Mining myths shattered – time to collect the rent
Media Release: Scott Ludlam, Senator for Western Australia – Thursday, September 8th, 2011
Watershed research from the Australia Institute released today once again illustrates the need for Australia to manage the mining boom properly, say the Australian Greens.
Greens Senator for Western Australia Scott Ludlam said the paper ‘Mining the Truth’ makes it clear the mining industry is dodging its social responsibilities while causing damage to other sectors of the economy.
“The average rate of corporate tax paid by the mining industry in 2008-09 was 13.9 per cent. The average rate of corporate tax across the economy was 21 per cent. The industry only employs 1.8 per cent of workers in Australia, but the boom is pushing up the cost of living for everyone else – especially in Western Australia – and suffocating other sectors like manufacturing, farming and hospitality,” said Senator Ludlam.
“83 per cent of the mining industry is foreign owned. While the mining industry pays less than 14 per cent corporate tax, over the next five years it will send $50 billion in dividends out of this country. Are the majority of Western Australians happy with that equation? I know I’m not.”
“Labor’s proposed watered-down mining tax is weak and gutless, and the Coalition doesn’t have the integrity or the sense to support even that mild measure.
“The original version proposed by Treasury would have been economically responsible and ensure all Australians benefit from this boom. Putting the revenue into a sovereign fund would be sound policy and a safeguard against the inevitable bursting of the resources bubble, but the Government and particularly the Opposition act like there is no tomorrow – it is wildly irresponsible.”
“The Australian Greens want to see the original super profits tax model in place – with the super-rich mining companies paying their fair share while small businesses get a significant tax cut. That model would see a huge number Western Australian businesses better off.”
Contact: Giovanni Torre – 0417 174 302