Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for Corangamite for that very important question because we have been having a discussion about this in various ways through question time today. Of course what the government has done is outlined a plan to modernise our taxation system particularly as it applies to non-renewable mineral resources.

Those opposite do not seem to have the most basic understanding of why a resource superprofits tax should be replacing royalties. They do not seem to understand to begin with that royalties are there as a charge for non-renewable mineral resources. That is, they are 100 per cent owned by the Australian people. That is what is different about royalties; they are 100 per cent owned by the Australian people and they are, of course, a non-renewable resource. Once they are dug up they are gone forever. That is why mining companies must pay royalties. But royalties do not give to the Australian people the value they deserve and they have not been giving to the Australian people the value they are due in recent years.

Even the mining industry accepts that there is a case to increase the charge for the underlying value of those resources that are 100 per cent owned by the Australian people. Even the most extreme elements of the mining industry are acknowledging there is a case for a profits based tax. Even the Minerals Council of Australia acknowledges that. The only people who do not acknowledge that are the Liberal and National parties in this House.

The shadow Treasurer came in before and talked about effective rates across various industries. He does not seem to understand that the only industry in the country that gets access to a non-renewable resource that is 100 per cent publicly owned is the mining industry. It is not the transport industry and it is not the finance industry. None of those industries get their input for nothing and they do not get land for nothing. The shadow Treasurer is so ignorant he does not seem to understand that there needs to be a special charge, which is separate from company tax, that gives the Australian people the value of those resources that they 100 per cent own. Those opposite do not even understand this most basic fact. If they do not understand that fact how could they run an economy or a country? They could not even be held in respect by the mining industry. We know what disrespect they have for themselves because they have sold out to the mining industry on this very question.

The Prime Minister before was talking about Mr Rory Robertson from Macquarie Bank. He has put out a report today which I think is very illustrative, so we might just go through it for a while. This is what he has to say:

Only the most naive investor could have imagined that the final prices the mining sector receives from world markets for publicly owned resources could increase by multiples over a decade. And yet governments effectively would keep selling those same resources to mining companies at the same low prices, at effective prices, that were generally set a decade ago.

So those people opposite want to continue charging the same price that is a decade old because they are not prepared to stand up to mining companies and say the Australian people deserve fair value for their mineral resources which are 100 per cent owned by them and are non renewable.

What this reform is about is economic reform for the future to create prosperity for all Australians—Australians in small business; Australians elsewhere in large business; Australians who want to save for their retirement and Australians who want investment in infrastructure. That is what this reform is about. It is the big economic reform that Australia needs to go forward so we can prosper in the Asian century. But, of course, those opposite do not understand any of that. Then they buy the line that has been given to them by the mining industry; the line that somehow effective rates on the mining industry are as high as the rest of the effective rates across other sectors.

Everybody in industry knows this one basic fact: that the mining industry does get access to generous concessions. We on this side of the House do not contest that but the mining industry should not claim they do not so that they can run around the country and claim that our RSPT produces tax rates as high as 58 per cent, which it clearly does not. It is true that very profitable companies will pay more and many companies will pay less under our proposal. We have a fair proposal here which will deliver fair value to the Australian people. But those opposite, who have sold out to sections of the mining industry, have yet again demonstrated how they do not understand Australia’s national interest.

See this speech in context