Gina Rinehart Hits Aussie Gov’t for Unsustainable Debt Levels, Using Mining as ATM

Gina Rinehart, the richest person in Australia, is renewing her criticism of the federal government's policies, hitting it for incurring debt levels that are unsustainable and for treating the mining industry like an ATM.

She will make those strong statements in a speech to be delivered at the Australian Mines and Metals Association conference in Melbourne on Friday. She will also push for reform to avert Australia suffering from financial and social chaos like what is happening in the eurozone.

"What few seem to properly understand - even people in government - is that miners and other resources industries aren't just ATMs for everyone else to draw from without that money first having to be earned, and before that, giant investments are made," she said in a video to be shown at the conference.

She said that six year after the record mining boom, Australia is now in a record debt and the federal budget is expected to go through another deficit that will worsen the country's debt level.

"This debt is simply unsustainable, especially when Australia now face an increasing elderly population with increasing needs, and fewer workers top pay for it all. This lucky country has got to start thinking, and acting," she added.

The mining magnate blamed the bureaucracy and too many laws for damaging Australia's reputation on the global stage, resulting in the Aussie economy becoming too expensive and cost uncompetitive, reiterating remarks she made a few months ago.

To back her criticisms, Ms Rinehart cited Woodside Petroleum's decision to shelve its $40 billion James Price Point gas project in Western Australian and a forecast by former Ford global head Jac Nasser that Australia's car industry would eventually die as proofs that Australia is fast becoming an unattractive place for investors.

She pointed to Singapore as a model for Australia to emulate, citing the low taxes in the city-state to encourage investment and development. Ms Rinehart also pushed for the creation of special economic zones in different parts of northern Australia which is rich in natural resources.

"In contrast we've been saddled with bad government policies that make us uncompetitive, when we could instead make the north a productive food bowl and source of minerals, as well as a centre for medical care, tourism and serviced for not just Australia but our Asian neighbours," she said.

Her remarks would likely add to her controversial public image fueled in the past by strong remarks and suggestions such as the country's wages are too high and for Aussies to cut their drinking and smoking to become rich.