Miners boost trade to record surplus

Opposition Leader Tony Abbott says it is "madness" that the government wants to
"clobber" an industry that helped lift Australia's monthly trade surplus to a
massive $3.5 billion.
The record monthly surplus almost doubled from its May level in June data released
on Wednesday, as exports soared seven per cent, led by a 13 per cent jump in
non-rural exports such as coal and iron ore.
It was almost twice as large as economists had forecast.
Treasurer Wayne Swan said this was a "very good" outcome but it gave Mr Abbott an
opportunity to attack the government's planned 30 per cent minerals resource rent
tax (MRRT).
He said the nation's prosperity, "such as it is", is largely based on the success of
the mining industry.
"That's why it is the very midsummer of madness to clobber this successful industry
with a great new big tax that even in its revised form will make Australian mining
taxes the highest in the world," Mr Abbott told reporters while on the hustings in
suburban Brisbane.
"If there is one single policy decision which completely destroys Labor's economic
credentials, it's this."
The MRRT replaced the even more controversial resource super profits tax that was
born out of the Henry tax review.
Mr Abbott said there were many recommendations in the review that deserve further
study, flagging announcements in coming days.
But on Wednesday, the prospect of an MRRT did not stop mining giant Rio Tinto
announcing a further $US790 million ($A866 million) investment to expand its iron
ore operations in the West Australian Pilbara.
A sharp rise in quarterly coal and iron ore contract prices from April 1 has seen a
huge turnaround in Australia's trade position since March, when it was in deficit by
more than $1.5 billion.
Rising commodity prices and a strengthening terms of trade are key factors
supporting a robust economic growth outlook and a return to a budget surplus in
2012/13.
"Debt and deficit" have been the opposition's main attack on the Labor government,
so Mr Swan was surprised when his opposition counterpart, Joe Hockey, refused to put
a number on Australia's net debt position.
When asked to nominate a figure during an interview on ABC Radio, the opposition
treasury spokesman said debt-raising by the Australian Office of Finance Management
(AOFM) varied from "week to week ... month to month".
"If you think you are going to get a gotcha question in ... you won't," he said.
Mr Swan said he was stunned by the answer, saying Mr Hockey "simply couldn't name or
provide a number".
"(This is) despite the fact he's running around the place making all sorts
allegations about levels of debt and so on," the treasurer told ABC TV.
Mr Hockey later stood by his response in a statement, saying to calculate net debt
to gross domestic product (GDP) as of now, would require knowing the current level
of debt on issue by the AOFM.
Still, Mr Swan said net debt - at six per cent of GDP in 2011/12 - was really good
compared to other advanced economies, describing it as like having an income of
$100,000, and borrowing $6000.
"That's our balance sheet," he said.
But Prime Minister Julia Gillard still won't say who will be actually looking after
the books to replace Lindsay Tanner as finance minister in a re-elected Labor
government.
Mr Tanner is retiring from federal politics at the August 21 poll.
Instead Ms Gillard told reporters while campaigning in Cairns that she and Mr Swan
would be "clearly outlining our economic plans for the future".
Mr Abbott on Tuesday guaranteed that Mr Hockey would be treasurer in a coalition
government and Andrew Robb the finance minister.