Electorate against resources tax: miners

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This was published 13 years ago

Electorate against resources tax: miners

By Mathew Murphy

AUSTRALIA'S mining community claims Labor has been sent a strong message against its resources tax and that Julia Gillard should abandon it if she manages to cling on to government.

As the election outcome hangs in the balance, miners nationwide were quick to point to swings against Labor in the resource-rich states of Queensland and Western Australia as evidence of a backlash against the minerals resource rent tax (MRRT) and the way it was handled.

In one of the few key policy differences between the two major parties, Labor has proposed a 30 per cent tax on some segments of the mining industry, funds from which would be redirected into infrastructure priorities. The Coalition would scrap the tax entirely.

One of the leading opponents of the mining tax, Fortescue Metals boss Andrew Forrest, congratulated ''all sides of politics in our colourful democracy'' but warned them to take heed of the electorate's concerns.

''We ask them to hear the loud election outcome that no party has a mandate to introduce arbitrary, unfair and inconsistent economic intervention without full national consultation.

''Australia has now rejected irresponsible economic management and we ask all those who have sought and found their first or next term in Parliament to keep the economy forefront in their mind.''

BC Iron managing director Mike Young said Ms Gillard needed to listen to the electorate if she was given a second chance. ''Julia Gillard cited Bill Clinton when she said 'the people have spoken, but we just don't know what they have said'. Well, I think we know they have said they didn't like the mining tax and they didn't like the way Kevin Rudd was dealt with,'' he said.

''The swing to Labor in Victoria can be put down to John Brumby's stewardship there. Tasmania and South Australia have probably swung back to Labor. I think once the Olympic Dam expansion was secured through the mining deal South Australia settled down a bit.''

Mr Young said he believed the independent MPs should opt in favour of the Coalition and Tony Abbott, who he said would provide a more stable government.

''I think you have to give the Coalition a crack,'' he said. ''Australians like the idea of a fair go. Kevin Rudd didn't get a fair go so why should Labor?''

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David Flanagan, the managing director of fellow West Australian iron ore company Atlas Iron, said the campaign against the mining tax was just one factor in the swing against Labor.

''For us in Western Australia the mining tax has been the most important thing but for other people around the country there have been other things as well: the Building the Education Revolution, the Pink Batts program, the emissions trading scheme. I think different issues have caused different people to turn their backs on the government,'' he said.

Mr Flanagan said Labor had no mandate to introduce the MRRT, even if it was returned to office.

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''If the independents were to support Labor it is unlikely that they would do so and give the government a mandate to bring in this tax,'' he said.

Western Australia's Chamber of Minerals & Energy said it was willing to work with the party elected to govern but did not offer a preference as to which one it should be.

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