She said the government should also end the fossil fuel rebate and the keep the carbon tax.
“If everyone has to contribute to lifting Australia’s budget out of the red, as Treasurer Joe Hockey is so fond of saying, then the Australian Greens say it’s unfair and unreasonable for big mining companies to be excused on three fronts,” she said.
“First, this government wants to repeal the mining tax, which should be strengthened instead.
“Second, repealing the price on pollution lets big miners off the hook, creating a gaping hole in government revenue.
“Now we learn the Abbott government is not even going to consider ending fossil fuel rebates for the big mining companies.”
Milne said the Greens believed farmers who needed support should continue to receive the fuel rebate.
“But the big miners can’t have it both ways,” she said.
“They’re making a one-off profit from natural resources that belong to every Australian and if they won’t pay the mining tax they must stop reaping billions of dollars from the public purse through rebates.
“Tony Abbott cannot justify handouts to hugely profitable mining companies while claiming he can’t afford to uphold Australia’s universal healthcare system.
“Tony Abbott must end [the] protection racket for his big-business mates.
“This government must do what’s right for communities: keep the price on pollution, strengthen the mining tax and end multi-billion dollar rebates for miners.”
Association of Mining and Exploration Companies CEO Simon Bennison said the constant attacks on the mining industry by the leader of the Greens were inaccurate and needed to be corrected.
The potential damage to the resources sector and the Australian economy by removing the diesel fuel credit was grossly underestimated – or ignored – by the Greens, he said.
“The call for the full removal of the diesel fuel credit is naive and does not take into account the essential role of diesel fuel in the mining industry,” Bennison said.
“Many companies are off the grid and do not have access to a power supply other than diesel fuel generation.
“Diesel fuel is an input cost and contributes up to 7% of project cash costs and any erosion of this will have serious consequences for marginal operations.
“It will affect suppliers and shareholders and the capacity of companies to pay dividends. This will become a deterrent to future investment in Australian resource projects.
“The Greens do not understand that the diesel fuel tax was originally an excise for on-road use to pay for the maintenance of roads by such users. As mining is offroad it has been excluded from the scope of this tax.
“The resource sector, like other primary industry sectors, is therefore provided a credit for offroad use. It is not a subsidy; it simply offsets the tax applied by the government to the landed price of diesel – since the tax is intended for on-road users.
“They don’t seem to understand that Treasury and other government agencies have supported this policy for decades as it is seen as fair and equitable.
“It also has support from the major parties.”
