Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

He should seek to have that discussion with the Treasurer. But, more seriously, in terms of who pays what taxation: I simply say that the mining industry wanted a profits based tax. Yes, it has been complicated—trying to get to this point where we can land this outcome. Industry will only pay taxation at a federal level in terms of when they are receiving super profits.

As the member for Groom has raised the interventions of his very good friend Andrew Forrest yesterday, let me deal with some of those issues. It is appropriate that this is put on the record—despite what I thought was a xenophobic attack on key investors from overseas during the course of his visit to Canberra yesterday. I remind the House that we are a nation built on the back of foreign investment. And if foreign investment, in the form of Hunan, to the value of about 17 per cent, in Fortescue Metals is appropriate, then it is also appropriate that it occurs with respect to other mining and petroleum companies in Australia. I only wish I could attract some similar investment in new hotels and accommodation opportunities in the tourism sector at the moment. I will never shy away from defending the right of Australia to chase foreign investment, and I think the opposition should also stand up to Mr Forrest over his xenophobic attack on non-Australian-based companies yesterday, because where would we be as to the strength of our economy without foreign investment? I await the member for Groom's intervention—his response—which I think should be dignified, in the same way as I made a dignified response to Mr Forrest yesterday.

Let us go to the issue of Mr Forrest. The draft MRRT legislation implements the heads of agreement and the PTG report's recommendation, consistent with the government's undertakings with industry. The government will not breach its commitment on the heads of agreement or the PTG report on key design features of the tax. Fortescue and all companies are able to have input into the legislative consultation process and the details of those reforms. The starting base is an issue we raise. It is an important feature of the MRRT to recognise the market value of past investments irrespective of which company made those investments. All companies with assets in place as at 10 May are eligible for a starting base to recognise past investment. There is no exception in terms of the particular application to FMG.

I also note that on 29 June last year Mr Forrest asked for doubling the recognition of past capital. No deduction is provided for interest expense against MRRT liability because that would undermine the purpose of a rent tax on the value of the resource. Further, the uplift rate is provided on losses effectively market to debt cost deductible. Providing a deduction of interest would engage companies using debt-to-finance projects. Deduction of interest is allowed under company taxation.

Mr Forrest's third issue goes to a technical issue he can make in a submission to the Treasury so as to clarify, as I encouraged him to do yesterday.

On the range of issues raised in terms of the public consultation process on the MRRT, I simply want to say—

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