Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the signed heads of agreement between the government and the three mining companies that declares all state and territory royalties will be creditable against the resources tax liability. Why, then, did the Prime Minister state yesterday that the current treatment of royalties under the mining tax is unsustainable and undesirable given that she negotiated it? Is the Prime Minister now planning to abandon this solemn commitment?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

To answer the Leader of the Opposition's question, I was quoting some of the conclusions of the Policy Transition Group, which was overseen by Don Argus, a very respected Australian and certainly a very respected figure in the resources industry. I think it is perhaps inappropriate for members of the opposition to be jeering a name like Don Argus in this parliament. Don Argus led a policy transition group which brought together representatives of industry and others to work through a series of implementation matters associated with the minerals resource rent tax. Yesterday in the parliament I referred to their conclusions and I referred to a process, which has been ongoing since, involving the Commonwealth Head of Treasury in discussions with state counterparts about the ongoing treatment of state royalties.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Madam Speaker, I ask a supplementary question. I refer the Prime Minister to a letter that was reported in today's Financial Review quoting her statement to the member for Lyne that 'the current treatment of royalties under the mining tax is unsustainable and undesirable'—her statement, not Don Argus's. I ask again: is she preparing to abandon this commitment? (Time expired)

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I refer the Leader of the Opposition to my statement in this parliament yesterday. I refer him to the fact that it is express and obvious on the face of the Hansard that I was talking about conclusions from the Policy Transition Group, the Argus work, and I then went on very transparently to talk about a process that has been being reported publicly for months now about discussions between the federal government and state treasurers about the treatment of royalties under the MRRT.

Just because the Leader of the Opposition has apparently first turned his mind to this question on reading the newspaper this morning does not in fact make it new today. Months and months of work has gone on since the original agreement for the MRRT was signed. The Policy Transition Group began its work, the legislation came to the parliament, the MRRT started and discussions between the federal government and states started. None of that work should be a mystery to the Leader of the Opposition if he does some basic research and pays some basic regard to policy matters. Clearly he has failed to do so.