23/07/2010 - 09:50

Mining tax compromise a fake: Abbott

23/07/2010 - 09:50

Bookmark

Save articles for future reference.

Opposition Leader Tony Abbott has described as a "fake" a deal the Gillard government negotiated with big miners for a modified resources tax.

Mining tax compromise a fake: Abbott

Opposition Leader Tony Abbott has described as a "fake" a deal the Gillard government negotiated with big miners for a modified resources tax.

Small and mid-tier miners are threatening to relaunch their anti-mining tax campaign, possibly as early as this weekend,

"What this demonstrates is Julia Gillard's mining tax fix is a fake," Mr Abbott told reporters in Fremantle.

"The mining tax remains a potent threat to the prosperity of Australia, a potent threat to Western Australians in particular."

Miners say they not been properly consulted over the minerals resource rent tax, the result of a deal hammered out between the government and mining giants, BHP Billiton, Rio Tinto and Xstrata.

Mr Abbott said the tax was a threat to investment and jobs right around Australia.

"The only way to stop the tax is to change the government," he said.

"Quite frankly, the only way to restore Australia's international reputation, which has been damaged by this tax, is to punish the government that was foolish enough to try and introduce it."

Mr Abbott still maintains the that he was recind the mining tax.

"See, we already have a profits based tax, its called company tax. We already have a return for the non-renewable resources taken out of the ground, that's called royalties," Mr Abbott told Fairfax Radio..

"We have a perfectly good system. Under the system that we've got the mining sector has expanded massively," he said.

The Opposition Leader also claims the big miners, BHP, Rio Tinto and Xstrata are not happy with the minerals resource rent tax.

"I mean this idea that they're happy with it is dead wrong," he said.

"They don't like one little bit, even the three big boys. But they thought it was the best deal that they could get from a bad Government," Mr Abbott said.

 

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options