Stephen Jones (Throsby, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and Minister for Tourism. Can the minister update the House on the state on the state of Australia's mining sector following the introduction of the minerals resource rent tax?

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

I thank the member for Throsby for his question. He knows, as I and the broader Australian community know, that the introduction of the MRRT has not had a negative impact on investment in the Australian resources sector. The reason for that is that, in designing the MRRT, one of our primary objectives was to ensure that we remained attractive for overseas investment—and, I might say, for domestic sector investment.

The House should also be reminded of the fact that the MRRT is the type of tax the resources sector wanted—it is a profits based tax. Just like the coalition opposed the introduction of the PRRT, and we have seen Australia reap the benefits of that tax, so has it opposed the development of the MRRT. But it has been silent in the last 12 months on decisions by coalition governments in New South Wales and Queensland to increase inefficient royalty taxes, which have had a negative impact on the Australian resources sector on the east coast of Australia.

But let's go through some of the key indicators. Australia has had 21 years of consecutive economic growth, and the resources sector has been the key to that economic growth. But, perhaps more importantly, the Australian resources sector accounts for 16 to 17 per cent of Australia's GDP—and, interestingly, has expanded by around 12 per cent over the last year. Australian resources and energy export earnings reached a record high of $193 billion in 2011-12. They are projected to grow to $225 billion in 2016-17.

Let's go to the all-important question of jobs—something the coalition leader does not pay adequate attention to. In 2011-12 total employment in the Australian mining, oil and gas extraction sectors averaged around 248,000 people—20 per cent higher than in 2010-11. Let's go to the issue of investment. Committed capital investment in the resources sector in Australia today is $280 billion—$180 billion in offshore LNG, and investments in key industries such as coal and iron ore.

But my view of the Australian resources sector and the MRRT is not just the view of the government. I refer to the statement of the Governor of the Reserve Bank of 5 February this year, the most recent Reserve Bank board discussion. It says:

In Australia, most indicators available for this meeting suggest that growth was close to trend … led by very large increases in capital spending in the resources sector …

The independent Reserve Bank board also backs my analysis that the MRRT has not been a negative for resource investment in Australia. It is about time the opposition got on board and recognised that the MRRT is good for Australia. (Time expired)

Mr Pyne interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

Order! And you might be blowing your ability to get a question if you do not allow the member for Moncrieff to take the call. The member for Moncrieff has the call.

Steven Ciobo (Moncrieff, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to comments made about the mining tax by the member for Griffith—who is not here; he might be crunching numbers. I quote:

We had reservations about embarking on something so complex but Wayne's view was that without it, his credentials as a reforming treasurer would be shot to pieces.

Given the mining tax has raised just $126 million in its first six months of operation, when will the Treasurer face the fact that all his revised tax has achieved is that his credentials have indeed been shot to pieces? (Time expired)

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

I am invited to make a few comments about the economy. I am invited to make a few comments about resource rent taxes. And I am only too pleased to do so.

I would like to say, first of all, that the job creation record of this government over the past five years of 850,000 jobs is unequalled anywhere in the world. One of the reasons we have been able to do that is that this side of the House has had the courage of its convictions to put in place policies which support jobs and growth. The consequence of that has been that we did not go into recession, unlike most other countries in the developed world. Everyone on this side of the House is proud of that record—everybody is proud of it. As we go forward for the next five years, what we need is a range of policies to build future prosperity and to spread opportunity, and part and parcel of that is resource rent taxation—indeed, as it was 25 years ago, with the PRRT, which since that time has raised $28 billion.

It is the case that, in the second half of last year, which coincided with the first two quarters of the MRRT, there was a huge crash in resource prices. The consequence of that has been less revenue. But that does not mean that an MRRT is not important not just for now but for our children and for our grandchildren—it is terribly important, to be part and parcel of a range of revenue streams so we can provide the money for the education and the health care of all of our people. That is why we on this side of the House understand the importance of resource rent taxation: because it gives all Australians a stake in our future prosperity—all Australians.

The opposite opinion is that on the other side of the House. They do not believe that all Australians should have a stake in our prosperity. They do not believe that we should spread opportunity through profit based taxes. All of our profit based taxes—company tax, capital gains tax, superannuation tax, resource rent taxes—have taken a very substantial hit from global volatility at the end of last year. But for the long term this is precisely the reform the country requires to provide the resources for all Australians so they have a stake in our prosperity.

Don Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Local Government) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order going to relevance. The question was: did the Treasurer agree with the comments of the member for Griffith? He has not answered the question.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Canning will resume his seat. The Treasurer has concluded his answer.