David Johnston (WA, Liberal Party, Shadow Minister for Defence) Share this | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Innovation, Industry, Science and Research (Senator Carr) to questions without notice asked by Senators Colbeck and Williams today relating to the proposed tax on the mining industry.

There is really only one constant in the debate surrounding this great big new super resource tax by the Rudd government, and that one constant is that the Prime Minister, in promulgating and advancing this tax, has not been honest with the Australian people. Further to that, he has absolutely no understanding of the mining industry.

This government, right around Australia, are on the nose with the electorate. After 2½ years, they find themselves in a most perilous position. Everybody on this side of the chamber senses it. There are baseball bats waiting for these Labor candidates in the next federal election, particularly in my home state of Western Australia. The workers, the shareholders, the fund managers, the airlines and the indirect industries maintaining equipment, supplying equipment and providing transport—all those support industries—are all waiting with baseball bats for these Labor candidates.

This Prime Minister has not been honest. These ministers have not been honest. They are advancing that this tax is like the petroleum resource rent tax. What an absolute disgrace! It is a misrepresentation—and, quite frankly, it is unworthy of them holding a position in this chamber. The petroleum resource rent tax is six per cent plus five per cent plus depreciation and there is a delayed timeline before it kicks in. This Rudd government’s crazy super tax on the mining industry of this country starts straightaway—it is almost retrospective. The Prime Minister knows that. Minister Carr knows that. Minister Sherry knows that. Why would they seek to mislead people? Why would they seek to try to fudge it?

This tax is a thought bubble from this Prime Minister when he could not get his emissions trading scheme through. He has had to fill a deep hole in his budget forward estimates and he has thought, ‘Where can I go that has some revenue, some cash? I will go to the miners.’ This tax is on top of state royalties—unlike the petroleum resource rent tax. Why would you misrepresent that? Why would you be dishonest about that? This tax is for existing mines, as has been established. Why would you misrepresent that it is like the petroleum resource rent tax? It is totally different.

Mum and dad shareholders who have invested good money through their own super funds or through their own cash in mining companies onshore—as we would want them to do to support our own people—have had the goalposts moved. Our sovereign risk is now looking absolutely trashed on world markets. The dishonesty has been exampled by Senator Conroy and finance minister Tanner, when talking about the National Broadband Network, in saying that the whole scheme would return a modest six or seven per cent—yet for miners, six per cent is a super profit! Coalmining in Queensland and in New South Wales is clearly for the chop. Electricity prices in Victoria are going to go through the roof when the value of coal put into the boilers is actually deemed a super profit. The mining companies of this country commit company tax, state royalties, native title payments, payroll tax and superannuation to the national good. This tax is going to take them up to about 60 per cent.

I say again: there are baseball bats waiting for these Labor ministers. State member McTiernan—running against our candidate Randall in the seat of Canning—has been begging Joe Bullock to go to Hasluck. She has seen the polling and said, ‘Get me out of this; I do not want not to go down the gurgler.’ We have heard nothing in Western Australia about health, given the Prime Minister’s grandiose spendathon on health. But I would also say that none of the other states have heard anything about health. There is no detail. There is nothing. There is just a doorstop and no delivery. There is a doorstop from this Prime Minister and no delivery. You have heard this from me first: it is bye-bye Gary Gray; it is bye-bye Stephen Smith; and it is bye-bye Glenn Sterle.