent, bringing the tax in line with the petroleum rent resources tax that applies to offshore oil and gas projects.

To keep the change revenue neutral, the government would drop a provision in which taxpayers would underwrite 40 per cent of failed mines.

But the miners also oppose the tax being applied to existing projects and want different commodities to have different tax rates to keep them internationally competitive.

Kevin Rudd, who is now engaging in direct negotiations with mining bosses, including Mr Kloppers on Tuesday, and Andrew ''Twiggy'' Forrest yesterday, is refusing to budge on either.

Mr Kloppers said: ''I'm always hopeful that sense prevails. I have not seen a path this time how sense is going to prevail as of yet, but I remain hopeful.''

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The miners suspect the government will offer the half-way compromise, putting the acid on the sector. A government source said that although progress was being made, ''there's a long way to go'' before any announcement.

The government is desperate to turn the debate in its favour and will receive some much-needed third party support.

The Herald understands that a Community Tax Forum, set up by the Australian Council of Social Service, the Consumers Federation, the Australian Conservation Foundation and the ACTU, is preparing to come out in support of the government's proposal (see story, page 6). The government sought support from industry superannuation funds, but that has not eventuated.

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After two days in Perth arguing his case, Mr Rudd flew to Mackay last night in the Queensland mining seat of Dawson. The Opposition Leader, Tony Abbott, was in also Mackay yesterday. He said the industry paid its fair share of tax and current arrangements were ''as good as you're likely to get any time soon''.

He was joined by the Nationals senator Barnaby Joyce, who said Mr Rudd was ''off his tree'' and ''lunatic''.

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