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RSPT armistice

PRIME Minister Julia Gillard has made it clear the government will "negotiate" rather than merely...

Blair Price
RSPT armistice

In her first press conference in the top job, she effectively called for a ceasefire with the mining industry.

Gillard has agreed to halt the government’s taxpayer-funded advertising campaign which promotes the RSPT and asked mining companies to cease their campaigns.

While plenty of voters would like to see the super mining tax scrapped, Gillard said the government was determined that Australians would receive a “fairer share” from resources.

Gillard urged the mining industry to keep an open mind on the tax issue and to approach the government.

“Negotiations will occur with the mining industry and they will be met by the Treasurer and new Deputy Prime Minister Wayne Swan and Minister for Resources, Energy and Tourism Martin Ferguson.

“I will seek consensus on the RSPT, but Australians are entitled to a fairer share of our inheritance, the mineral wealth that lies in our ground.

“But to reach a consensus we need to do more than consult, we need to negotiate and we must remove this uncertainty which is not good for this nation.”

BHP Billiton quickly responded to Gillard’s requests by suspending its ads.

“We are encouraged by the comments of new Prime Minister Julia Gillard, that her government will open the doors for negotiation with the objective of achieving consensus,” a BHP spokesperson said.

“The industry has consistently been calling for the government to take the time to properly engage on all aspects of the tax, and we welcome the opportunity to do so.

“We look forward to working with the government in this new way to find a solution that is in the national interest.”

Anglo American Metallurgical Coal chief executive Seamus French welcomed Gillard’s comments.

“Anglo American looks forward to meaningful, substantial and constructive negotiations that address the fundamental design problems with the proposed tax,” he said.

“Anglo American will work with the Gillard government and the minerals industry to deliver an outcome that keeps the mining industry in this country strong and is in the best interest of all Australians.”

The Queensland Resources Council and the Association of Mining & Exploration Companies have dropped their anti-mining tax campaigns.

QRC chief executive Michael Roche said the debate landscape appears to be changing and hoped it was for the better.

“We are taking heart from the prime minister’s comments that she’s ruling nothing in and nothing out, and from that starting point, real consultation can begin,” he said.

AMEC CEO Simon Bennison conditionally agreed to withdraw its campaign “subject to immediate resolution of future tax reform as it applies to our industry”

“Our mind and door has always been open to genuine discussion on tax reform,” he said.

The Australasian Institute of Mining and Metallurgy is hoping it will see a “mutually respectful negotiation” between government, industry and community leaders.

“I’m sure that we have all had enough of competing economic models and political arguments – we are ready to participate in open negotiations that seek positive outcomes for mining professionals and the communities in which they work and live, and for all Australians,” AusIMM president Greg Chalmers said.

NSW Minerals Council CEO Dr Nikki Williams said the RSPT has cast a long shadow over Australia.

“So many Australians have been calling for a genuine discussion about tax reform, which is why we are heartened by the prime minister’s offer to negotiate,” she said.

“We look forward to a constructive and meaningful dialogue about tax reform that will benefit every Australian. The government has to get this right because there is too much at stake for NSW.”

Despite fielding several questions from journalists, Gillard revealed few other details about how the RSPT might be affected under her leadership.

Opposition Leader Tony Abbott took the opportunity to label Rudd’s downfall as an execution carried out by “New South Wales Labor mafia” of union and other factional warlords.

He said he did not expect much to come out of any RSPT negotiations until the revenue assumptions are pulled from the budget delivered last month.

Treasury estimates priced-in $A3 billion of net revenue from the RSPT for 2012-13 and another $9 billion for 2013-14.

Gillard was elected unopposed after she received backing from party powerbrokers, along with the Australian Workers Union.

Just the day before Gillard’s promotion, AWU national secretary Paul Howes warned of scare-mongering by Queensland mine bosses over the RSPT.

The union is now focusing its attention on the spectre of the already-binned Work Choices legislation – introduced when the Coalition was in government.

Mine Life senior resource analyst Gavin Wendt told ILN’ sister publication MiningNews.net that the government is going to hope the leadership change will get them through the next election.

“I don’t think there will be anything in the way of effective consultation,” he said.

“I think they will probably be seen to be going through the motions, but I can’t really see them negotiating on the tax.”

He noted the government would lose a large chunk of future revenue if it altered the tax in a major way.

“Part of their big selling process has been based on what to do with the money in terms of increasing super and reducing company tax rates, so you would have to think that if they would alter the tax dramatically, that the amount of money that would be coming into the coffers would be reduced accordingly and hence they would have to back down a lot of their spending promises, so effectively they have backed themselves into a corner.”

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