The mining industry has launched new advertisements warning the Federal Government not to hit it with further tax increases.
The industry spent more than $20 million on an advertising campaign targeting the Rudd government’s original mining tax.
It pulled the ads after Julia Gillard took power and negotiated a new mining tax with the industry.
Now the Minerals Council of Australia has ended its truce with the Prime Minister by taking out new full-page newspapers ads warning about further potential tax hikes for the resource sector.
The council says the industry is «not a bottomless pit» and that it already pays 500 per cent more taxes and royalties than a decade ago.
There is speculation mining companies will be stripped of diesel fuel rebates and other tax concessions in the next budget.
The council’s chief executive, Mitch Hooke, told ABC’s AM program that would discourage investment.
«It’s not in anyone’s interest to weight down your frontrunners,» he said.
Mr Hooke says the latest ads were launched to counter «a plethora of commentators» who are seeking to «demonise» the industry.
«They are promoting the politics of envy and redistribution and it is a softening-up exercise for what would appear to be a whole new round of taxes coming in the budget,» he said.
You’ve got activists groups like Get Up, you’ve got the Greens and of course the Treasurer [making] infamous statements about the mining industry not paying a fair share.
We’ve got this fear and it is well grounded because this is exactly the kind of atmosphere that we were in before the Super Profits Tax was announced back in May 2010.
[They’re] softening up the public, creating the perception that we are not paying our way and therefore rendering us an easier hit for new taxes under the budget and it is not in anybody’s interests to be weighing down your frontrunners to the point that our international competitors race past us.
Minerals Council of Australia chief executive Mitch Hooke
When asked if launching the ads constituted a breach of trust with the Government, Mr Hooke said it was a «tough call» for the council.
«We held out. We held out of that space during the negotiations and discussions on the new Minerals Resources Rent Tax and we held absolutely to the heads of agreement with the Government,» he said.
«That tax has now gone through Parliament, that is my point. We now have a new Minerals Resources Rent Tax, there is a carbon tax coming, there has been a 500 per cent increase in the amount of taxes and royalties we are paying.
«We’re the ones that are wearing the accusations that we are not paying our way, yet last year alone we paid taxes and royalties more than the entire defence budget – that is $22 billion. We paid $24 billion.»
Mr Hooke would not say if the industry would ramp up the campaign if the Government pushes ahead.
«We’ll take it one day, one week at a time. We’ll just see how it goes,» he said.
Topics:mining-industry, business-economics-and-finance, government-and-politics, federal—state-issues, federal-government, australia
First posted April 13, 2012 09:01:54
The industry spent more than $20 million on an advertising campaign targeting the Rudd government’s original mining tax.
It pulled the ads after Julia Gillard took power and negotiated a new mining tax with the industry.
Now the Minerals Council of Australia has ended its truce with the Prime Minister by taking out new full-page newspapers ads warning about further potential tax hikes for the resource sector.
The council says the industry is «not a bottomless pit» and that it already pays 500 per cent more taxes and royalties than a decade ago.
There is speculation mining companies will be stripped of diesel fuel rebates and other tax concessions in the next budget.
The council’s chief executive, Mitch Hooke, told ABC’s AM program that would discourage investment.
«It’s not in anyone’s interest to weight down your frontrunners,» he said.
Mr Hooke says the latest ads were launched to counter «a plethora of commentators» who are seeking to «demonise» the industry.
«They are promoting the politics of envy and redistribution and it is a softening-up exercise for what would appear to be a whole new round of taxes coming in the budget,» he said.
You’ve got activists groups like Get Up, you’ve got the Greens and of course the Treasurer [making] infamous statements about the mining industry not paying a fair share.
We’ve got this fear and it is well grounded because this is exactly the kind of atmosphere that we were in before the Super Profits Tax was announced back in May 2010.
[They’re] softening up the public, creating the perception that we are not paying our way and therefore rendering us an easier hit for new taxes under the budget and it is not in anybody’s interests to be weighing down your frontrunners to the point that our international competitors race past us.
Minerals Council of Australia chief executive Mitch Hooke
When asked if launching the ads constituted a breach of trust with the Government, Mr Hooke said it was a «tough call» for the council.
«We held out. We held out of that space during the negotiations and discussions on the new Minerals Resources Rent Tax and we held absolutely to the heads of agreement with the Government,» he said.
«That tax has now gone through Parliament, that is my point. We now have a new Minerals Resources Rent Tax, there is a carbon tax coming, there has been a 500 per cent increase in the amount of taxes and royalties we are paying.
«We’re the ones that are wearing the accusations that we are not paying our way, yet last year alone we paid taxes and royalties more than the entire defence budget – that is $22 billion. We paid $24 billion.»
Mr Hooke would not say if the industry would ramp up the campaign if the Government pushes ahead.
«We’ll take it one day, one week at a time. We’ll just see how it goes,» he said.
Topics:mining-industry, business-economics-and-finance, government-and-politics, federal—state-issues, federal-government, australia
First posted April 13, 2012 09:01:54
