In Resources

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 Prime Minister 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. 

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