Rio Tinto Australia's Kestrel mine in Central Queensland
The Resources Super Profits Tax that appeared to be set in stone when then-PM Kevin Rudd announced it, then sledge-hammered by knife-bearer Julia Gillard, hurt those feelings.
It’s still unclear as to whether it would be our economic Armageddon if the RSPT was put in place in mid 2012 as planned, but everyone suffers when indecision and uncertainty are rife in a multi-billion-dollar industry.
The tax was announced and the mining giants panicked and sent their bean-counters to every abacus they could find.
While their boffins were doing the sums, mining juggernauts BHP Billiton, Macarthur Coal, Anglo Coal, Xstrata and Rio Tinto threw their hands up and told the world to just give them a second.
That time, which became two months, meant no expansions were announced and few construction projects were green-lighted.
The industry production line that keeps everyone from heavy hauling trucks to engineers and boilermakers in a job were suddenly grinding to a halt.
The new Minerals Resource Rent Tax was announced on July 2 after some serious haggling from BHP, Rio Tinto, Xstrata and the government – and in the Queensland mining world, it was like spring had sprung.
Not everyone was happy and Federal Opposition Leader Tony Abbott is still looking to kybosh the tax plan and junior miners remain concerned about not being heard at the negotiating table.
But the big miners, the ones that employ tens of thousands of people who might fly from their home on the Sunshine Coast to Moranbah in Central Queensland, are happy.
They are still doing their number crunching on how this tax will affect projects, but the smiles are there.
And when companies of this size and scope are smiling, a whole chunk of Australia smiles with them.
This column originally published on SunshineCoastDaily.com.au on July 2.
VICTORY is theirs.
The Resources Super Profits Tax that proved a poison chalice for the Rudd Government is gone, watered into a “minerals resource rent tax”.
Now Prime Minister Julia Gillard and the mining industry can both toast their mutual glory.
When Ms Gillard took office, she pleaded for a ceasefire from the blows inflicted by the mining lobby.
It was understood she would give all the consultation needed to create a worthwhile tax program for the mining firms and that it might take a long time for them to reach an agreement.
As long as it was done by today.
The 40% tax rate that so horrified the industry has been cut to 30% and the cut-in rate will be higher than what the Rudd Government set, allowing easier finance for projects.
Both the Deputy Premier Wayne Swan and our hardened Minister for Resources Martin Ferguson spent three days locked into negotiations with BHP Billiton, Rio Tinto and Xstrata.
But after so much bleating that miners weren’t consulted enough, does three days really cut it?
There wasn’t much choice for Ms Gillard.
She could not risk being stuck in a Rudd-style quagmire with the mining companies.
She needed this win and though she may appear as a leader who can get things done, when someone calls your bluff, folding isn’t usually seen a triumph.VICTORY is theirs.
The Resources Super Profits Tax that proved a poison chalice for the Rudd Government is gone, watered into a “minerals resource rent tax”.
Now Prime Minister Julia Gillard and the mining industry can both toast their mutual glory.
When Ms Gillard took office, she pleaded for a ceasefire from the blows inflicted by the mining lobby.
It was understood she would give all the consultation needed to create a worthwhile tax program for the mining firms and that it might take a long time for them to reach an agreement.
As long as it was done by today.
The 40% tax rate that so horrified the industry has been cut to 30% and the cut-in rate will be higher than what the Rudd Government set, allowing easier finance for projects.
Both the Deputy Premier Wayne Swan and our hardened Minister for Resources Martin Ferguson spent three days locked into negotiations with BHP Billiton, Rio Tinto and Xstrata.
But after so much bleating that miners weren’t consulted enough, does three days really cut it?
There wasn’t much choice for Ms Gillard.
She could not risk being stuck in a Rudd-style quagmire with the mining companies.
She needed this win and though she may appear as a leader who can get things done, when someone calls your bluff, folding isn’t usually seen a triumph.
Climbing aboard "The Borg's" charter plane during the 2009 Queensland elections.
Well it’s a soul-wrenching process but here I am on the internet.
This website will eventually be the hallowed ground where I spew my views and thoughts, my feelings and my published work.
I’m a daily reporter on the Sunshine Coast, music columnist and coal industry freelance writer (more here).
The photo above is this guy right here climbing aboard the Clive Palmer-funded charter plane of then-LNP Opposition Leader Lawrence Springborg during his unsuccessful tilt at the 2009 Queensland election.(story)
It was a short trip from Airlie Beach to my newsroom in Mackay but there’s nothing like being sucked into the vortex of a campaign trail.
From this crowded terrace, I hope to join the public debate on issues of trivial gossip, to multi-national mining deals and media happenings.
So let’s just see how this thing pans out, shall we?
Talk soon.
O
