Labor win refocuses debate on mining tax

NO sooner had the Australian Labor Party limped over the line earlier this week to claim victory in the 2010 election, with the support of two key independents, than attention in WA turned to the impact on the mining sector.

Prime Minister Julia Gillard took a mining tax to the election and has been backed in this policy by the Greens which have provided Labor with a vital lower house seat and will hold the balance of power in the Senate.

In putting their support behind Ms Gillard, neither Tony Windsor nor Rob Oakeshott mentioned the mining tax in their statements about their decisions. But the remaining independent Bob Katter broke ranks with the pair on the day and sided with the Coalition, citing the mining tax as a key issue in his electorate.

The mining tax hurt Labor in a number of states, notably WA where it holds just three seats out of 15, losing one at the recent election.

CME Chief Executive Reg Howard-Smith said the industry had suffered in recent months, from the uncertainty created by the proposed Minerals Resource Rent Tax and would be seeking urgent clarification on the status of that policy, following the announcement of a tax summit by Independent MP Rob Oakeshott.

“Maintaining our industry’s international competitiveness will be critical, in ensuring continued investment,” Mr Howard-Smith said in a statement.

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.

“Greens support for a nation-wide uranium mining ban and increasing the rate of the resource rent tax would have dire consequences for the industry,” he said.

The oil and gas industry’s Australian Petroleum Production & Exploration Association also flagged that it would be raising its concerns with the re-elected Gillard government.

“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,” APPEA chief executive Belinda Robinson said.

“The oil and gas industry currently has $200 billion worth of new liquefied natural gas and coal seam gas projects in various stages of planning with final investment decision imminent for several of these.”