MCA Ends Truce with PM Gillard, Launches Ads Critical of New Taxes
The mining industry resumed its fight against what it called excessive tax measures being unleashed by the federal government with the publication of full-page ads that called attention on alleged tax hikes planned by Prime Minister Julia Gillard.
The ads were put out, according to Minerals Council of Australia (MCA) Chief Executive Mitch Hooke, in response to speculations that the national government is looking on the likelihood of scrapping the tax concessions currently enjoyed by mining companies to support of its goal to raise revenues and deliver the promised budget surplus by 2013.
Of particular concern to the MCA, Mr Hooke said, is the possibility that the diesel fuel rebates handed out to companies would be shelved as Federal Treasurer Wayne Swan scampers to identify sources of more government revenues prior to the national budget presentation on May 8.
In an interview with ABC on Friday, Mr Hooke warned that Mr Swan's plan would unduly hurt investors' confidence and subsequently impact on the prospective growth of the local mining industry.
"We're making our position very clear that without a stable tax system, you continue to undermine the industry's confidence to invest and grow for the long-term," Mr Hooke told ABC.
Also, he accused the government of employing the services of advocacy groups to put mining firms in bad light while Mr Swan himself leads the war against the miners by painting them as a greedy lot that refuses to pay its fair share.
"They are promoting the politics of envy and redistribution and it is a softening-up exercise for what would appear to be a whole new round of taxes coming in the budget," the MCA chief told ABC.
On the contrary, Mr Hooke stressed that miners have been paying 500 per cent more taxes from more than a decade ago and yet federal authorities seem to regard the resource industry as 'a bottomless pit' where more revenues can be taxed from.
"We're the ones that are wearing the accusations that we are not paying our way, yet last year alone we paid taxes and royalties more than the entire defence budget - that is $22 billion. We paid $24 billion," Mr Hooke explained.
And in spite of such large contribution to the national treasury, the industry, Mr Hooke lamented, now faces the possibility of more tax obligations with the impending roll out this year of the mineral resources rent tax (MRRT) and the carbon tax.
Mr Hooke, however, did not qualify if the MCA ads would trigger the same advertising campaign that was seen two years ago when former Prime Minister Kevin Rudd unveiled his ill-fated resources super profits tax (RSPT).
That tax raised a howl among miners, which then financed the million-dollar ad campaigns that eventually led to the ouster of Mr Rudd as Labor leader and prime minister.
Upon her assumption of the top post, Ms Gillard negotiated a truce with giant miners and the ads, which reportedly cost some $20 million, were pulled out by the industry.
The present campaign, according to Mr Hooke, will not necessarily shape up in the same manner.
"We'll take it one day, one week at a time. We'll just see how it goes," the MCA boss said.