WA Labor calls on Gillard to modify MRRT for better political future
The federal government needs to fine tune its proposed mineral resource rent tax or even postpone its implementation should it want to improve its stature on state politics, specifically on the mine-rich regions of Queensland and Western Australia.
WA Labor MP Mark McGowan urged Prime Minister Julia Gillard on Tuesday to first recalibrate the perceived flaws of the federal-sponsored MRRT prior to its actual introduction.
Better yet, Mr McGowan stressed that the Labor-led federal government must formally legislate the controversial tax measures to assure all stakeholders that the promised exclusion of magnetite, gold, nickel and copper would be followed by the commonwealth to the letter.
He added that the collected funds from the MRRT must be proportionately allocated, with preferences given to states which are contributing the bulk of mining profits to the national coffer.
Mr McGowan pointed out that the federal government must take heed on the collective voice of the people, especially from Queensland and Western Australia, and that way the Labor party's political standing in both areas could see dramatic improvements.
He argued that the proposed MRRT reflects heavily on the federal government, stressing that "the commonwealth must listen to the verdict of the people over here and make some changes."
On his part, Federal Treasurer Wayne Swan dodge any suggestions that the MRRT would be included on the scheduled tax summit next year though he admitted that some form of benefits could be obtained if the proposed tax could modify its debated provisions.
Mr Swan cited that cuts on corporate taxes could deliver some goods and spikes on superannuation could further better the prospect of the Labor government in Western Australia and most of the mining regions, as he acknowledged that "the downside for us could be alleviated by the changes I'm suggesting."
WA Premier Colin Barnett echoed Mr McGowan's sentiments that the MRRT brought political setbacks for the Labor party in the state and following the national elections last August, only three seats were captured by the party out of the 15 lower house seats for the state.
Mr Barnett said that after its election debacle in WA, the Labor party has come to terms on its pitfalls but he maintained that the planned MRRT would not be realised even when changes for its adjustments were made within the organisation.