Mining rent tax not dead yet

Thoughts that a mining rent tax will fade into the night because of the political
stalemate in Canberra may be premature.
Two of the independents that Labor and the coalition may both need to woo to help
form a government are in favour of a resource rent tax and a shift away from state
mining royalties.
But a third independent believes a tax of any sort will do "untold damage" to the
economy.
The newly elected Green in the House of Representatives supports Labor's original 40
per cent resource super profits tax (RSPT) rather than the current watered-down
version.
But all agree that Labor's response to the Henry tax review was badly handled.
Independent Tony Windsor said he was also surprised the idea of a more efficient
rent tax wasn't adopted by the coalition.
"The only reason they probably didn't, it was a convenient add-on to the waste and
mismanagement ramblings that were going on in terms of the stimulus package," he
told the National Press Club in Canberra.
He said it became a political strategy rather than having anything to do with
economics and the raising of taxation from resources.
Independent Rob Oakeshott said the government's response to the tax review was a
clear example where parliament "flopped".
He said the wider community should have been engaged in the process, rather than
just a `gang of four' and vested interests.
"We might have got a better result for Australia," he said, rather than a "dirty big
fight with the mining industry".
Former prime minister Kevin Rudd, Prime Minister Julia Gillard, Treasurer Wayne Swan
and retired former finance minister Lindsay Tanner were labelled the `gang of four'
for not being more consultative in government proposals.
But Mr Oakeshott said the review is still there to be acted on, and the mining
industry was supportive of the shift from state-based royalties to a resource rent
tax.
"I'd love a government response to all those recommendations, not just a couple, and
then let's have a genuine tax reform debate in this country and work forward from
there," he said.
Opposition Leader Tony Abbott has said a coalition government would release all the
modelling of the tax review with a view to taking some of its recommendations on
board.
Independent Bob Katter said the mining tax would have done "absolutely untold
damage" to the economy.
He was never consulted on the issue, despite coming from a mining background, but
said 19 out of 20 mining projects would have gone down the chute in what is a
"rollercoaster industry".
"If you are going to ride that rollercoaster then you have got to be able to make
the profits on the upswing to cover you for the losses you are going to make on the
downside," he said.
The Greens' Adam Bandt said his party was disappointed at the government's backdown
to a 30 per cent minerals resource rent tax.
"What it says about the current state of democracy in Australia (is) that a few
people gather together with a substantial amount of money and run a few ads and all
of a sudden a fantastic proposal ends up being watered down," he said.
Ms Gillard later told reporters in Canberra after meeting with the three
independents that new Western Australian Nationals MP Tony Crook would be sitting as
a cross bencher and not a member of the "Truss Nationals".
"As is publicly known, Mr Crook and myself have a very different view about the
minerals resource rent tax," Ms Gillard said.
She said Mr Crook is focused on infrastructure and services for his constituency.
"I have undertaken to provide him with information in writing about the government's
policies and plans," she said.



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