Mining tax battle hits fever pitch

The federal government's controversial mining tax has ignited an all-out advertising
war, with small miners the latest group to sound a battle cry.
A West Australian-based minerals group, representing 220 small miners, has set up a
rolling "fighting fund" it wants to use to spruik its anti-mining tax message.
The advertising blitz, which shows "Comrade Kevin" Rudd being thanked by Russian
miners for making their country rich, is due to start on the west coast on Monday
before marching its way east.
It's the latest campaign slated to hit the airwaves over the government's 40 per
cent mining profits tax - debate on which has continued to rage, particularly after
news of the government's own mining tax offensive.
It will run out a $38.5 million "information campaign" to promote the tax - paid for
by taxpayers - arguing it has a duty to clear up the myths spread by the mining
sector.
But the government has been savaged for sidestepping the strict advertising vetting
protocols it introduced.
It used a special exemption to greenlight the campaign by claiming a matter of
"extreme urgency" and "compelling reason".
Both the opposition and the Australian Greens have criticised the government's move
and will launch separate counter-offensives when parliament resumes.
The coalition is calling for a Senate inquiry into the tax campaign, questioning why
the government failed to mention it - despite its so-called urgency - during last
week's Senate hearings.
"(Special Minister of State Joe) Ludwig sat through his estimates this week without
showing any indication of this campaign being urgent," Liberal frontbencher Eric
Abetz said.
Meanwhile, the Greens will attempt to introduce legislation on government
advertising that ensures all escape clauses are ruled out.
Greens leader Bob Brown attacked the government for "purloining the public purse",
but said the coalition weren't much better, having spent millions on "similar
self-promoting public advertising exercises" when in government.
The advertising war - now involving the government, miners, the coalition, unions
and lobby groups - will impose a great cost on the average taxpayer, Senator Brown
said.
The government was again defending its million-dollar campaign on Sunday, denying it
was effectively an admission the government had lost ground in the debate.
"This decision was announced in the budget," Finance Minister Lindsay Tanner told
Network Ten.
"It has been brought forward because of the misinformation campaign that we're facing."
Fellow government frontbencher Craig Emerson added it had become urgent "because the
current campaign is a scare campaign".
Queensland mining magnate Clive Palmer also entered the fray on Sunday, complaining
the government was using his money and taxpayers' money to push its political
agenda.
Dr Emerson later attacked Mr Palmer as a major financial backer of the Liberal and
National parties.
Meanwhile, Rio Tino has accused the government of trying to become the giant mining
company's "silent partner".
"We have someone now coming in to say: `I want to be your silent partner, I want 40
per cent of your pre-tax profits and largely written-off assets'," Rio Tinto boss
Tom Albanese told ABC Television.
The minerals giant is set to release "verified numbers" soon to clear up exactly how
much the miners pay in tax, he said.



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