Thu, 15th May 2008

Exploration promise broken in Budget

Senator the Hon David Johnston
Shadow Minister for Resources and Energy, Tourism

The Rudd Government has failed the resource sector and broken an election commitment by refusing to include in the Budget a scheme promised to stimulate exploration and guarantee our resources industry for generations to come.

Shadow Resources and Energy Minister David Johnston said the Rudd Government had falsely lifted the hopes of the resource exploration industry by promising a flow-through share scheme as soon as they were elected.

A flow-through share scheme offers a generous tax deduction to people who invest in small exploration companies who take huge financial risks by looking for resources in unexplored areas of the country. Already introduced in Canada, it has propelled the country to the top of the league table of countries undertaking exploration.

Senator Johnston said both former resources spokesman Chris Evans and the current Resources Minister Martin Ferguson had both promised with their hands on their hearts that they would make sure a flow-through share scheme was implemented soon after the election.

“The cat was let out of the bag in the February Senate Estimates hearings when I questioned the relevant Departmental officials who basically admitted it was not a priority of the new government,” Senator Johnston said.

“The Rudd/Swan Budget has failed point blank to deliver on this election promise and failed to deliver to the exploration industry on what they considered to be a rock solid commitment,” Senator Johnston said.

“This reminds me of the current Environment Minister’s infamous motto – “once we get in we’ll change all that” - an admission that is glaringly obvious after this week’s Budget.”