Treasurer reveals more chaos ahead for the MRRT

30/09/11

The Gillard Government’s mining tax is set to become even more chaotic, after the Treasurer indicated today that new changes are in store - a comment at odds with the stated views of the Resources Minister, Shadow Minister for Energy and Resources Ian Macfarlane said.

“Wayne Swan today said the Government would ‘deal with that in time’ on the question of the Commonwealth reimbursing mining companies for increases in State Government royalties,” Mr Macfarlane said.

“Yet just two days ago Resources Minister Martin Ferguson insisted that the mining tax deal was ‘dusted and settled’ and that there would be no more alterations.

“The MRRT is a mess. It’s little wonder the Government is now frantic to fix the gaping holes in the tax design created by Julia Gillard’s desperation to do a deal with the big three miners and get the tax debacle off the table before last year’s election.

“But Australia’s resources sector deserves better than an almost daily surprise package as to what the Gillard Government has in store for it.

“The Government’s constant bungling on the resources tax and on the carbon tax are damaging Australia’s sovereign risk profile and putting Australian jobs at risk.

“How can resources investors take anything this Government says at face value when it is constantly rewriting the rules?

“The Government claims to have ruled out caving in to the Greens’ demands that gold be included in the MRRT and that the tax rate be extended, but it’s clear from the Treasurer’s comments today that the Gillard Government is making resources policy on the run.

“The Prime Minister should end the charade and admit the MRRT is a deeply flawed tax which will only inflict damage on Australia’s resources sector.”