Business steps up pressure on MRRT

The newly elected Gillard government is already under pressure from the resource and energy sector to clear up the uncertainty created by the proposed minerals resource rent tax.

The Chamber of Minerals and Energy chief executive Reg Howard-Smith said that the industry had suffered in recent months by the uncertainty created by the MRRT.

He said the CME will seek urgent clarification on the status of the tax, following the announcement of a tax summit by Independent MP Rob Oakeshott.

Mr Howard-Smith said the industry was also seeking an assurance that member companies and sector jobs would be protected from the adverse impact of Greens policy.

"Green support for a nation-wide uranium mining ban and increasing the rate of the resource rent tax would have a dire consequence for the industry," he said.

The Australian Petroleum Production and Exploration Association is also seeking policy assurances.

"Resolution is needed in several areas directly affecting the capacity of Australia's oil and gas industry to underpin a strong and sustainable economy, provide energy security for households and industry and assist in the transition to a less carbon-intensive future," said APPEA chief executive Belinda Robinson.

"There is little doubt that Australia's reputation as a stable place to invest in the resource and energy sector has taken a hit, particularly as a consequence of the resource tax debate and other tax related decisions," she said.

"The oil and gas industry currently has $200 billion worth of new liquefied natural gas (LNG) and coal seam gas (CSG) projects in various stages of planning with final investment decisions imminent for several of these.

"These projects represent 55,000 new jobs and additional government revenue in excess of $10 billion per year.

"Policy certainty is urgently needed not only for these projects to meet crucial timeframes, but also for the industry more broadly to continue operating with confidence," she said.

The WA Chamber of Commerce and Industry also expressed concern about the MRRT.

"The re-election of a Labor Government means the mining tax remains a major concern for WA business," said CCI chief executive James Pearson.

"To show good faith ahead of the proposed tax summit, the Government should dump the mining tax."