Western Australia Minister for Transport Simon O’Brien

Gateway Funding Cannot Be Linked to New Mining Tax

Victor P Taffa

Transport Minister Simon O’Brien said Federal Labor’s promise to fund the Perth Gateway Project should not be at the expense of West Australians through the big New Mining Tax.

“The State Government has been lobbying the Federal Government to commit to this important project since we were elected in 2008.” Mr. O’Brien said.

 “I am pleased that finally our proposition has been agreed to, but it must not be linked to the big new mining tax – that would be counter-productive.”

“Labor’s new tax will rob WA of $7 Billion out of $10.5 Billion in Tax Revenue in its first two years – money that will go directly to Canberra.” Mr. O’ Brien said.

 “I am particularly keen for the Prime Minister to properly detail how the Federal Government’s funding arrangement for the Perth Gateway project will work.”

Western Australia Premier Colin Barnett

New State Agreements Announced

Victor P Taffa

After 12 months of discussions the State Government has reached an historic new agreement with BHP Billiton and Rio Tinto about iron ore royalties for fines and the development of the Pilbara iron ore industry.

From July 1, BHP Billiton and Rio Tinto’s royalty rates will change from 3.75 % to 5.625 % to bring them into line with other iron ore producers and the companies will be able to integrate their Pilbara operations.

This will apply to all production by the companies and will generate an additional $340 Million in State royalties for the 2010-11 financial year.

Under the Heads of Agreement signed today the companies will also make a joint one-off payment to the State of $350 Million.

Premier Colin Barnett said modernising the State agreements reflected the maturity of the Iron Ore Industry in Western Australia.

“This is a win-win deal which gives the companies greater flexibility to integrate their operations and ensures a better return to the community.” Mr. Barnett said.

“Western Australia’s Iron Ore Industry has come a long way since the first State agreements were signed with Rio Tinto and BHP Billiton in the early 1960s.”

“The old agreements recognised the pioneering role the companies would play in the region and offered a discounted royalty rate to acknowledge that fine ore was not a valued product in the market at that time.”

“Since then the companies have made significant investment in dual purpose infrastructure in the region, including developing towns, roads, rail and ports.”

“Today, fine ore has become the main ironmaking feedstock, the Pilbara is known as a world-class iron ore producing area and the industry in Western Australia is well-established with 10 producers and at least 80 companies actively exploring for iron ore.”

“The success of the 1960 agreements in developing the Pilbara means the rationale for discounted royalties is no longer relevant and the time has come to update them.”

The Premier said legislation to formalise the royalty rate changes would be introduced this week.

The companies would make the additional one-off payment of $350 Million to consolidated revenue when further legislation to finalise the changes received royal assent.

“I’m very pleased to confirm the $350 Million one-off payment will be placed in a special account for the new Children’s Hospital, which is due to begin construction in 2012 and due to be completed by 2015.” Mr. Barnett said.

The new royalty rates are forecast to generate an additional $340 Million in 2010-11 and $1.06 Billion over the next four years.

“Some of the additional revenue generated by the increased royalty rates will also go towards the Children’s Hospital so we can nurture and care for the State’s most precious resources.” Mr. Barnett said.

“We expect these contributions will fully fund this important facility.”

The Premier thanked the companies for their willingness to engage in good faith during negotiations with the Government over the past 12 months.

“Today’s successful outcome follows considerable and often tough negotiations and will give the companies the ability to share port and rail infrastructure and blend iron ore which will keep them competitive on international markets.” Mr. Barnett said.

“This presents a new chapter in the iron ore industry and will lead to more efficient and productive iron ore operations and spur further investment in the Pilbara.”

All businesses should “Pay their fair share” of taxation but it is hard to fathom on the one hand State Government’s taxing the Mining Industry and on the other hand the Rudd Government “Crying Poor” that the Mining Industry should pay their fair share of 40% as well.

The Southern Thunderer will be happy to pay Taxation when businesses and any Government Department’s consider advertising in The Southern Thunderer.

If as with Hospital takeovers the Mining Tax of 40% is a backdoor means to abolish State Government’s then people who want Constitutional reform should come up with a better system of Government.

Should State Government’s be abolished and replaced with expanded Regional Government’s then these Regional Government’s would require Constitutional Authority.

