13-July-2010
Portfolio Media Releases, The Economy
It is reported today that BHP chief executive Marius Kloppers has confirmed that his company will suffer “little impact” during the first five years of Labor’s new mining tax.
Shadow Minister for Finance Andrew Robb said as each day passes Labor’s claims that it will raise $10.5 billion in revenue from its mining tax over the last two years of the Budget forward estimates are looking less and less believable. The budget is in tatters.
“Mr Kloppers inferred that BHP would pay little more than $300 million a year for the next few years. If the nation’s biggest miner is going to pay such an amount, there is no possibility of Labor raising $1.5 billion, much less $10.5 billion,” Mr Robb said.
“We have analysts lining up saying that Julia Gillard and Wayne Swan’s massive back down on the mining tax means there will be very little impact on BHP and Rio Tinto from the revised tax in the foreseeable future.
“Respected analysts UBS have said under the revised minerals tax existing projects had been effectively provided with a ‘tax shield’ for the life of the assets, a maximum of 25 years,” Mr Robb said.
“On top of this we also know that the on-shore coal seam gas companies are not expecting to pay any additional tax under Labor’s big con.”
Mr Robb said Ms Gillard and Mr Swan have a lot of explaining to do. “If the nation’s biggest miners are expecting the tax to have very little impact over the coming years, there is no way known Labor will raise $10.5 billion. It’s a sham and Labor’s economic credibility has totally evaporated.
“Wayne Swan is in hiding and Julia Gillard cannot explain where the $10.5 billion is going to come from, money which Labor already has spent.
“Julia Gillard won plaudits for striking a deal with the miners, but all she has done is cave in to their demands, with the miners sworn to secrecy so the extent of her back down is not revealed to taxpayers before the election.
“Wayne Swan’s budget is a house of cards which has now collapsed and what he and Julia Gillard have done is create a multi-billion-dollar black hole in the nation’s finances which taxpayers will be lumbered with for years to come,” Mr Robb said.
Media Contact: Cameron Hill on 0408 239 521