WESTERN Australian business organisations have warned those hoping to form government that they should not forget the state in their deliberations, especially the impact of the mining tax proposed by Labor.
WESTERN Australian business organisations have warned those hoping to form government that they should not forget the state in their deliberations, especially the impact of the mining tax proposed by Labor.
The mining tax has been somewhat ignored by the pundits in examining the fallout from the weekend’s federal election, but all the local business lobby groups have pointed to its impact.
Labor suffered most in the key resources states of WA and Queensland. It also fared badly in NSW, which has a significant coal mining sector.
In WA, the swing against Labor was small but came against poor polling in the 2007 election where the party won just four seats out of 15. This election they risk losing another seat, Hasluck.
Chamber of Commerce and Industry WA CEO James Pearson said that the election result sent a clear message.
“I am sure that there would not be many Labor politicians that would disagree with the statement that if Labor had gone into the election without a mining tax they would have done better in WA,” Mr Pearson told WA Business News.
Mr Pearson said WA business was expecting politicians of all political persuasions across the country to govern in the best interests of everyone, including WA, which had been driving the national economy.
“What WA business will be looking at, particularly with the Greens having new-found power in the Senate, that they use that responsibly,” he said.
“Remember that before you redistribute wealth you have to create it.”
The CCI chief also warned against the shift to lower immigration, which had proved beneficial to Australia’s economic prosperity.
The Chamber of Minerals and Energy of Western Australia urged the parties that ultimately form government to secure the future of the resource sector.
CME chief executive Reg Howard-Smith said the industry had suffered in recent months from the uncertainty created by the proposed resource rent tax. He said it was crucial the new government delivered stability and maintained the industry’s international competitiveness.
“We urge the parties and MPs who eventually form government to consider the adverse impact of a new tax on the sector’s long-term growth,” Mr Howard-Smith said in a statement.
Association of Mining and Exploration Companies CEO Simon Bennison also highlighted Labor’s performance in areas where the mining tax was a big issue in its post-election statements.
“The clear message from the federal election is that the incoming prime minister should withdraw the extra tax on the mining industry immediately,” Mr Bennison said.
“The majority of Australians ... clearly understand the disastrous effects that such a tax will have on the economy, jobs and families.”