Furthermore if State Government’s were abolished Capital Cities such as Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart or Darwin could not be called ‘Capital Cities’ but instead downgraded to the status of ‘Regional Cities.’

South Australia Shadow Treasurer Iain Evans

Foley’s Fumbling and Rudd’s Mining Tax Hurts SA Business Confidence

Victor P Taffa

Business confidence in South Australia has tumbled to a record low confirming everyone’s worst fears of the detrimental effect of Kevin Foley’s fumbling and the Rudd Government’s Mining Super Tax.

The Sensis Business Index released today shows South Australia now has the second worst business confidence of all states – second only to New South Wales.

Shadow Treasurer Iain Evans said it was further proof the state’s business community had lost confidence in fumbling Treasurer Kevin Foley following the recent budget blowout on the Adelaide Oval redevelopment and his memory lapses. The budget blowout on the railyards hospital will not help the situation.

“South Australian businesses recorded the largest fall in confidence of all states, foreshadowing what they believe will be a horror State Budget in September.” Mr. Evans said.

“The Business Community is concerned it will be one to suffer from Kevin Foley’s ‘slash, burn and tax’ budget, which will see taxes increased and costs to business increased.”

“This lack of confidence is directly correlated to the fact only 4% of businesses believed the Rann Government’s Policies were ‘supportive’, again putting South Australia at the bottom of the pile.”

“The shocking level of business confidence can also be explained by how detrimental business operators feel the Rudd Government’s Mining Super Tax will be to the State’s Economic Environment generally.” Mr. Evans said.

“Premier Rann and Treasurer Foley say they have lobbied SA’s case to the Rudd Government but it doesn’t seem that the State’s Business Community is confident it has achieved anything.”

“The Business Community is very concerned the Mining Super Tax will impact negatively on them but its concerns are not being heard by the Rann Government.”

“The report also showed South Australian businesses are expecting economic conditions to deteriorate further during the next 12 months – following what is expected to be a horror State Budget.” Mr. Evans said.

Senator for Tasmania Stephen Parry

LABOR MP’S ‘SPECIAL CASE’ CLAIM RAISES MORE QUESTIONS OVER NEW MINING TAX

Victor P Taffa

CRACKS are appearing in the Rudd Government’s mining tax campaign with a local Labor MP branding Tasmanian mining operations as ‘special case’, Senator Stephen Parry, speaking on behalf of the Tasmanian Liberal Senate Team, said today.

“Braddon MHR Sid Sidebottom has been a vocal supporter of Labor’s mining tax from day one, dismissing local concerns as scaremongering and claiming that it may actually be good for some miners.” Senator Parry said.

“But yesterday Mr Sidebottom said: “Look Grange Resources, like any other operation here in Tassie, is a special case and where there are special cases we need to know the implications of the framework (of the mining tax) on those enterprises.”

“The second part of this statement makes clear that the Labor Government failed to investigate the implications of its mining tax on individual operations.” Senator Parry said.

“The Government has no idea of the potential impact of this tax on companies such as Grange Resources, which directly employs about 600 Tasmanians, and has barely bothered to ask.”

“Nevertheless, Labor has committed almost $40 Million of taxpayers’ money to tell the Australian people that its new mining tax will be good for the country and not cost jobs, which, of course, is at odds with what the industry and respected economists are saying.”

Senator Parry said a key question for Mr Sidebottom was what he intended to do to represent the interests of the Tasmanian mining operations he now says are ‘special cases.’

“If Mr Sidebottom is finally conceding that Labor’s mining tax would cost Tasmanian jobs, will he argue with his senior colleagues for differential rates or exemptions for local companies?” Senator Parry asked.

Tasmania Shadow Minister for Resources Mark Shelton

Tasmania Shadow Minister for Small Business Adam Brooks

MINING TAX NOW COSTING TASMANIAN JOBS

Victor P Taffa

Today’s news that an upgrade to the Savage River iron ore mine has been put on hold, due to the Rudd Government’s great big new tax on mining is a devastating blow to the Tasmanian resources sector and the small business community on the North West Coast.

