The Chamber of Minerals and Energy has weighed in to the pre-election debate by claiming a preference for the State Coalition’s proposal for dealing with the controversy surrounding rate exemptions for mining companies with State Agreements.
But while CME chief executive Tim Shanahan said the Coalition plan – a rate-equivalent contribution for rate-exempted companies – was preferable to a Government proposal to undo State Agreements’ exclusion clauses, concerns remained about some aspects of the Opposition policy.
“It is certainly better than seeking to amend the State Agreements themselves,” he told WA Business News.
“Because anything that does that [undoes State agreements] increases the issue of sovereign risk, or the perception of sovereign risk.”
But Mr Shanahan said the Coalition’s plan was still unwelcome in that, like that of the Government, it sought a contribution from mining companies over and above the $1 billion currently contributed.
“It could be millions of dollars per project and that is something that is not at all welcome,” he said
While the agreements themselves may not be “opened up” under a Coalition plan, how a rate equivalent was calculated still created uncertainty, which was not consistent with State Agreements, according to Mr Shanahan.
He criticised all sides of the debate, saying that: “For these issues that go to the certainty of investment of billions, to be raised in the context of an election in the robust way it has been is not helpful.”
A BHP Billiton spokesman echoed the CME position and added that the company would like to see more detail from both political parties regarding their policies’ effects on State Agreements.
Opposition mines spokesman Norman Moore said the Coalition was still finalising its policy on State Agreements but reiterated that the agreements were “off-limits” for the Coalition.
Meanwhile, the Government has accused the Pilbara Regional Council of running a political campaign rather than seeking positive change.
The Government’s attack came after the four Pilbara councils last week repeated their demand for the Government, not the resource companies, to pay up to $14 million in compensation for the State Agreement rating exemptions.
If not, the council said, it would re-run an advertising campaign during the election campaign attacking the Government over the issue.
