Australia loses resources assets as Gillard Government revels in its carbon tax betrayal

17/10/11

Just days after Prime Minister Julia Gillard’s arrogant display of triumphalism over the passage of her toxic carbon tax, the Australian energy and resources sector has suffered a blow with the announcement that Rio Tinto intends to downgrade and then offload several of its Australian assets, Shadow Minister for Energy and Resources Ian Macfarlane said.

Rio Tinto has announced that it plans to divest thirteen of its global assets, including several in Australia such as the Gove bauxite mine and alumina refinery, Boyne Smelters and the Gladstone Power Station, the Tomago smelter and the Bell Bay smelter.

“Companies will make these types of decisions based on their own analysis and assessments, but there is no doubt that the introduction of the Gillard Government/Greens carbon tax, along with the Minerals Resource Rent Tax, will make Australia a less attractive destination for energy and resources investors,” Mr Macfarlane said.

“As the Gillard Government continues to dance to the Greens’ tune, it can expect to see more major energy and resources investors think twice about future projects in Australia.

“The Coalition has repeatedly warned the Labor Government that it cannot use the energy and resources sector as a cash-cow to fuel its debt problem, nor can it arrogantly assume that resources companies will stick with Australia, regardless of what flawed policies the Government throws at them.

“Contrary to the back-slapping, hugs and kisses from members of the Labor Party and the Greens, the carbon tax is not something to celebrate.

“It is a toxic tax that will risk further jobs and investment in the energy and resources sector and drive up the cost of living for everyday Australians and small businesses.

“While Labor members of Parliament, including several from major coal mining and resources seats, have turned their backs on their electorates and betrayed the trust of their constituents, the Coalition’s position is clear. We are opposed to the carbon tax and would rescind it in Government.”