“This is concrete proof that Kevin Rudd’s mining tax will cost Tasmanian jobs. The Savage River iron ore mine is a crucial part of our minerals sector.” according to Tasmania Shadow Minister for Resources Mark Shelton.

“Not only will the postponed investment stunt jobs growth at the mine, it will create uncertainty about the existing jobs at the mine.”

“A lack of investment at the mine will mean that it will be difficult for the Savage River mine to keep pace with international markets and international best practice.”

“Given this clear proof that the mining sector in Tasmania is under threat from Kevin Rudd’s plans, the Premier and the Minister for Resources now need to act on behalf of Tasmanians, rather than their Labor mates in Canberra.” Mr. Shelton said.

“The North West Coast desperately needs investment to drive jobs growth and support the small business sector. It is a tragedy for all small businesses on the North West Coast that service the mining sector that plans to invest in the Savage River mine are now in limbo.” according to Shadow Minister for Small Business Adam Brooks.  

“Today’s revelation is further proof that it is not just the mining industry that will be hit hard by Labor’s plans. Small businesses and contractors who would have carried out much of the proposed work will now miss out.”

“This is a cruel blow that could not have come at a worse time for the many small businesses across the coast that is doing it tough.”

“By supporting and cheering on this new tax, the Premier and the Labor-Green Government have shown how much regard they have for the workers of the North West Coast, especially those within the resources sector.” Mr. Brooks said.

TAS Shadow Minister for Small Business Adam Brooks

Western Australia Minister for Mines and Petroleum Norman Moore

State Budget 2010-11:

Integrated single approvals system designs to buoy WA’s international mining reputation

Victor P Taffa

The State Government aims to further enhance Western Australia’s international mining reputation and streamline the approvals processes with a boost of $8 Million in the next four years.

Mines and Petroleum Minister Norman Moore said today the move was an urgent response to rapid growth in the mining and petroleum industry.

“Establishing a new integrated single approvals system that can deliver necessary approvals within an acceptable time frame and cost to proponents and across Government agencies is vital.” Mr. Moore said.

“This system, which is already under way and will be further improved by this injection of funds, will improve efficiencies and costs in the management of mining and petroleum approvals.”

“Continuing to progress development of advanced IT systems within the Department of Mines and Petroleum (DMP) will enable more companies to lodge, track and pay for approvals online.”

“Such IT accessibility is critical in our vast State to increase investment and to ensure long-term benefits for all West Australians.”

“Streamlining the approvals systems is consistent with best practice and provides greater transparency to the public and industry, while enabling departmental staff to dedicate more time to processing approvals.”

The new integrated single approvals system will capitalise on existing systems which currently enable industry to track the progress of most applications lodged with the DMP across all the business units.

About half a dozen types of applications can also be lodged across the various business units.

“The work to be developed from the funding includes the lodgement, assessment and tracking of more than 100 different types of applications across the department, which will involve four main computer systems representing the Petroleum and Geothermal, Mineral Titles, Environment and Resource Safety divisions.” the Minister said.

“The integrated approvals system will build on the reputation of the DMP’s Petroleum Geothermal Register (PGR) system.

“An Australian-first, WA is leading the way with the PGR system which has received industry praise and attracted interest from other States, Territories and the Commonwealth Department of Resources Energy and Tourism.”

“These other administrations are using WA’s system as a benchmark for the development of their own systems.” Mr. Moore said.

Queensland Nationals Senator Barnaby Joyce

Rudd deserts another principle

Victor P Taffa

The release of the long-awaited NBN study today reveals that Prime Minister Rudd has deserted one more of his once closely-held principles according to Senator Barnaby Joyce Federal Shadow Minister for Regional Development, Infrastructure and Water.

In the 2008-09 Budget the Government committed themselves to:

Decision making based on rigorous cost-benefit analysis to ensure the highest economic and social benefits to the nation over the long term.

Page two of the NBN implementation study explicitly states that it is not a “cost-benefit analysis of the macro-economic and social benefits.” Senator Joyce said.

“The NBN study reveals another Labor broken promise.”

 “Two years ago Mr. Rudd was talking up the benefits of establishing Infrastructure Australia and subjecting infrastructure investments to rigorous analysis. But on the biggest infrastructure project he has committed to he has deserted these principles, just as he has deserted the ETS.” Senator Joyce said.

