The Business Council of Australia has urged the Federal Government to chuck its proposed resources super profits tax on the mining industry and provide a new one with a comprehensive public consultation.

The relationship between the government and the mining industry has put both sides in a negative light as they quarreled and used bullying tactics over the RSPT issue.

The business council seeks a new consultation process with tax options on the resource industry.

"The breakdown in the process around the RSPT has damaged Australia's international standing," council president Graham Bradley said in a statement to the Australian Financial Review on Monday.

Mr. Bradley said there may be long-term consequences for growth and investment if both sides will disagree and the industry concerns were properly addressed.

"The best alternative now for the government is to embark on a revamped process for the development and design of a more efficient and less damaging approach to taxing resource profits."

Finance Minister Lindsay Tanner defended the Government and said it was not holding talks with the industry “just for the sake of it.”

We want to achieve an outcome," Mr. Tanny told ABC Radio. He said a "right" outcome must be achieved after consultations.

"Obviously it is desirable that outcome occur soon."