PM Julia Gillard: Aussies Deserve Their Share of Minerals Boom

Australian Prime Minister Julia Gillard gave the minerals resource rent tax a boost on Wednesday night by saying at the Minerals Council of Australia annual dinner that the government with go on with spreading the benefits of the mining boom.

Although she is aware that many mining executives differ with how government is using proceeds of the mining tax and carbon tax such as funding compensation to low- and medium-income earners, Ms Gillard stressed that the benefits of the boom must be spread.

"You don't own the minerals. I don't own the minerals. Governments only sell you the right to mine the resource. A resource we hold in trust for a sovereign people. The own it and they deserve their share," The Australian quoted Ms Gillard.

She acknowledged that Australian mining firms are "not all in love with the language of 'spreading the benefits of the boom.'" The prime minister conceded that miners work hard, compete in a tough global environment, take big risks and earn the big rewards.

However, she pointed out that other Australians outside the mining industry also toil equally as hard, citing the work by panel beaters in car factories, police officers and hospital staff.

While Rio Tinto Managing Director David Peever admitted that the dinner was good for the county's mining industry, he took the opportunity to criticise the apparent attack on mining executives by the Labor Party.

"Divisiveness can have no future in the vibrant Australia to which we all aspire, where all Australians can be better off and continue to enjoy the unique fruits of this great land," Mr Peever said.

While he emphasised that mining has a vital role to play in creating a better future for all Australians, Mr Peever said complacency and inadequate understanding of the drivers for the sector are the enemies of industry which paid $23 billion in taxes and royalties in 2011.

In the same event, Resources Minister Martin Ferguson defended the enterprise migration agreement extended to Aussie mining companies which had been criticised by unions and some MPs. He insisted there is a real labour shortage problem in Australia worsened by refusal of many workers to go to the places where the mining jobs are.

"You can't therefore have people sitting on their hands in places like Sydney and Melbourne saying whilst people aren't prepared to travel, you can't bring in foreign workers," The Australian quoted Mr Ferguson.