“Infrastructure Australia has been effectively gagged on the issue. Their public analysis has amounted to five paragraphs last year in ticking off on an investment of up to $4.7 billion from the Building Australia Fund. At almost $1 billion per paragraph, it wasn’t cheap advice. Minister Albanese, the Minister for Infrastructure, was missing in action.” Senator Joyce said.

As Ken Henry, Secretary of the Treasury, stated last year:

“Government spending that does not pass an appropriately defined cost-benefit test necessarily detracts from Australia’s wellbeing. That is, when taxpayer funds are not put to their best use, Australia’s wellbeing is not as high as it otherwise could be.”

“Is it any wonder that this is a Government that has racked up $138 Billion in debt and is continuing to borrow up to $2 Billion a fortnight? Like much of this borrowing, the Government made its decision to spend $43 billion on the NBN in haste. In Senate Estimates last year it was revealed that NBN Mark II was conceived between Senator Conroy and the Prime Minister during two plane flights on Mr. Rudd’s VIP jet.” Senator Joyce said.

“The ‘back of the boarding pass’ approach to infrastructure selection must end. A Coalition Government will conduct and release cost-benefit analysis on infrastructure investments.”

Editor Victor P Taffa listened to the Rudd budget handed down by Treasurer Wayne Swan and sounded good except for one point:

The 40% Mining Tax like the NSW Labor Clubs Tax will hit harder than it sounds. The flow on effect will be enormous and as Queensland Premier Anna Bligh has said will cost Queensland 100,000 jobs.

The Mining Tax will kill off any economic recovery that Australia might enjoy.

Western Australia Minister for Mines and Petroleum Norman Moore

State Government deeply concerned at Rio Tinto plans to shelve development

Victor P Taffa

Western Australia Minister for Mines and Petroleum Norman Moore said the prospect of Rio Tinto’s shelving of an $11 Billion plan to expand iron ore operations in Western Australia highlighted the State’s fears about the Prime Minister’s proposed resources super profits tax.

Mr Moore said Rio Tinto’s reaction to Kevin Rudd’s plan had vindicated the State Government’s early warning that the proposed tax was biased against WA and would impact badly on investment in this State and jobs.

The Minister also warned that the Australian Workers’ Union risked misrepresenting its members by public expressions of support for the tax.

“The jobs of this union’s members are threatened by this unfair and onerous proposal.” the Minister said.

Mr Moore said the super profits tax not only risked businesses delaying or shelving projects (as in the reported case of Rio Tinto) it also threatened to ensure companies looked for overseas alternatives and took their business offshore.

“I heard the Canadian finance minister talk on radio this morning about how that country was poised to capitalise on our domestic situation by encouraging companies to do business in Canada.” the Minister said.

“Other countries are more than willing to take advantage of Kevin Rudd’s blunder and entice business away from Australia.”

The Minister said the tax would diminish the resource sector’s confidence in Australia as a stable and attractive jurisdiction in which to do business.

Mr Moore also said the Prime Minister’s defence of the super profits tax – as a way to ensure the wider community reaped the benefit of profits that would otherwise go overseas – was a red herring.

“Most of the investment which enables the establishment and operation of resource projects comes from overseas in the first place.” the Minister said.

“Mining is a very high-risk business and it is reasonable for investors to expect good returns on their investment.” the Minister said.

“It is nonsense to suggest that any profit made above 6% of an investment in an extremely risky business venture is ‘cream’.”

“If that was the case then people would be better off investing in much less risky Treasury bonds, sitting on their behinds and getting the same return for their money.

“Quite frankly, the PM’s argument is specious and could easily deceive people by appealing to simplistic and populist opinion.” Mr. Moore said.

Some people wonder why Editor Victor P Taffa supports the Liberal and National Parties and not the Labor Party.

The very notion of Socialism is to drag everyone down to the lowest common denominator.

This is not to be confused with an ‘Aussie Fair Go.’

 Socialism is still alive and well in the way in which all Labor Governments govern. Every human being was given talents by God or someone else and so while people are alive on Earth these talents should be utilised and people generally should pursue their maximum potential.

This Mining Tax will be a disaster for Australia and is typical of the Socialist ideal that the Labor Party espouses.