BC Iron boss Mike Young keeps the heat on Julia Gillard .Now we’re not paerticularly pro mining or extractive industries. But Gillards version of the Mining Super Tax is unjust.Plain and simple.
The Miners Supertax does not apply equally to all miners or mining operations.It exempts the very companies which have gotten away with NOT paying their fair share of taxes for, in one case, 100 years. The big three winged about not making the investment if they knew they would have to pay the tax and there is some merit to this assertion. However, the same applies to Fortescue and the Myriad of second tier miners who were not consulted as Xstrata BHP-Billiton and Rio Tinto struck a deal affecting the entire sector, a deal which has not been made public. Even Fortescue Mining is being denied certainty as to exactly where the goalposts are in this murky all to increasingly familiar Labor deal.
There is some concern that Prime Minister Gillard is way too close to particular companies in the mining sector.As deputy Prime Minister earlier this year she was in Australias North West berating workers who were lobbying for better conditions from these same extractors.
There is the question of why this tax applies to mining alone-and not any business which makes excessive profits. I note the Commonwealth Bank recently announced a $6billion profit.This is one of the same banks which were underwritten by Rudd Gillard using your tax dollars in this classic example of socialising risk and privatising profit.No super tax for Commonwealth .. and lucky Commonwealth.
And as to what happens to the tax collected, I’m drawn to the Norwegian equivalent.When Oil was discovered in their waters, their parliament took the view “It took 300million years for these deposits to get here, and it will be remiss of us to spend it in fifty. Norway nationalised its oil production diverted profits to a future fund which has been a major reason that Norway has the highest standard of living in the world.
Imagine if Australia had done that at federation, or in 1950 or even 1990. Or even now. Instead,Labor links this windfall tax to aged care, there to be squandered on the most spoilt reckless generation this country has ever known,the baby boomers. Like all taxes and bipartisan government actions, there is zero thought of the future.
Australian governments still behave very much as colonist capitalists. Get in rape pillage plunder, we can leave after we’ve destroyed it & set up elsewhere.