Crook to move last minute amendments to Mining Tax

Author: Tony Crook
Published on: 03-November-2011

Nationals WA Member for O’Connor Tony Crook MP has announced his intention to move last minute amendments to the Minerals Resource Rent Tax (Mining Tax) to deliver a better outcome for smaller miners.

Mr Crook offered the Government a chance to allay concerns that small and developing miners would not be unfairly penalised under the Mining Tax during Question Time today.

“Is this Government prepared to guarantee in legislation that the rest of the resources industry will not pay the Mining Tax earlier than the Big Three (Rio Tinto, BHP Billiton and Xstrata)?”

Mr Crook said the Government’s response showed complete disregard for the resources sector – which has remained shut out of Mining Tax negotiations.

“Instead of responding to the concerns of the resources industry, Treasurer Wayne Swan ignored my question and chose to single out Fortescue Metals Group Chairman, Andrew Forrest, who was seated in the gallery.”

Mr Crook said the response from the Treasurer showed poor form.

“Even after the Treasurer was directly called on by the Speaker of the House to address the question, the Treasurer was unable to provide a clear response.

“What we can take out of this is that the Gillard Government – through secret negotiations with the Big Three – has developed a Mining Tax that benefits multinational corporations at the expense of more than 300 smaller and developing resources companies.

“This is a completely unfair situation for smaller mining companies, who are forced to compete on the same global playing field as the Big Three at a higher tax rate.”

In Canberra this week, Mr Crook met with representatives from a number of resources companies to discuss industry concerns to the Mining Tax.

“Fortescue Chairman Andrew Forrest has publicly stated that under the current Mining Tax proposal, Fortescue will pay less tax than smaller resources companies.

“He believes this is unfair, the resources sector believes this is unfair, 320 small and developing resources companies who have been shut out of Mining Tax negotiations believe this is unfair – yet the Gillard Government believes this is an acceptable outcome.”

Mr Crook said he would spend the Parliamentary recess developing amendments to the Mining Tax to give smaller miners a better deal.

“The Gillard Government needs to recognise that these mining companies deliver great benefits to regional Australia – through employment and training opportunities; and also through the provision of valuable and voluntary contributions to the community.”

The Minerals Resource Rent Tax Bill has been referred to the House Economics Committee for further scrutiny.

The Committee is due to report on Monday, November 21, 2011.

See this article on the member's website