The NSW Government’s move to hike mining royalties would immediately hit Commonwealth infrastructure spending as well as plans to boost superannuation and cut company tax, the CFMEU Miners Union said today.

According to the miners, this decision undermines federal attempts to share the benefits of the mining boom across the economy.

CFMEU President Tony Maher said “These programs to be funded by the federal Mining Resources Rent Tax are designed to see the benefits of the mining boom spread across the economy.

“Barry O’Farrell, following Tony Abbott’s lead, is wrecking that approach. His justification – that the carbon price will impact the value of NSW’s electricity generation assets – is completely hypothetical,” he said.

“The carbon tax isn’t introduced for another year and there are many factors affecting the value of those assets.

“The NSW Government has already raised $1.7 billion in mining royalties in the past year. This is just a cynical excuse to get more money in the bank.”

While the Coalition campaigns federally against the MRRT and has vowed to repeal it, state Coalition governments are using the federal resources tax as an excuse to hike their own mining taxes, said Mr Maher.

“The message from the Coalition is that it’s ok for state governments to increase their mining taxes, but not the Federal Government. Macquarie Street can do it but Canberra can’t.

“The onus is now on the NSW Government to tell us how it will spend this increase in mining royalties to benefit NSW communities – particularly those rural and regional communities bearing the brunt of the boom with pressure on their roads, housing and social services.”