Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

It is with delight that I rise today to speak in support of the Minerals Resource Rent Tax Bill 2011 and related bills. Let us be very clear: the natural resources in Australia belong to Australia—that is, to all Austra­lians. However, this is not an attitude shared by everyone. If you listen to the words of Lord Christopher Monckton, the great climate change sceptic, talking to leaders of the Australian mining industry in a private meeting last year, this is clearly not a view shared by everyone. I would just like to quote from some of the discussions that were held:

Frankly whatever you do at street level, which is what you're talking about here, is not going to have much of an impact compared with capturing an entire news media.

He continued:

And it seems to me that devoting some time … to encouraging those we know who are super rich to invest in perhaps … establishing a new satellite TV channel—it's not an expensive thing …

He went on:

I would like to suggest a modest free market solution to the problem we've identified … which is that we don't have a TV channel of our own.

I would be … happy to work with people … to put together a business plan for such a thing if the idea would be generally supported and then we'll see if we can get someone to be an angel funder.

Did those at this private meeting agree? You bet they did. You do not have be Albert Einstein to work out what they were think­ing. It seems to fit in with the commentary from our Treasurer, Wayne Swan.

Let me say this again: the natural resources in Australia belong to Australia, and all Australians should benefit from the mining boom, not just the mates of the coalition. The coalition want to give back the mining resource rent tax to Gina Rinehart, recently declared by Forbes to be the 29th richest person in the world. To the coalition, it does not matter what happens to Australians or who will benefit from the mining resource rent tax as long as they look after their mates. The Gillard Labor government is not going to allow this opportunity for all Australians to benefit from the mining boom to be lost. We are not going to repeat the actions, or more precisely the lack of action, of the Howard government that frittered away the first mining boom. From 2000 to 2010 the average iron ore price increased fourfold, from $28 per tonne to almost $120 per tonne. Export earnings from mineral and energy resources are forecast to reach a staggering $218 billion in 2011-12, a 20 per cent nominal increase from 2010-11. Treasury estimates are that the MRRT will raise $11.1 billion over the first three years, which we will reinvest in our economy through lifting the superannuation guarantee, through a tax break for small business and through investing in a Regional Infrastructure Development Fund.

Fidelity Worldwide Investment are a significant shareholder in BHP Billiton, Rio Tinto and Newcrest, and they do not share the coalition's view. In fact, their global equities manager, Amit Lodha, said:

… the policy intent of the mining tax … is the right one for Australia … the mining profits tax will give a much-needed boost to innovation in local industries.

He went on to say:

The intent of the mining tax or any excess share taken from the mining industry was right … in that you take money from a sector that is doing very well and invest into technology, R&D … innovation.

Then we have the OECD's 2010 economic survey of Australia, which says:

The proposed mineral resource rent tax (MRRT) on coal and iron ore operations along with the extensions of the petroleum resource rent tax are justified on both equity and efficiency grounds. This resource rent tax is more efficient than the current royalties system as it raises taxation of finite and immobile resources. This will improve efficiency in the resource sector.

Or there is Saul Eslake, program director at the Grattan Institute, who said:

… the principle

of resource rent taxation—

namely, that the return to the Australian people from the exploitation of mineral and energy resources should be based on the profits derived from the extraction and sale of those resources, rather than on the volume of resource production—is one that I (and most other economists) strongly support.

Philip Daniel, deputy head of the IMF's tax policy division, said the mining tax was a 'significantly worthwhile reform' that should be copied by other mineral rich nations. He went on to say that it will strengthen Australia's public finances while leaving a large share of resource profits in private hands.